Omaha daily bee., 1921-08-06
Can a Tax Be Made Painless2

iThe debate started by Secretary Melons
statements before the ways and means COM
riAtee is taking the expected course Mr.. Green
oEI Iowa ard Mr. Mondel Of Wyoming both dis
aztec with the secretary OF the treasury. 1t is
comforting to note that each of these gentle
incn is in favor of reducing taxation by the only
certain method that of cutting off expenditures.
Neither has specified where the outgo is to be
CHECKED save in a most general expression, that
ssSings must be made but each is sure that
sjaie features of the secretarys tax program
wM have to be modified.
kMr. Green wisely opposes further borrow
inH in peace times. Tax collections ought to
bGsmade to cover the legitimate expenses Of the
eos,ernment, i'll his view, but he is inclined to
the view that certain notable reductions may be
made in the forecast of expenditures. For ex-
ample, he thinks that the amount awarded the
railroads may be spread over two years, thus
relieving the Treasury to the extent OF more
th4h quarter OF billion of dollars during the
prEsent fiscal year. Other economies are to be
effected in the essened cost of the army, the
n3Sy and the shipping board, which furnished
thx greater items in the outlay for July Dis
chsrge OF $4,000 soldiers ordered by congress-
aided greatly to the army expense bill, and the
nny is being similarly touched. Savings here
viii be reflected in the August balance sheet
Al end must come to the drain of the Shipping
BSard on the exchequer. Here are some places
where the government will save money.
rHeavier levies on incomes, both corporation
aiia private, and on gifts and bequests are pro-
posed by Mr. Green to make up the loss that
isEfo follow removal of the excess profits tax.
He does not countenance an increase in postage
oEthe continuance of the nuisance" taxes Mr..
Ntsndell declares in favor of general reduction
I'M sstaxation, ignoring Mr. Melons warning that
over four billions are needed to meet the gov
erHment's requirements for the year. and that
tfiree and one-haf billions OF this amount must
besraised by internal revenue
.sThe alternative to continued high rate OF
taSation is further borrowing To add another
billion to the existing debt will have the an
ticspated effect of further decreasing the value
ofgovernment securities, thing that it is desir-
ab3e to avoid The actual cost of running the
gtnernment for the year ending June 80, 1920,
WIS $5940 997, ,55204, land for year ending June So
1921, was $5008, ,7SS26l,60, an apparent saving
ofsiSo32, ,2O9, ,29O44 OF this decrease, however,
$sHO,OO0,0OO is in reduction of War department
exbendtures, $sooO000O in the Navy, and
s4pO, 10000 in the Shipping Board, increases in
,ther departments accounting for the difference
Transactions in Treasury certificates, or short
time borrowing were decreased by seven billion
dollars in the year. These figures indicate
real improvement in Treasury condition, and
vi they do not hold great promise of i'm
MEDIATE reduction of taxes to any considerable
eSaent.
yThe question to be settled is what form the
taS will take 1t may be made painless, but it
Will be presented in some unacceptable form,
fof the federal credit can be maintained only
though the ability of the government to meet
itx obligations, and great saving can be made
biz removing the necessity of further bor-
rfMinC