The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-08-03
TAXES EASILY
HOLD CENTER OF
STAGE JUST NOW
Plans of Mellon VIII
Most Likely Be
Changed.
BY DAVID LAWRENCE.
Especial to The Argus.)

1 <1Aes e1ACo-
biggest political and economic issue
before the country-at last holds
the center of the stage here. After
five months of study, the Harding
administration has finally laid upon
the legislative tables of congress
the first concrete suggestions as to
how the money shall be raised to
run the government and meet past
obligations.
Anyone who submits a tax pro-
gram first must bear the brunt OF
criticism but Secretary Mellon has
not suggested a rigid scheme
Should congress devise better way
to raise $4,600,0 100000 which is the
amount of the budget, MIR. Mellon
would be the last to object. Simi-
larly, the Republican leaders who
know that the future of the party
at the next congressional elections
a year hence depends upon the kind
of taxes imposed are now put upon
their mettle to frame a better tax
| program if they can.
Democratic members of the ways
and means committee are naturally
opposed to the suggestions made by
the Republican secretary of the
treasury. THE new program" says
Representative John Garner of
! Texas, lis nothing more nor less
than transfer of the burder from
those best able to pay to the masses
least able to pay"
To support that view, Mr.. Gar
| hot rry65 ol
Ion has suggested that taxes on
soda water and ice cream be re-
pealed, nothing is said about car
donated beverages and bottled soda
waters, the manufacturers of which
will not be able in his judgment TO
compete with soda fountains if taxes
.are repealed. He adds that there
are go or 20 other nuisance" taxes
which the treasury does not offer
to repeal, such as taxes on amuse-
ments, moving picture shows, taxes
on medicines, etc. Mr.. GarneI de-
clareS these are the taxes which
the masses must pay and yet the
treasury would repeal the high sur
taxes on incomes above 100000.
Little objection is expressed to
the taxes on tobacco manufacture
on the theory that the tax would be
absorbed at the source without ex-
ira cost to consumers. And while
the extra cent of postage looks like
an easy way to raise a lot of money
members of Congress feel that every
time the masses write letters they
will remember that taxes went uE
/. instead of down under the Republi-
can administration. 1t is political
ly a bad tax though economically
sound.
The suggestion that every auto
mobile owner be taxed SO may not
: prove popular but President Hard
ing himself stands back of that pro-
posal and drives home the argu-
ment for it by saying that if the
people who drive cars want the gov
ernment to keep on aiding the
states by paying half the cost OF
building roads they ought not OBJ
ject to paying something directly
for that purpose.
AS for the taxes on bank checks
this probably will be least felt o!
all for the tax will be absorbed
mostly by business concerns, as rel
atively speaking the masses do moi
use many bank checks.
Campaign Pledge.
The repeal of the excess profits
taxes is a campaign pledge. From
the start it has been doomed. L
isn't that the excess profits ta1
brings in much money-but that 1t:
effect on busines incentive has beer
almost disastrous In place of the
excess profits tax business mus
stand an increae of five per cent or
the normal corporation income
which have been taxed 10 per cen
heretofore. This is a much smaller
increase than business expected Il
pay for earlier in the year it wa:
feared the corporation tax woulC
have to go as high as 20 or 25 PEI
, Fcent to make up for the repeal o.
the excess profit taxes.
: Will Be Welcome.
Reduction of the transportation
taxes by so per cent is going to b,
a welcome tax Even the Demo
Gratis will find it difficult to oppos'
that though they will try, of course
: to embarrass their opponents by of
fering amendments to repeal al
the transportation taxes. The D
per cent reduction in transporta
ton taxes will not, however, go t
the root of the popular complain
about railroad rates but that
something which is up to the rail-
roads and not congress. The driv'
for lower freight and passenge
rates has just begun and tn
chances are that when a business
revival is on in earnest the rall
roads themselves will see the ne
cessity of making voluntary reduc
tions to stimulate more business
Nevertheless the cut OF so per cen
of government taxes on transpor
tation will help the railroads IL
postponing as long as possible th'
raduction OF their rates. 1t mean!