The Washington herald., 1920-12-04
SEES TAXLAW
REPEAL AS US.
GREATEST NEED
Sisson, New York Banker,
Demands End of Excess
Profits Taxation.
URGES LEVY ON SALES
Immediate Declaration Of
Peace and Reconstruction
Legislation Urgent
BY FRANCIS II. sIssON,

about to convene. The country is
now passing through the most crft-
ical period of its readjustment from
a war to a peace basis and only
the most careful thought and
soundest judgement on the part of
Congress in the enactment of con-
structive Legislation can restore
normal economic conditions
The problem of Congress is one
not only of enacting certain con-
sructice. legislation but also re-
moving obstructive laws now in ex-
istence- The paramount need of the
day in fact, is far more business in
government and far less govern
ment in business.
Repeal Excess Profits Tax.
While many changes should be
made in our existing tax law in
the interest of business progresss
the first and most important ste:,
in tax revision should be the re-
peal of the evcess profits tax. This
tax may have been justified as a
war measure. but it clearly has no
place in peace time legislation and
few if any tenable arguments can
be advanced in favor of its reten-
tion-
On the other hand, the arguments
offered against it have become $ o
familiar that if is useless to dis
cuss them Let il suffifice to say
that the inequalities resulting from
Its application are so great as to
condemn il absolutely, and fully jus
tify' its repeal at the earliest pos
sibIe moment
Although the adoption of a budget
system and the Introduction of a
more economic system of admins
tering the government will mate
rally reduce the aggregate amount
of revenues required for the sup
port OF the government, it seems
likely that the rapid fall of prices
which we are now experiencing and
the existing depression in business
viii adversely affect the amount of
revenue to be derived from income
taxes
1t WIN therefore be incumbent
upon Congress to adopt a new meth
cd of taxation which will serve
TO make up the deficit resulting
from the repeal of the excess profits
tax Some form of sales tax at a
low rate seems to offer the least
Objectionable sabstituta for the ex-
cess profits tax since II would be
a
widely distributed that it would not
prove unduly burdensome-
Such taxes viii not have the
tendency to encourage extravaganza
and penaliZe business efficiency, as
is the case with the excess profits
tax, and on the other hand, from
the standpoint of the government
win not be subject to a great fuc-
tuatfon in periods of business de-
pressions and may be easily admin
istered Sales taxes can no longer
be regarded as experiments, il we
can rely upon the, reports of the
success of these taxes in Canada,
the Philippines and in France, and
to a limited degree in several other
countries
Need Budget System-
The great burden of war taxation
has brought to business men with
added force the need of adopting as
a permanent part of our machinery
of government a well reorganized
budget system which will result in
the placing of the financial opSra-
tions of the government on a
scientific basis, thereby helping to
eliminate waste and extravagance.
Legislation to this end should be
among the first considered by Con-
gress-
o equal Importance as compared
with the problem of taxation is the
state of our international relations
and their effect on our present and
future foreign trade. In spite of
the fact that more than two years
have elapsed since the signing of
the armistice we are still, theoreti-
Cally, at least, in a state of war
with Germany and her allies.
Entirely aside from the question
of whether or not we should enter
a league of nations, no doubt exists
as to the necessity for the estab-
lishment. at the earliest ossible mo-
nent. of a state of peace with these
countries and the Strengthening of
international economic relations
with the whole world.
Trade Depression Temporary.
While it seems probable that the
resent period of industrial depres-
sion is but a temporary one and
hat it Is only question of time be-
fore our industries will be function
ing as usual, 1t is quite evident that
our future prosperity is largely de-
pendent upon our international
trade.
Valuable service can be rendered
through the enlarging of the gov
ernment's facilities for obtaining
prompt and accurate information in
regard to conditions existing in for
eign countries which will affect our
foreign trade and the prompt dis
tribution of this information to
business concerns who can use il
to advantage. OF equal Importance
with the enactment of legislation
necessary to placing the government
on a sound basis is efficient admin
istration of existing laws.
Fundamentally. economic condi-
tions are absolutely sound in the
United States. and what is chiefly
needed to preserve ur prosperity Is
just common sense-constructiye CO.
operation between Congress and the
progressive business interests of the
country.