The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-11-16
May DELAY
PAYMENT Of
INCOME TAX
Continued from Page One1

CONTINUED from Page One3
the present provisions Of the Nv
without new burdens yet officials
recognize the emergency and real
ize how serious the consequences
may be to the public if many con.
Germs are forced into bankrqptcy
Income tax executives say they afe
losing men as fast as they employ
new ones. Government salaries
are not comparable to the attractive
offers made by the business world.
Yet the Republicans being pledged
to economy and the cutting down
of governmental expenditures ife
not in the mood to increase the
government payroll.
AS a matter of fact, it isn't the
fault of the government that bust
ness houses have failed to accumu.
late a reserve wherewith to pay IN
come taxes. Many corporations Hl
make provision for their Decembef
taxes but the money market became
so tight that they couldn't borrow
funds to carry on the usual turn.
over of their work. So they bor-
rowed from themselves-they used
up money that should have been
kept for income tax. payments.
Daniel c. Roper. former commits.
sioner of internal revenue, who
f"vors postponing payment Of H.
come taxes, insists that the govern
ment would be amply protected II
it required and interest rate OF per
cent or deferred payments. This
would be higher than market rates
of interest and would tend to dis
courage too much borrowing from;
corporation funds that should be
set aside for income tax payments,
Where Can Line BE DraWHl
Yet the entrance of Uncle Sam
into the commercial world as
lender of money to private business
concerns is a new thing and the
chief difficulty about it all is the
discrimination made necessary by
such a step. Where can the line
be drawn? Many an individual
who pays a small income tax Will
want to postpone payment espe-
cially since the rate of interest VIII
not be a disturbing factor to him.
The legislation will have to %
broad to cover those who pay small
as well as large income taxes. Treas-
ury officials are not prepared to Say
want the effect upon government
finance this postponement OF rev.
nue. collection will make. Ine
United States government has beea
counting upon collections from y
come taxes in order to pay its OWE
obligations.
Repealed or Modified.
Congress will be plunged inW
discussion of the whole tax p'ov
lem the moment the December 90
sion begins. The excess profits u'
is bound to be repealed. or moor
fed. Even inside the goVernmea,
where this tax has been iooss
upon as a splendid money get1tl,
converts are being made daily
the view that the excess pronts y.
has .outlived its usefulness. o..
what shall be put on in it, pisn'
The tax experts are far from unAa
nous in their suggestions. Inc
mand of a few dozen concerns tnIs
they be permitted to postpone ~
ment of December taxes Is Ou
symptom of the intense asllAos
which is expected next montn =. =.
throughout the remainder VI
year on the subject of taxation.
will not be surprising II the ~
question takes even more time Us
the old controversies on the tslm
which used to consume a W.
session of congress to the excius.S.
of other important legislative ~
posals. More individuals and no..
interests are affected by taasas
than by all the tariff laws Oh ~
tory and the SKINS to be raised nov
adays are many times greater Ds, ,
the largest tariff law congress
passed.