The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-04-21
WANTS WHOLE TAX
SYSTEM REVISED
Congressman Fess Asks
Commission to Inquire
Into Subject
FAVORS SALES TAX
FOR SINGLE YEAR

Would Reduce SurtaXeS and Increase
Corporation Income TaX-Much OppO-
sition to Sales Tax Developing in
Senate.
WASHINGTON. April 2l.-The taxa
ton system of the United States needs
a complete revision, Il careful study by
experts, and a more stable policy before
prosperity will be attained and capital
encouraged to return to productive ac-
tivity, Representative 5. d. Tess of
Ohio declared in a speech in the house
in which he discussed his resolution to
create a commission to inquire into the
federal system and recommend changes.
The commission provided for in the
resolution is to consist of eleven mem
bers, three each from the house and SEN
ate and five outside OF congress. all to
be appointed by the president. The
commission is authorized to spend not
more than $4,000.
Mr.. Tess said that the one question
now before the country was the fiscal
policy and that upon the ability of the
government TO solve il depended the
welfare of the people. 1t would be pos
slble to repeal the excess profits taxes.
he said, without resOrting to a substi-
suTtaNes be reduced and their loss made
up by increasing the present 10 per cent
corporation income tax to IS per cent.
FavOrs Temporary Sales.
While opposing a sales tax as a sub
stitute for the excess profits tax, Mr..
Tess thought that it would be wise to
have a sales tax for 4 period OF one
year in order to pay off the floating
debt.
In unfolding his general proposal that
capital must not be too greatly bur
dened by taxation 50 as to restrain it
from investment in production. Mr..
Tess said
The lowering of the cost of produc-
ton Is not within the province OF legiS-
lation, but is purely economic, and the
laws of economies will operate to relieve
the situation if allowed to function nor
mally without governmental interior
Cncc. Already the level of cost of pro
duction is lowering toward the normal.
Some articles OF CONSUMPTION are now
down. if not below pre-war prices, es-
peclally the farm product.
Retail Prices Must Drop.
The manufactured article at whole
sale has materially dropped. but not so
materially at retail. The latter must
drop, since the public, willing to pay
war prices during war. strikes against
paving them two and onc-haIf years
after the war is over.
The manufacturer contends he cannot
reduce because he still pays war prices
in the main for capital rent, taxes, fuel,
Transportation. wages, etc While this
is true i'm "a degree. it cannot be over
looked that a. tho year 1920 was a year
of dangerous imitation of industry, the
year 1921 * bound to be our greatest
These very facts forced the slowing
down, if not the closing down. Of in
du~try at the close of 1920, as felt in
every line of industry. 1t was the com
puleion of the public demand for a low
er cost level of articles of consumption
The effort of industry to function
after the abnormal activity in produc
tion induced hy war demands which
caused "a degree of eNtravagancc inCrcd-
iblc to the average mind will gradually
succeed in returning to a normal basis
of production if allowed to operate mp
on economic lines. This viii not call foI
legislation. The best thing We can do Is