The Washington herald., 1921-06-09
KELLER OUTLINES
TAX PROGRAM OF
NATIONAL GROUPS
Measure Backed by Mer-
chant and Farmer Bod
les Discussed.
WANTS TAX REPEAL
'sNuisance Taxes" Burden
Production and Industry,
Representative Declares.
WANTS TAX REPEAL

The tax program of the national
committee of Merchants and Manu-
facturers on Federal Taxation and
the Farmers Federal Tax league.
also a national organization, was
outlined to a large audience at the
City clubs luncheon forum yes
terday by Representative Oscar z.
Keller. of Minnesota, who last week
introduced the measures backed by
the two organizations.
The problem of getting industry
back on a firm footing In the
United States. Mr.. Keller said is
mainly a problem of collecting the
big national tax budget without so
burdening business that II is un-
able to produce effectively. Sec
retary Mellon had recognized this,
he pointed out. in advocating the
removal of the excess profits tax
and also deploring the tax on
transportation, although asserting
it must be retained for lack OF a
better revenue producer.
MY bills provide for the repeal
of both these taxes and also the
majority of the consumption or sos,
called nuisance taxes and the tax
on corporation income as WE'LL"
saIu- ldXtS all
place a burden on production and
Industry and usually they are
passed on, increased from three TO
FIVE times. to the ultimate con-
sumer.
Instead, the program of the
committee of merchants and manu-
facturers proposes to increase the
federal Inheritance tax sufficiently
to bring In about $4,000. 900 a year;
would distinguish between earned
and unearned incomes and cut the
tax on earned incomes to 9 per
cent; and would impose a tax on
land values, exclusive of all i'm
provements, of 1 per cent, with an
exemption on such values below
$4,000. Such a tax would bring in
about $4,000. 900 a year. s.
Would Eliminste 1,73o, ,ooo. 900.
This program would eliminate a
total of s1.73o.000.oo in taxes on
production. and raise more than that
from the privilege of inheritance
and of land monopoly. In addition,
the land values tax would force idle
but potentially valuable lands into
production, thus bringing prices
down to the cost of production .pIus
a fair profit gained in free compe-
tition. At present there are mil
lions of acres of rich ore lands, for
example, held out of use, taxed
only at their value as agricultural
lands. which is practically nothing.
and raising the price of ores because
they are not competing with those
which are being worked.
Senator Calder pointed out be-
fore your club some weeks ago
what a good effect had resulted in
New York from taking the tax off
simply the production of new hous-
ing. Take these present taxes OF
other industries and the same boom
will result in business generally.
resources and you will force these
resources into use. Competition
will fix prices fairly without the
need Of additional legislation.
AT the same time. government
revenues will increase and the war
debt can soon be paid off. In time
1t probably would be possible to do
away with the income tax alto
gether."
Many questions were fired at the
speaker following his presentation
of the Merchants and Manufactur-
ers' program. In reply to the OBJ
lection that the rich would give
their fortunes away before they
died. Mr.. Keller said II was pro-
posed to make the measure proof
against this. In reply to objection
that the land value tax would PEN.
aIize tho man Who was 'land poor"
the speaker said II would undoubt-
edly force his lands into production.
which was of more social benefit
than to have them lying idle.
How are you going to prevent
landowners from passing the land
value tax on in rent?" Mr.. Keller
was asked by several. His reply to
this was that all landowners would
have to put their land in use In
order to rent IT and that competi-.
tion among them would hold the
increase down to the value the user
receiuad