The daily times., 1921-07-15
HARDING AVERSE
ANY INCREASE OF
CORPORATION TAX
STAMP TAI
The President Has Made it
Clear to Republican Leaders
That He Wants a Tax Pro-
gram Adopted Which Will
Lift Restraint From Business
Initiative.
(By David Lawrence) .

Copyright, 1921, by Daily Times}.
Washington, July 14-President
Harding has made it clear to the re-
publican leaders in congress that he
wants a tax program adopted which
will lift restraint from business ini-
tiative. He is not committed to
sales tax, but is inclined to believe
that a tax on production at the source
can be imposed without adding to the
burden of business.
While the tax program is in en-
bryo condition, certain fundamentals
are practically agreed upon. For in
stance, business men everywhere
have been imagining that with the
repeal of the excess profit tax, the
government would be obliged to in
crease materially the corporation
taxes. The aim of the Harding ad-
ministration, however, is to avoid any
Increase of corporation taxes, If pos
sible, and only to impose a slight
addition in corporation taxes, if
necessary. There is. indeed, no
thought Of making the corporation
taxes substitute for the excess pro-
fit tax
This decision ought to be good
news to the business men OF the
country who have been worried over
the prospects of greatly increased
corporation tax. President Harding,
( however, feels that the revival Of
business in America is at this time
a paramount consideration, and that
nothing should be placed in the way
of business incentive. The repeal of
| the excess profit tax is foregone
, conclusion, and it is certain that the
next revenue bill will not attempt to
make the business and industries of
the country carry the bulk of the
/. load. Instead, the tax burden will be
more evenly distributed by the use
Z! of every sort of stamp tax. The three
| cent letter postage may come back.
stamps will be necessary on practical
| ly every kind of business transact
| ions from bank checks and drafts to
real estate papers and other docu-
ments of purchase and sale. While
these SIN Ill taxes may prove annoy
ing and inconvenient, the feeling If
that such annoyance is hardly to be
! compared with the burden hitherto
carried by business as whole. Taxes
at best are disagreeable, but the gov
ernment's job this time is to d1str1'
butte them in such fashion as to stl-
mulate a business revival.
! The tax on production is favored
as a substitute for the sales tax, be-
F, cause it will not be so difficult to col
tlect and will not be paid several
times as goods pass from producer
to consumer. The exact form of this
production tax has not yet been de-
termined, but the idea appears to be
to impose the tax on the output OF
commodities very much as the pres
ent tax on automobiles is covered
In s4ch cases, of course, the manu-
facturer will pass on the payment ol
the tax to the consumer, as happens
with automobiles, but in the sales tai
proposal the chances were that more
than one tax would be imposed OF
the same article as it passed to varl
GUS s\sges.
The progress of the tax program
, is expected to be more rapid a1te
the House finishes with the perman
ent tariff bill. Indeed, it is the ao
ministration's plan to have the Sen
ate sidetrack the tariff bill. when
gets to the Senate, by having length.
committee hearings. The revenue Dli
agreed upon by Republican leader
Twill also be introduced in the Senat
and referred to committee while
: is being discussed in the House.
will mean that the tax bill will com
: out of the Senate finance comm1tte
ahead of the tariff, and probably VII