Pueblo chieftain., 1921-09-12
HARD TO DETERMINE
HOW TAX WILL CHANGE
tcon,inued from pas. one,

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ropean governments. These loans are
now in form analoeous to demand
notes. obviously this is an ineIpedient
form because the debts could not DOS
sibly be paid II the United states
should demand them. In fact. our debt
on these loans and there is now an
accumulation OF Is per cent of overdue
interest The annual interest paya bic
on these foreign debts Is half 4 bill
lion dollars. a sum which. II paid.
would enable ue to make . consider
able reduction In our domestic taxa
ton. /, is hoped that within the COM
ing year these foreign dcbts can be
refunded in such . form and with such
a ratc of interest that our debtors
can begin to pay their interest
y bill giving Secretary Mellon tn.
authority TO arrange this l. now pend
Ing in the senate. There il much oppo-
siion TO II but the probability Ia IL
Will pass within a reasonable time.
Tho third thing which may be ex-
pected 10 happen under favorable cir
cumstanccs during the coming year is
marked reduction in our appropria.
tons for military and naval arma-
mont. IL Is hoped that this will follow
tho coming conference for Limitation
OF arrnaments. and II II does follow
ahaN NAe' VIII cHhple US 10 rcduCe the
quantity OF our taxation appreciably.
IL these three things should happen
then IL IL likely that next year will
So. proposal for fundamental
change In the form of our taxation. a
change which may reduce the amount
h1lf IN" present shm. and which may
Introduce n sales tax or some other
form OF direct tax to raise the bal
ancc. on this point there arc some
significant sentences in the speech
which a member Of tn. cabinet. Mr..
tuesday night He said 1t 1. IN
t'os OF those carrying tho largest re-
sponsibility that for tho Immediate
present tho method OF raising revenue
can probably not bo fundamentally
changed. After tho rcfundinx OF our
public debt. which must come in due
season. It Will. no doubt. be possible
to devise a method for tn. ultimate
collection that will stimulate rather
than In any way retsrd business. and
spread the burden In right proportions
to every man and woman in tho coun-
try. who are all beneficiarics Of the
results for which tho money va. spent.
Personally. I am willing to say mos,
smphsticslly that this country csrno,
90 on and must not attempt to go on
indefinitely dufirs peace time with
either tho form or tho degree Of tara
meet tho emergency OF war. our col
loeesl income taxes ~ere adopted with
an eye single to one thins. namely. the
raising of money in the largest ausn-
uty and with tho greatest speed. We
took tho device Of going straight
where tho money was, and taking n
futhlessly. tho war tax Jaw vas pase
I'd In tho spirit Of tho draft act. IL par
took Of tho nature Of a comma ndserirx
nf money. In the enerrorc, OF war this /
was proper enough. but to keep up
this form Of taxation tn the same de-
gree during peace time would. Of
course. he intoiorshic. Tho time IL too |
short and the governments need Of |
money too great TO turn around imme
iia'ely in this regard bu, express
nc hope and expectation that soon sc |
sh1ll be able to change our eys,em of /
ars,ion so as to raise less Of our rev. i
'nus through bu,oensome income /
,'hnr form OF direct tax on the pro-
iuction or consumption Of eood..-
As to quantity of taxation. Senator
'moots prediction that II IL likely TO
20 increased is not received with a.
much credence az his usually careful
tstements generally arc. All the op-
r3tions already mentioned In the pres
mt article should result in reductions
4 our taxes. Senator Smoc'. in pre-
letting an increase. probably had in
mind the likelihood of pressure for a
oidiers bonus so insistert as to be
officially irresistible.
Copyright 1871 by Ser York Eve
ing Post Inc New York Evening
os, Syndics'el