The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1921-02-28
LARGE REVENUE
LOSSES FOR 1921.

Washington. - 1.-THE same forces
that Debated credits have debated the
revenue from income taxes, and the
United States Treasury will suffer ac-
cordingly," declares the Republican
Publicity Association From every
section of the country, from every
city, village and countryside, comes
the report of tremendous reductions in
income during the year 1920, indicat-
ing beyond possibility Of doubt that
the income tax will be a relatively
small producer of revenue during
1921. In a multitude of instances the
income reports of large merchants
will show net losses instead of prifts,
due to the depreciation in values of
stocks on hand. Few merchants will
show considerable profits when these
deductions are made. Scarcely
farmer Of any sort cotton grower,
grain grower, stockkman or fruit pro-
ducer will report taxable income for
the year 1920. The inevitable conse-
quence will be an enormous reduc-
ton in the revenue from the income
tax. The excess profits tax feature of
the law will be practically inopera-
tive.
These are facts patent to all who
have observed the trend of events.
There are several conclusions to be
made from the facts: first, that there
must be every possible reduction in
public expenditures; second, that
some means must be found, if posi-
BILE, to make up in part for the loss
of revenue from the income tax; third,
that governmental policies must be
such as to encourage and hasten re-
vival of industry and enterprise.
I'm all three of these particulars,
the Democratic administration has
been found wanting. The Wilson re-
gime has not only spent money need
lessly and lavishly, but has demanded
appropriations far in excess of the
amounts Congress has seen fit to
grant. If the Democratic administra-
ton had been given all ii asked, the
public debt would now be two and a
half billions greater than it is, with
still greater difficulty in accomplish
in productions in the future The
spending habit is hard to cure.
"The Wilson administration failed,
also, to find any plan of revenue pro-
duction that would make up for the
poss of income tax naturally and GER
tainly following the deflation pro-
gram which the Federal Reserve
Board put into execution. 1t is true
that the administration acknowledged
the need for new sources of revenue,
but 1t had no definite recommends
tons to makek as to a remedy for the
evils it had brough upon the country.
"The whole tendency of the ilson
administration has ben to repress en-
terprise, initiate prices, add to the cost
of living, encourage profiteering and
increase the public debt. 1t has played
hand-in-glave with those who would
retard production and has coddled the
bolshevid element of our population.
All this must be changed, and the diff
ficult task awaits the republican ad-
ministration which will come into full
control of the government on March
4. There must be a reduction Of gov
eminent expenditures in order that
the recenue may equal the expenses.
There must be encouragement Of in
dustry and thrift, hard work simple
living, and USEFUL investment of saw
ings.
ITO all this the Republicans are
pledged, and theer is confidence that
Congress and the President will CO.
operate in the effort to make the nder-
taking a success"