The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-07-25
SMALL CHANCE
FOR FALL OFF IN
TAXES FOR 1921
Hopes to Reduce War
Burdens Go Glin1-
y1,ering.
BY DAVID LAWRENCE.
Especial to The Argus.)

the year 1921, which must be paid
next March, will be reduced slight
ly. if at all.
The painful truth that after all
the talk about economy, the Amer
lean tax payer will not be rid Of
his war burden. is at last being ad-
mitted by the leaders of the Repub-
lican party Secretary Mellon of
the treasury department, on the
one hand, has told the ways and
means committee of the house that
judging by what has happened thus
far fully $4,000, 100000 in revenue
will be needed to run the govern
ment, and Senator Penrose has in
timated, on the other hand. that he
had little hope of seeing taxes re-
duced. 1t will be remembered that
Secretary Houston of the Demo-
cratic administration told the coun-
try last year that he did not be-
Eeve government expenses could
be cut below $4.000,000, 900, and
that. therefore, all promises of
lower taxation were unwarranted.
So a Republican secretary of the
treasury now agrees with a Dem
ocratic secretary of the treasury
in naming $4,000, 900, 900 as the gov
ernment budget, and all hopes of
lower taxation are going a-glim-
mering. Mr. Mellon has gone a
step further by telling the Repub-
lican ways and means committee
another painful fact, namely, that
~ iah
has been so much controversy and
which has just passed the house,
will not yield more than s450,000.
600 annually, and perhaps less.
Originally it has been estimated
that the new tariff would furnish
$500 900 900 Thus the Fordney tar
if will bring only about one-tenth
of the total revenue needed to run
the government There was a time
when tariff bill would yield about
half the revenue of the govern
ment. but that was when the United
States government could be man
aged with a single billion dollars.
Gentle Hint.
Secretary Melons statement,
that the new tariff would yield only
one-tenth of the revenue needed,
is a gentle hint to congress that
means must still be provided 10
raise the other nine-tenths, namely,
three and a half billion dollars.
While the excess profits tax will
be repealed, the truth is that par
ticular provisions on the excess
revenue law has been automatic
ally repealed by business condi-
tions, and the only advantage in
actually taking it off the statute
books lies IN stimulating American
business enterprise which has
hitherto been restrained by the eX-
cess profits tax.
Thus it has been realized for
some time that in place of the ex-
cess profits tax, even if not repeal
ed. some better means of raising
money was necessary. No definite
plan has as yet been worked out.
The big fact, however, is that, in
stead of tax reduction, there will be
tax readjustment This means that
the burden on the taxpayers as
v hole Nwill remain the same, but
that the taxes will be differently
distributed.
Have to Settle.
The question of whether this dis
trfbution will fall less heavily On
the big corporations and more heaV-
lily on the smaller incomes is diff
ficult to settle, because congress
is political body. and the congress
sional elections are not so far away.
The Republicans would like to re-
peal the taxes on soft drinks and
upon transportation, while, at the
same time, increasing some Of the
taxes on business and production,
but they are confronted, on the one
hand, by the desire to relieve Tho
small taxpayer. and, on the other
hand, by tho knowledge that eco
nomic conditions cannot be much
or Unemployment dimln-
ished unless American business IS
free from the restraints of over
taxation.