Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-01-22
Business Men of
Country Discuss
Taxes at New York

New York, Jan. 21-BusinesS men
from various parts of the country
attended here today the third nation
al industrial tax conference, called
to consMer revision of the federal
revenue laws. Abolition of the ex-
cess profits tax and changes in the
income tax law, which are on the tax
program of the national industrial
conference board. were among the
subjects discussed.
Charles A. Andrews of Boston,
formerly deputy tax commissioner of
Massachusetts, and now treasurer of
the Gorton-P Pew Fisheries Company,
made a plea for unity in business and
Industrial sentiment on the tax
question. He said the report of the
boards enlarged tax committee els
not considered the answer to the tax
problem"
THE committee has perhaps help
ed" he added, but the problem is
now up to Congress and all business
men must unite to present the effec-
tive suggestions for changes which
are needed"
Mr.. Andrews asserted that, as
business men inevitably would sup
ply the bulk of revenue in every fiscal
year, argumnet on minor details
should stop and they should unite in
q program of essentials lin a spirit
of give and take" to insure payment
of revenue with the least disturbance
to themselves.
nr TbDy,,oC tIo,,,, VII
University. chairman of the advis-
DRY committee, United States treas
ury department. said the general
concensus of business opinion repre-
scented in the committees report did
not meet the approval of many in
Congress.
1T is clear" DR.. Adams said, that
fundamentally the income tax will
be retained, as is assumed by the
committees report which represents
platform upon which all these
points of view can agree. But this
form OF taxation, the progressive in
come tax, must be SO adjusted as to
remove its mal-adjustment and make
it as little evil as possible"
A fiat reduction of surtaxes to a
reasonable level was preferable to
this, he added. The overwhelming
sentiment in connection with income
tax. he declared, must be reckoned
with as fact.
Abolition Of inheritance taxes was
recommended by L. F. Lorree, presi-
dent of the Delaware and Hudson
Company. He said that the war had
not only put strain upon business,
but led to the imposition of a tax
law which further handicapped and
discouraged business. The govern
ment, under the present law, absorbs
most of the capital which ought to
go to the expansion of industry, he
declared. The imposition of a small
sales tax was advocated by Otto H.
Kahn, banker, which most business
men favored. he said, although theo-
rists opposed it.
Now that the business situation had
cleared, business sources for revenue
must be found, he added.
The sales tax was termed socially
unjust" by H. c. Mckenzie, of Wal
ton, N. Y, director of the American
farm bureau federation. He said the
customs and excise taxes recon-
mended by the committee over the
general sales tax is better as a means
of raising revenue.
An increase in the excise tax of su-
gar was protested by Louis Runkel,
president Of the Chocolate Manufac-
turers Association of the United
States. A ten per cent. increase, he
said, would seriously burden this in
dustry.
The committee report opposed the
sales tax as solution of present tax
problems. 1t recommended repeal of
the excess profits tax and a reduction
or modification in the present sur
taxes and proposed that a net bust
ness loss for any year should be de-
ductible from the income of the pre-
ceding or succeeding year. To offset
the decrease which would follow this
system, it was proposed to have a fiat
increase in the corporation income
tax rate, not to exceed 16 per cent.
to increase and extend the stamp
taxes, to increase the rate on first
class postage, customs duties, con-
sumption and excise taxes.