The Richmond palladium and sun-telegram., 1921-03-18
LEADERS FEAR
NEXT STEP ON
TAXES, TARIFF
Agree Surtaxes Work Harm
full Effect-Feel Gross
Profits Tax Ought To Be
Repealed.
SALES TAX IS FAVORED
ny MARK SULLIVAN


WASHINGTON, D. c., March 1S.-
The Republican leaders who are re-
sponsible for the coming tariff and tax
legislation do not give an impression
of being sure of themselves.
They are not agreed among them
selves as to just what is to be done,
they don't realize how great is the
country's expectation of them, and it
is doubtful if they are as fully aware
as some businessmen are of what the
conditions are.
Longworth wants to take up the tax
legislation first, Fordney wants to
make the tariff first.
On this point some western leaders
suggest a compromise in the shape OF
a brief and presumably quickly passed
emergency tariff first, then tax revis-
ion, and then a leisurely and thorough
protective tariff.
AS to taxation, Fordney and Smoot
believe in the new gross sale tax,
while Longworth does not.
Penrose Uncertain.
Where Penrose stands isn't certain,
he had an experience during the re-
cent session which has made him wary
about taking strong positions.
When he first arrived in Washing
ton after his years illness he laughed
publicly at the idea of wasting time
on an emergency tariff measure. Then
some of the western Republican SEN
ators stood him on his head and made
him go solemnly through the motions
of leading the fight for the bill he had
laughed at Penrose will be cautious
ly sure of what he can put through be-
fore he takes a strong public position
again.
All the Republican leaders feel in
their hearts that the gross profits tax
ought to be repealed. and a few of
them have the courage to be willing
to do it. But the others think it
would look too much like exempting
the corporations from burden that
individuals still must bear. They want
merely to reduce it.
Harmful Effect.
In the same way 1t is generally
agreed that the surtaxes of over 40
per cent, on incomes over $4,000 a
year work a harmful economic effect
in that they tend to cause all the great
fortunes of the country to take refuge
in tax free municipal bonds, thus linn
iting the amount of investment money
available for ordinary enterprises.
But some of the leaders fear to re-
duce the high surtaxes lest the act be
unpopular.
Most of the tax discussion is in
terms of popularity and political effect
With a tenure of four full years in
the White House ahead of them, with
a majority of twenty-five in the sen
ate and over two-thirds in the house,
the Republicans are still unwilling to
take a chance.
Lack Courage.
They are unwilling to find out what
is sound and do it courageously. They
talk as if there was danger of losing
their dominance next month.
Aside from their lack of courage
they don't have the information or in.
sight into conditions that many bust
ness men have. The Republican lead
ers think they can leave the income
tax where it now is, and that the pub
lie will go on paying cheerfully as
much as they have in the past.
These Republican leaders, and every
one responsible for the conduct of the
governments business, are going to
get shock when We learn the amount
of the income tax and profits tax turn
ed in on Tuesday.
Amount to Fall Short.
1t will be far short of past amounts
and far short of enough to meet the
governments bills. And if they con
tinue to rely on these taxes next year
,he disappointment will be greater yet
Probably Mellon, after he has had
time, will be able to give the Republi
can leaders a correct view of how
things stand and what must be done.
But Mellon can't supply the Repub
ncan leaders with courage or with CO
operation, or with the kind of person
ality that alone makes leadership.
There's an opening in congress fol
an Aldrich.
Copyright 1921 by the New York
Evening Post, Inc.