The county record. [volume] (Kingstree, S.C.) 1885-1975, 1920-03-11
MIR. MeADOO PLEADS
FOR CUT IN TA|
ONE BILLION OF ANNUAL Lev
SHOULD BE ELIMfNATEHs 4
HE DECLARES s. s.

( s,t---- - - : 80 VI
An immediate billion-dollax rsdQe.
ton in Federal taxes was s6sssstd
in statement issued IN Washihgtpn
last week by William G: MeAd96,
former Secretary J of the s9s1rys
The present tax burden is too great
he said, and is Ahaving an injufidxs
effect on business" +, q
Mr.. McAdoo proposed that collSts
ton Of tax to estabEsk q sinli1e
fund for retirement Of the wat debt
which was recommended BY 1ofmer)
Secretary Glass to begin with the is-s
cal year 1920, be postponed fof tso
years, and that the, preferred rsy.s
ment Of European interest 81 fuHded
until Europe is in position to pay It's
interest charges. R 1
"The financial policies Of the na-
tion as embodied in future consfes-
siohal legislation" said Nj. MeAd6o,a
should realize the utmost economy
in expenditure and might wen fund In
long term bonds $1,006p00 900 per.
snnum for two years Of the amount
now raised by taxation. I
Would Delay Sinking Fund. u
"Under the laws q tax to estxblhh,
a 1 per cent sinking fund 10 srefire!
bonds now outstanding is TO be col.
'lected, beginning with the fiscal year
1920. This might well be postponed
for at least two years and thus re-
duce the tax burden by $3.50, ,000; 900
annually. There, too, Is the debt
which Europe owes US, and which now
amounts to about; s10, ,000, 900, 900. II
the economic restoration Of Europe
had proceeded far enough so that Eu-
rope could now pay interest on this
debt tas >she win be able to within a
few years), we should have an income
of $500, ,OO0, 900 from this source. But
that is not now available. Why not
fund that amount against the day
when it win come back TO us7 By
postponing for two years the estab-
Hshment Of a sinking fund and fund
ing the deferred payments cof Euro
pean interest we should cover $780,
100000 of the 81 ,OO0, ,0O0, 900 by which
our taxation might be reduced. By
purchases Of liberty {
bonds for retirement under provisions I
Of existing law the Treasury would be
relieved of large burden now re-ss
Aected in the floating debt and which
otherwise will have to be made UP by
taxation. < ~
Says Taxes Increase Prices. u.
"It would seem that reduction of
our. tax bill for the next two years in
this manner could be accomplished
and that il would involve the issuance
Of additional bonds TO the extent sof
probably not. more than 81 SOC, ,000, 900
81 trust that the wsyst and means
committee Of the House Of Represent
atives in which all tax measures must
of course, originate, viii consider this
question in its broad relations 70 our
general economic welfare. The inn
mediate 1 burdens Of taxation is too
great 1t is having an injurious eff
feet on business. It SIS contributing
factor Of large proportions in the.higb
cost of living. It's inevitable tendency
is to sti1e Few enterprise and to-
throttle initiaGSe.. It is both unsciea- Z
tifc. and iHequitable. In view Of the
Approaching decline in our export
trade with the NEUTRALITY-SUSPICIOUS. in
the volume Of business "A the country,
it will become doubly important to rs
vive and to reduce taxation In order
that business may not have to carry :
an unnecessary tax burden througheutss
this period of readjustment." -