The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-01-24
PALLADIUM NEWS BUREAU

PALLADIUM NEWS BUREAU
WASHINGTON, Jan. 24.-Ill-judged
taxation has done it's work in helping
to kill, for the time being, the goose
that laid the golden egg. in the opinion
of Otto H. Kahn of New York, publ
cist and one of the best known Amer
lean financiers, which opinion he has
tons on Tax Revision and the Sales
Tax" copies of which have been dis
tributed to members of congress.
Kahn asserts that it is not financial
deflation which has hit the farmer and
the cotton grower and has caused the
value of their products to shrink be-
low the cost of production; that it is
not financial deflation which has
brought about the economic turmoil
that confronts this country today. He
states that one of the principal causes
for our present discontinue is the
existing taxing system.
Must Retrace Steps.
1t would seem apparent that we
cannot hope for a return to normal
conditions of trade, industry, finance
and prices until, among other things
foremost among which is reduction
in government expenditures), we re-
trace the steps rashly taken partly un.
der the impulse of war conditions and
partly under the inspiration of class
animosity and sectional bias, in the
matter of taxation" states Kahn. He
registers vigorous protest against eek
IRENE surtaxes and an uncouth excess
profits tax"
There are indications, however, that
part it must play in bringing about a
return to normal conditions Every
appropriation bill which has been re
ported to the house in recent weeks
has been ruthlessly cut and slashed
and the ways and means committee is
now actively engaged in the consid
Grafton OF taxing reforms.
Offers Program.
kahn's booklet is not confined to a
criticism of taxing evils. In fact he
offers program for tax reforms which
is receiving most respectful attention
Business men in Richmond, Ind, and
other cities of the Sixth Indiana dis
trict have lately shown great interest
in the proposed sales tax. Kahn advo
Gates carefully designed gross sales
or turnover tax, limited to commodi.
ties, but only at a rate which would be
an almost nominal one, say, one-third
of one per cent (exempting, possibly
the sales of their products, including
live stock by farmers)."
Estimated Sales Tax.
Kahn estimates that at a rate OF
one-third of one per cent a gross sales
or turnover tax on commodities ought
to bring in somewhere between $3.50.
100000 and s650,O00,0OO for say, the
next II months period"
He admits that this would not be
enough to make up for the yield from
the excess profits tax and from "othel
taxes that ought to be revised or abol
| ished." He says that the estimated
yield from the sales tax he proposes is
larger sum than the excess profits
tax is estimated, by the treasury ex
perts, to yield for the same period.
Urges Conference.
| Kahn suggests that congress "invfte
number of duly qualified men of diff
ferent callings and affiliations, includ
ing representatives of business, agri
culture, labor and the professions, to
sit in continuous session, thresh out
conflicting views and evolve a compre
| HShotfV oSHChC tldAlIlS SySItu1) Ill CO
/ operation, of course, with the subject
to the congressional committees in
charge
| He expresses the belief that collab
Grafton in some such way would be
most effectively conducive toward er
tablishing a truly sound policy AM
Well-balanced system of taxation"
Offers Advice.
The New York financier offers thi.
advice to American business men
That the business community go slow
| in sponsoring any methods of taxation
| which may give valid ground for TIL
impression that, in their contribution
to the thought on tax revision, the
i representatives of business are unduIy
concerned with conserving their ow-'
interests. and aiming to curtail thai!
proper share Of the fiscal burden whic;