Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1921-08-18
REVISED TAXES
ARE FAIR TO ALL
Presidents Statement Explains
New Program.
is JUST TO ALL CLASSES
Reduction Of 80 Per Cent of Hiqfest
Income and Surtax to Produce
More Revenus-Married Mems
Exemption Raised to $500.

Washington, Aug. 15.-An official
statement explaining the administra-
ton tax revision program was issued
at the White House. 1t declares that
"the aim was to establish methods
that would raise the needed revenue
within a reasonable certainty, make
collections sure and inexpensive and
properly adjust the burden among all
classes OF the community"
1T is felt that highly important
progress has been made along these
lines" the statement says, adding:
There has been no effort to relieve
the rich of their share of burdens, but
rather to insure that no class will be
left an avenue Of escape from these
A casual analysis of Sthe proposals
shows that what may be described as
the rich mans taxes will produce
about $1,8OO,OOO,0OO, while the balance
will be distributed over the entire
community, rich and poor.
1.-THE reduction to 80 per cent of the
highest income and surtax brackets
is expected by the experts to produce
actually more revenue from these
sources than do the present much high
er rates. The present rates prevent
transactions which would involve ap-
plication OF the high rates, and thus
keep taxes away from the govern
ment. Also they drive money into the
tQv-frnO To CT Of
business, and they lead to fraud and
evasiOns.
Experience has shown, in dealing
with the excess profits tax, that where
there is periodic selling, this tax is
pyramided, multiplying the burden Of
the consumer and inducing speculation
and waste, which have been largely
responsible for the intense speculation
that followed the war 1t is an unsat-
isfactOry tax on which to base revenue
estimates because it's product of reve-
nue. is so extremely variable, and in
the present epoch of reduced earnings
1t would utterly fail to produce the
amount needed
''In increasing the tax on corpora
ton earnings an exemption is made
of those having earnings of $4,000 or
less-the poor mans corporations.
The number that would thus be ex-
empted would exceed 100000"
Drop ParaIyzing Restrictions.
After reviewing benefits which it Is
declared will flow from repeal Of the
transportation taxes and substitution
of manufacturers tax for the so-called
nuisance" levies, the statement con-
GUIDED:
'The whole tax reform program con-
templates freeing business from what
have been found paralyzing and exas-
perating restrictions, encouraging to
the utmost the resumption of enter
prise and business, removing every
possible incentive to evasion and
fraud, and distributing the tax burden
with the greatest possible equity
among all classes Of people, keeping
in mind the purpose to impose the
larger share on those best able to
pay"
The committee voted to increase
from $4,000 to $4,000 the exemption
allowed married men having an an
nual net income of $1,000 Or less. This
change would be retroactive to Janu-
airy 1, 1921, and would be in addition
to the increase of 5000 in the exemp-
tion for each dependent of a head of
a family previously decided upon.
Agreement also was reached, it was
said, to decrease the manufacturers
tax on candy from 5 to 3 per cent, the
manufacturers tax on fUrs from 10
to per cent and to repeal all the So
called luxury levies, including those
on carpets, rugs, trunks, travelling
cases, pocketbooks, umbrellas and
portable lighting fixtures, as we'll as
those on wearing apparel.