The Birmingham age-herald., 1920-03-05
McAdoo Suggests In1mediate
 Reduction OF Billion h Taxes
Present Tax Burden Is Too Great and Having Injuri- ous Effect on Business, Declares Former Secre- tary of Treasury
By Associated Prea

I Washington. March 4.--An immedi- ate billion dollars reduction in federal taxes was suggested in statement is- sued here today by William c. Mc- Adoo, former Secretary of the Treas ury. The present tax burden is too great, he said. and Is having an in furious effect on business.p
 Mfr McAdoo proposed that collection Of & tax to establish sinking fund for retirement of the war debt. which was recommaTde bss former 4Secresary Glass to begin with the fiscal year l 1920, be postponed for two years, and that the deferred payments of Euro ,rean interest be funded until Europe Is in position to pay it's interest charges
 "The financial policies of the nation. as embodied in future congressional Legislation said MT. McAdoo, should realize the utmost economy in expendi- ture and might well fund in long term tonds si.ooO, 900, ,ooo per annum for two years of the amount now raised by taxation.
 HUnder the laws. a tax. to establish i per cent sinking fund to retire bonds now outstanding, is to be col. lected beginning with the fiscal yeaf 1920. This might well be postponed for at leas. two years. and thus re- duce the tax burden by $250,000,000 annually. There. too. is the debt which Europe owes us. and which now amounts to about si0,0oo ,000,000. If the economic restoration of Europe had
 
 could now pay interest on this debt Gas she will be able to within few yeals) we, should have an income of $500 ,000000 from this source. But that is not nov available. Why not fund that amount against the day when it will come back to us? By postporine for two years the establishment of a sinking fund and funding the deferred payments of European interest, we collars by which our taxation might he reduced. By discontinuing pur- ehascs of Liberty Bonds for retirement under provisions of existing law the treasury would be relieved of large burden now reflected in the floating debt and which otherwise will have to be made up by taxaton. It would seem that reduction of ouf tax bill for the next two years in this manner could be accomplished and that 1t would involve the issuance of addi- .ional bonds to the extent of probably not more than $1,50o. .00000
 q trust that the ways and means committee of the House of Representa- tives. in which all the measures must of course originate. will consider thia question ii is broad If eia tions to our general economic welfare The lmnle diate burden of taxation k too great.
 Tt is having an injurious effect on business It is a contributing factor eff large proportions in the high cost of living.
 Tits inevitable tendency is to stifle rew enterprise and 10 throttle initia- tive. If is both unscientific and in equitable. Tn view Of the approaching decline in our export trade with the inevitable reduction In the volume of business in the country. it will become Goubly important to revise and to re- duce taxation in order that business may not have to carry an unnecessary tax burden throu ghout this period of readjustment"