The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1921-08-24
WEEKLY NEWS ARTICLE


Tax Revision bill to fool the people,
President Harding's newly assumed
leadership in legislation got severe
Jolt. The recommendations Of the
President, Secretary Mellon and the
majority of the Republicans on the
Ways and Means Committee that the
repeal of the excess profits taxes
and the reduction of the higher sur
taxes be made retroactive to January
/ last, were defeated by Republican
insurgents led by Congressman
Mann, former Republican floor lead
err, supported by Congressman from
the western agricultural States.
Excess profits taxes, as Is we'll
known, are not paid by the corpora
ton but are passed on to the con-
sumner. For this year they have
been paid by the consumer for seven
months and are now in the
treasures of the corporations. II
President Harding and his Secretary
of the Treasury and the reactionary
Republicans in the House could have
their way in making the bill retro
active with respect to these taxes,
the money so collected could have
been passed out by the corporations
in dividends. AS it is, assuming that
the bill passes in. its present
form, they will be paid into the pub
lie treasury.
Although the insurgent members
of the Republican caucus won a vic
tor in compelling the collection of
these excess profits taxes this year,
81 Republicans out of 1875 voted to
let the corporations retain these
taxes, and in this manner repay the
principal contributors to the Re-
publican campaign fund.
Tax Bill Creates Deficit
Instead of producing a scientific
tax bill to meet the requirements of
government. Chairman Fordney has
produced only political bill with
view Of fooling the people into the
belief that the Republican party is
keeping its campaign promise to
reduce taxes and is making q record |
of economy. What he is doing, &C
cording to the spokesman of his own |
party. is producing deficit which |
the government will have to bor-
row money to meet. and pass the1
debt on with the hope that some
thing will turn up.
According to its sponsors, the |
Fodrney tax bill is expected to pro-
duce little over $4,000, 600, 900 in
revenue, which, with the expected
revenue from the tariff bill, would
bring the total revenue up to near
ly four billions of dollars.
Secretary Mellon estimates that
he will require s4,554 100000 to
meet expenditures for 1929, which
would leave deficit of half bill
lion. The Treasury estimate is way
below that of other estimates by
those who are qualified to make
them. AS late as June last, Sena-
tor Borah on the floor of the Sem
ate, said with reference 10 expendi-
lures:
II stop here to venture this
opinion will not call it prophecy
but | venture this opinion: Judging
the future by the past, instead of be-
ing $4,000, 100000 for 1922 it will
reach five and half or six billions,
and / see the items coming now
which will cover that"
Senators Penrose and Smoot. the 4
best-nformed Republicans in the
Senate on financial matters, have
both stated that there could be no
reduction in taXation--that is, with
out creating deficit, because they
realized that government expendi-
lures would not be reduced. The add
has promised some re-
auctions. of course, such as saving
100000 in the Department of
Agriculture. when the entire appro-
priation for that department is only
$4,000, 900. but so far they are on
ly pr misses.
AS to the Fordney estimate that
the tax bill will produce upward CT
~ 0o0,oo0,000, it only necessary
to call attention to the Republican
estimate that the tariff bill will pro-
duce 100000, 900 some put ii as
high as 5000, 1000. 900. The absurdity
of this estimate is apparent when it
is stated that that the high record
of customs collections in any one
year was s333,6S3.445 in 1910,
when trade was good. The Republi-
can estimators propose TO double