Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-11-19
Saturday, November 10, 1921.
THE PRESIDENT AND CONGRESS

The great majority Of people want
a practical tax law; they cannot say
out of their limited acquaintance
with the subject-as regards the
making but not the payEg-just
what that should be. They have
realized that the problem must be d
knotty one; they have expected spe-
cial interests to pull wires. They
have not and do not seek to penalize
anyone for making money in decent
manner; on the other hand they have
no great amount of sympathy for
those who may be compelled to hand
over to the Government a goodly
share OF their profits, provided they
themselves do not happen to be of
that number. Then they discover in
justice is being done. They don't
make such discovery respecting in
justice to the other fellow so prompt
ly. But when they find that the 9TH
CT ltlIO" 10 putting HIS hichSy NliCiO
the tax gatherer can't get at it, where
those who would profit from having
it invested in enterprises and con-
tributing to activity in business can't
profit by it, why, then, they conclude
that this must not be eXpedient even
II morally right. They see that in
trying to shake down" the rich fell
lows they have overdone it.
The vote of the House disregard
ing the Presidents suggestions would
indicate that the majority of that
body either haven't discovered that
they are overshooting the mark or
are in the mood of the fellow who
abused his nose to spite his face.
Some of them seem to have resented
the President making any suggcs-
ton, notwithstanding he has been
very prudent in making suggestions
although as head OF the administra-
ton entrusted with obligations it Is
incumbent on him to meet those OBJ
legations.
1t will be recalled that the House in
the original bill placed the tax at 500
on incomes exceeding 100000 but
the Senate raised it to 500 and sent
it back for conference. The per cent
under the old law is 65 and here is
the President in his letter to Chair
man Fordney:
I'm seeking to hasten the railway
settlements, growing out of Federal
control, / authorized the director
general to invite the cooperation OF
the War Finance Corporation to
convert salable securities into the
cash needed for the settlements in
process of making.
During the period of public belief
in 80 per cent surtaX as provided
by the House, the sale of these bills
receivable was progressing in most
promising way. Indeed, We had con-
VEL tCu IilClc tildH ?lUV,OUViuVV VI rail-
way notes into ready cash. The very
moment the higher surtax became a
likely levy these conversions ceased
entirely.
"Manfestly the prohibitive surtax
tends to divert our available and
much needed capital from employ
mont in our every day activities to
investments in tax free securities.
Moreover the Government is not
receiving the income that it expected,
money is not available to use in en-
terprises where it would be subjected
to this tax. However just tax law
may be in theory, if it doesn't pro-
duce the requisite revenue it should
be changed. That Is all the Presi-
dent asks. Though believing 80 per-
cent high enough he knows that the
Senate would not compromise on
that so he suggests forty per cert as
probably the best arrangement which
may be made. The Western bloc in
the House Joined with the Demo-
Gratis in favoring the Senate rate. We
are under the impression the Presi-
dent has nothing to regret for MAX
ing the effort he has and congress is
very likely to find itself in the Do
sition of Kitchin, who sponsored
law that didn't work as he intended
it should