The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-09-30
TAXAT|0NC CUTS
TEMPORARY, SAY
HOUSE LEADERS
Penrose and Smoot Also See
Only Passing Relief in
Present Revision.
BY A. O. HAYWARD,
International News Service.

IntcruntiOnni NoWe bcrviCe.
Taxation systems and plans are the
chief topic of general discussion in
Congress these days.
The whole subject Of taxation has
been thrown open by the admissions
Of Senators Penrose and Smoot that
the present tax revision is only tempo
rary. being rushed now for the pur.
pose Of relieving the country from
some of the more obnoxious war taxes
and freeing business from the worst
Of its sitting tax burdens. They an
nounce that soon general revision
Of the taxation system OF the coun-
try must be undertaken and q more
scientific plan. of taxation substituted
for the catch-revenue scheme now in
operation.
All tax theorists Of House and Sen.
ate agree that there shall be no aban-
donment of the general plan OF tmpos-
ing taxes on incomes and on inherf-
tances,g These taxes seem certain to
stay, but the systems under which
they shall be imposed and the rates
will be the subject for debate in Con-
gress until a plan better than that
now in operation Is adopted.
Representatives Of new schools OF
thought in tax matters are arising In
Congress. For the most part they
present old systems of taxation clothed
in new details. Senator Smoot and
Congressman Bacharach Of New Jer-
sey, are urging substitution Of a gen
eral sales tax for the multitude Of
small taxes now levied. They claim
that q l per cent sales tax, avoiding
many OF the turnovers In sales, will
produce $1,000. 100000. The tax can
be adjusted easily to produce neces.
sary revenue.
To Work Out New System.
Congressman Oscar f. Keller of
Minnesota leading q number Of West
ern. Congressman, is pressing for
land values tax. At small rate, but
easily adjustable, 1t can be made to
yield. he claims, sufficient revenues
to meet the Government needs, and
worrisome indiscriminate taxation can
be done away with.
Older members of Congress, who
have seen many changes in tax sys-
TENS declare that, with the changing
sentiment in the country as to taxa
ton methods, there will come some
combination scheme of a sales tax and
a land value tax that will wipe out
the present system Of hodge-podge
taxes and base a Federal internal rev.
enue tax system on incomes. inherit
ances, general sales and land values.
. The sales tax has grown In Con-
gressional favor rapidly during recent
months. 1t Is held in allegiance now
for imposition In the event a soldier
cash bonus, with its 1880, o00. 900 de-
mands, is authorized by Congress at
the next session. Once II Ia adopted
as q part of the tax system It will re-
main permanently, Is the general pre-
diction. After payment Of the soldier
bonus its revenues will be used for or
binary expenses of the Government.
Seek to Force Out Vast Holders.
The land values tax has not so many
advocates at the present time, but It
In coming more and more to the front
in all tax discussions, especially when
Western men participate. They are
advocating 1t for the double purpose
Of freeing themselves from the many
small taxes and to force monopolistic
land owners to pay huge taxes, or to
throw their holdings on the market
Vast estates are held In idleness, they
contend, by the great lumber COM
panies, by the oil and other mining
and by the hydro-electric
companies. all waiting for
future development Of the country for
by the owners.
These vast tracts Of unimproved
lands are taxed but little by the States,
and this has aroused resentment by
the State Taxpayers, 1t is said, who
claim that they must pay the taxes
on their developments for the bene-
fit Of the rich landowners, who can
afford to wait until improvements
up to their property, when
they will reap a wonderful harvest on
their investment. Stiff Federal taxes
on such land values will have the ef-
feet, II is believed, Of forcing some
Of these vast holdings from their own
ers and, through their development in
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