New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-04-23
TAX RATE Of ONE
PER CENT URGED
AGITATION FAvORS ELlMINA-
TON OF PRESENT ASSESS
MENT ON PROFITS.
PEACE-TIME ARMY ASSURED
Thirteen Branches Of Service, Particu-
Iarly the Educational Advantages,
Believed to Be Chief Inducements
Congress Favors Women's Bureau
BY JAMES p.

Washington.-There is small prob
ability of any revenue legislation dur
ing this session of congress. Recent
~ there has been a good deal of aslta-
tion in favor of eliminating in large
part or entirely the present tax on eX'
cess profits and the substitution or a
straight | per cent tax on all sales 10
consumers, but the majority members
Of the ways and means committee or
the house of representatives, ana or the
senate finance committee have not as
vet seen their way clear 10 give their
approval to such legislation. The eN-
cess profits tax has never been popu-
lar, but it Is n good revenue producer
bringing in more than Sl,OO0,0OO.OOO n
veal and the government is reluctant
TO abandon It..
The treasury statisticians have not
been able to furnish congress with de-
~pendable data relating TO the probable
revenue that could be derived from n
sales tax. 1t Is pointed out that there
Is no sure way of arriving Mt the
amount of money that would be
brought In by applying Il ! per cent
tax on all retail sales for the reason
there are no reliable statistics relat
ing to the total retail sales of the
In a rough way II has been
estimated that a sales tax would bring
In as much money as is derived from
the excess profits tax, but the men
who are dealing with the governments
finances are not at all certain that 1t
will turn out that way.
Treasury Faces Deficit.
Everybody concerned realizes that
now is no time for taking steps relat
Ing to the governments finances I'M
less there Is certainty as to where
those steps will lead. The United
States treasury Is 10Y facing n large
deficit, and It is n grave question as
to whether the government can get
through the next IS months without
another bond issue. 1t certainly VIII
have to issue more bonds, the treas
ury officials say, If there shall be any
reduction In the revenues assured I'M
der existing legislation or II there shall
be additional appropriations calling
for the expenditure of enormous sums
Of money. The ways and means com
m,ttee and finance committee mem
hcrs ARE also confronted with the ques-
ton as TO what effect, If any. the abol-
ishment of the excess profits tax and
the substitution of n sales tax would
have politically. This Is really the
big stumbling block In he way of IA
vc-able action by these committees on
the proposed repeal OF the excess
profits tax. OF course. the revenue
brought In by the excess profits
AK comes from the excessively
prosperous individuals and corpora
tions. In the end, many economists
argue however, that this tax, like all
others. Is paid by the consumer. II Is
argued. for Instance. that the collec-
ton of this tax on excess profits has n
great deal to do with the high cost of
living. Economists differ as TO wheth-
er this Is the fact, but they agree on
the general proposition that In the last
analysis this tax Is charged up to the
consumer and in this may, of course.
does boost the cost of living.
A universal sales tax would, of
course, have to be paid by the con-
Under the plan which the ma.
jority members Of the ways and means
committee and the finance committee
haze been considering the retail mer-
chants would collect this tax for the
yernmpn