Great Falls tribune., 1921-08-17
A Daily Bible Thought
House Tax Revision

has finally made public It's
tax revision proposals. Practically
all the suggestions of Secretary OF
the Treasury Mellon are turned
down. There is to be no three
cent postage. There is to be no
flat automobile tax. The tax bud
Ut is to ,be reduced half billion
dollars or more from the sum
needed to Arun the government an
other year., II sounds pretty good
on it's face,because the transporta-
ton taxes, the so called nuisance
taxes, and a good part Of the lux
ury taxes are to be repealed. But
IN analysiseo of the tax revision bill
Us reported tosthe house reveals a
rood deal of camouflage in its
makeup. Many Of its provisions
are not.to be. applied to the 1921
taxes at.all. They go into effect
Ian. !, 1872, and thevold taxes are
to be retained until then, but the
new taxes when they are increased
are to go into effectsat once being
retroactive to Jan. l last. Also
10 not overlook an inconspicuous
clause in the tax revision bill
which authorizes the secretary OF
the treasury to tissue an additional
half billion dollars in certificates
of indebtedness or short time notes.
It looks as though the Republican
statesmen of the house ,had copied
the financial methods of some OF
the hard up countries OF Europe
and propose to raise needed rev.
enue by borrowing more money
instead of raising it by taxes.
Secretary MELONS idea was to pay
rs you go. Chairman Fordney's
idea seems to be tovcharge the DEF
icit and let some ,other congress
worry about paying the bill. Il
the half billion is borrowed tax
burdens will not be reduced to any
appreciable extent. These taxes will
only be postponed, and when they
are paid by the taxpayers as they
must be eventually they will be
even heavier, because interest will
be added to them.
But we are not inclined to be
too critical over the tax revision
program as it is given out by the
house revenue committee. In the
first place it is only tentative.
After it passes the house it will be
torn into small pieces in the SEN
ate and practically rewritten.
Then it will be once more torn to
pieces in a conference committee
representing house and senate, and
no man may guess what its final
provisions may be when it is sent
to the president for his signature.
It will probably be Christmas be-
fore the business men Of the ma
ton can tell with any certainty,
how much Of their earnings or
profits, if they are fortunate enough
to have profits, are claimed by
Uncle Sam as his share of the 1921
business.
Another reason why we are not
inclined to be over critical in COM
menting on the solution proposed
by the Republican statesmen of the
thorny tax revision problem is that
we fully realize that they were up
against an impossible task. The
Republicans gained power on a
pledge 10 reduce taxes. But in the
last three years since they gained
control Of congress that body has
appropriated money so extravagant-
ly. that they need as much money
to pay their current bills as they
did In war times. To cut down
taxes while spending more money
than ever is a task impossible for
any statesman, 1t has been tried a
million times by individuals, but as
far @ we know there has arisen no
financial genius who could devise
satisfactory method of reducing
his Income snd increasing his outgo
at one and the same time without
borrowing or going in debt, and
continuation Of that policy heads a
man toward bankruptcy and dis
aster. The Republicans promised
to reduce taxes. They can't do it.
They can only pretend to do it by
some transparent subterfuge that
will not deceive intelligent men.
They are up against an impossible
task for the present at least, They
can promise to reduce taxes next
year, or the ysas after, and make
good the promise II they have the
courage to cut Down appropriations
and expenses. They can abolish
many thousand Of jobs and posi-
nSnsaa that Aaf ua &arAa They can