Pueblo chieftain., 1921-04-01
UP IN THE AIR
CONTINUED from PAGE one)

the leaders agree that the very rich
people OF tho country. who are taxed
at present from 40 to 20 per cent OF
their Incomes. arc seeking refuge by
taking their money out OF ordinary in
vcrtmcnts and putting IL into govern
ment, state or municipal bonds which
are exempt from taxation. This being
so It Is argued that IL viii be wiser
/ to remove this temptation by lower
ing the taxes on very largo incomes TO
n maximum OF not over 20 per cent.
The leaders agree that to tho por-
tIon OF the public which does no. un-
| derstand economies this would have
tho appearance OF making thfnEr easier
for the rich. without doing anything to
| help people OF smaller income. But
in spite OF this unfortunate appcnr-
ancc. from a political point OF view.
4 IL In practically certain II will bc done.
As to tho income tax on smaller In.
! comes. those OF from 5000 to $4,000 a
year. there II marked difference of
| opinion among tho leaders. some con-
code that tho present income taxes,
even in comparatively small incomes.
arc intolerabi. and believe that they
should bc drnsticaiiy reduced. on the
other hand. some very important lead
crs believe that the government In 80
much In need OF money that II will
not be possible to make any change in
tho present taxes on incomes OF from
1900 to $40. .ccp The net Impression
tina, on these smaller incomes there Ia
little likelihood OF reduction.
What can be done about reducing the
income taxes depends largely of
courre. on what other form OF taxation
can be found ms substitute for them.
Tho ono now form OF taxation that 10
univ, ,rualiy discussed IL tisr direct
sales" tax. occasionally known as the
turnover. This project purposes a
tax of n fxed percentage on every
thing that is bought or sold. The pro-
posai as n whole cannot be readily dis
cusscd in n small space because IL
form IL would be universal direct
tax OF ono per cent on everything
goods sold by retail stores. by whole
salers. by manufacturers. salaries.
| wages: the sales of land. houses
shares OF stock. bonds, and everything.
Some wouid mako tho rat. not over
| one-half OF one per cont. Others would
exempt farm products and wages.
Without attempting to describe the
variations Of this proposal Il can be
said that there Is difference of opin.
| ion among tho leaders a. to whether
the idea OF a sale tax In any form
should he adopted at all. Senator
Smoot, of tho finance committee, and
chairman Foryincy. Of the ways ard
means committee. arc believed to be In
favor OF some form Of this direct salce
! tax Some OF the equally Important
/ members are believed to be still dub
| ious about II.
Tho least encouraging aspects os
these talks with those who will write
| the new tax Law IL their lack OF author
| ity or positiveness. They do not seem
! TO approach the subject with confidence
| OF courage. For example. II is en-
couraging to fnd a business man who
80 = s~-Hu-r - 'he 49, o~ioh'ie
business saying frankly and boldly
t.aa. .-4.tt sUsus ~ Oeat tsN OF
fifteen cents pound and gasoline flve
cents a gallon while the congressman n
or senator who is TO make the tar
shrink with tiniidi,y from such pro-
posal
Copyright. 1891. by the New York
] Evening Post. 1nc.)