New-York tribune., 1921-03-25
Good Says High
Taxes Stifle
II. S. Industry
Appropriations Committee
Head Would Repeal Ex-
cess Profits Law and Re-
finance Bond Obligations
Urges New Economies
Suggests $6.4O Liquor Levy,
Increase ON Tobacco and
Assessment on Motor Cars
r,.,,n The rrisnne,s wosnsmotyn aur.o,

Frs.n The Tribune's Woshincto~ Rureae
WASHINGTON, March 24.--American
indutry will be stifed If there is a
continuation of heavy taxes, according
to : statement by Chairman James W.
GcJd, of the House Appropriations
Committee, appearing to-day in The
Nations Business, the publication of
the Chamber of Commerce of the
United States.
Chairman Good expresses the belief
Congress can repeal the excess profits
tax and at the same time avoid impos-
ing an equally heavy substitute levy by
cutting government expenditures and
by refinancing government obligations
as they fall due. He says taxes have
become such load on industry that
they are harmful
we do not need the revenue brought
in by the excess profits tax if we will
reduce our appropriations" Mr.. Good
says. THE saving that is necessary
can be effected by system of economy
and by national financing of temporary
loans.
"A start in the trimming of govern
ment expenditures can be made by
changing the present policy of retiring
government oDtlgatlonS.
Notwithstanding the fact that last
yenr the governments sinking fund
produced about quarter OF billion
dollars, the Secretary of the Treasury
retired Liberty bonds and Victory
notes to the extent of almost billion
dollars. ! think that was very short
sighted policy.
FINDS Country Burdened
$! believe our taxes have become
such load upon industry that they
are harmful when viewed from the
standpoint of national bonds and that
these maturing obligations can best be
met oy borrowing the money with
which to pay them.
There will be collected during the
next fiscal year from all sources nrob-
ably little more than $4,000 900 900.
which VIII run somewhere in the neigh
borhood of $400,000 900 more than en-
pcnoltures. This contemplates abolish
ment of the excess profits tax, with no
direct substitute provided. The gov
ernments receipts last year. broadly
speaking came from the following
sources:
D,s lasome excess profit ;a... ss2sS3s5ss s5
miscellaneous taxes l442 942 81 Xe
niisceilaneous receipts 49,. ssl.72s.S3s.3S
fos'si revenues ....-.-.. 437,15o, ,212. 80
Total :7.14l, ,6S4 ,s49. go
The $4,000, 100000 necessary to raise
next year could be derived somewhat
as follows:
customs -. .......... $500. 900 ,ooo
income corporation Taxes. 1900. 900, coo
- =, s1isceiianeous taxes ..-...... 1850, 900, 600
allsce iianeous receipts ....... 500 600 OOC
POSTAL revenue ........... 500 0o0 900
In this summary / leave out of con-
sideration altogether all interest on
foreign debts, amounting to more than
half billion dollars.
1T seems to me that we ought to re-
peal the tax on transportation.
Would Raise Liquor Tax
"Last year there was taken from
bonded warehouses almost 10000 ,OOC
gallons of spirits. These spirits paid
tax of only 1920 gallon. We ought
to restore the tax Of $6.40 gallon.
1--WE have also a comparatively light
tax on tobaccos. If we levied the same
tax on this class of commodity that is
levied by Great Britain it would bring
into the Treasury more than $500, ,OOO,-
600 year.
again, we have in the United States
more than 100000 passenger carrying
automobiles. Practically every one is
Z luxury, and if we placed tax upon
passenger carrying vehicles and made
the amount of the tax dependent upon
the horsepower, a reasonable tax, we
could easily collect S20O,000,0O0.
ut is estimated that next year the
postal receipts will bring in $500,000,-
900 and that the miscellaneous receipts
will yield $500, 100000 more.
"In addition to eliminating excess
profits taxes, l believe that there is an
opportunity to reduce surtaxes on in
comes. | suggest very small addi-
tional tax on corporations to help take
care of this