Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-12-21
By Assooiatsd Press.

ny Associated Press.
Washington, D>o. 11-Bustnas. :,
sne country 10 demanding and mus
nave revision Of the tax laws Il n II
to continue . healthy growth. Otto d.
Kahn. New York banker. told tha
house ways ana means commits Ia
day IN the course Of q statement i.
which he denounced economic asnect.
OF tho treaty OF Versailles and de-
clared for = continuation Of inoon.>
gurtaxes.
The sxosss profits tax ~must soxs
Mr.. Kahn said. adding that rh3le Il
was theoretically sound its disadyan-
tases outbalanced tt advantages.s
Confirmation Of the income surtax.
81, Mt. Kahn explained, was q social
and economic nsoessity, but be
warned against excessive lsyiAs on
tho higher incomes. He said also thai
no opposed any exemption undar In
come tax provisions
Your problem" M. Kahn oou-
dnued, rs to find out how to make
the surtaxss economically sound. It
IL a question Of finding out what
rates can be made to produce the
maximum. But think there 10 dan.
ger in excessive levies in surfaces,
and this should be guarded against
Fordney Favors Sales Tax.
Before Mr. Kahn was called Chafr<
man Tordney announced that he and
other members Of the COMMITTEES
were In favor "of some kind" OF :
sales tax as one Of the means Of rais-
ing the $4,000. 100000 revenue needed
annually by the government.
TT seems q afsensible tax" said the
chairman, but we do not want :
sales tax that VIII be multiplied and
pyramided into a burden on the COM
snn1er. We want to avoid q law
which viii cause to be passed on t6
the consumer levy which nets moro
profit to the merchant than tax to
the government"
Kahn Flays Versailles Treaty.
Mr.. Kahn was asked during the
course OF his statement whether he
thought the signing Of the treaty OF
Versailles would obviate any OF the
difficulties. Industrial and financial
now confronting the country. He re-
piled that the Versailles peace was
as equally devastating as the war In
It's disregard Of economic aspects"
Mr.. Kahn blamed ''the present
financial turmoil for the predicA-
ment in which the farmers ind them
selves. He said their condition was
not due to financial dehation because
there has not been any financial de-
dation so far"
Taxation, according to Mr.. Kahn
was one Of the factors bringing about
a collapse Of the market. He declared
It was necessary that we retraos our
steps and re-establish . saner and
fairer system OF taxation w1tnous
any undue tenderness TO capital.
No Need to Worry About Rieh
Declaring that the rioh "are very
canny and will protect thsmseaves
always. Mr.. Kahn said capital
should pay its just taxation. and
that a system must be worked out
which would compel these taxss 70 DO
paid.
Asked resardins recent proposals.
TO tax bank deposits. the Witness
said such . step would b almost
calamitous In It's effect. It would
practically make us 80 back to the
days of barter-would be throwing 9
monkeywrench into tho whole
machinery OF finance" said he.
Takes Dig at MoAdoo.
Questioned as the the statement OF
w. q. McAdoo, former secretary OF
the treasury, that dehation had been
carried too far and that federal re-
serve banks should be allowed to re-
duce interest rates and member
banks encouraged to extend more
liberal credits, Mr.. Kahn said smil-
ingly that with all due respect to
Mr.. McAdoo and his ability, think
that statement was made with an eye
to 1924 rather than 1921"