The New York herald., 1921-08-05

Treasury make necessary the considera-
ton OF additional taxes. These taxes
are. of course, not suggested as desira-
ble in themselves, but in my opinion
they are less Objectionable than some
other new or additional taxes whicn
have been proposed.
"(a) Increase the documentary stamp
taxes by approximately doubling the
present rates 50 as to Increase the rev.
enue from this source by approximately
$30,000,000 for the fiscal year 1922 and
S70.000,000 for the fiscal year 1923.
"(b) The proposed stamp tax of two
cents on each check (payable on sight
or on demand) would yield, 1t is believed.
about s45, 100000 year. The estimated
proceeds of this tax have not peen in
cluded In the totals of table IL.
"(c) / suggest also as a convenient
method of taxation an increase of one
cent in the rate Of postage on first class
mail matter, to three cents per ounce or
fraction thereof on all except drop let
ters and to two cents per ounce or frac-
ton thereof on postal cards. Such a tax
would yields, IL is estimated, about $72,-
900, 900 a year
"(d) An annual federal license tax
upon motor vehicles. averaging about
$40 per vehicle. and to be graded accord
ing 20 power. would yield approximately
a
the first year (1922) of its imposition.
The estimated proceeds Of this tax are
included in table IL.
Would Raise on Tobacco.
"(e) An increase in the tax on cigar
cites from So to SIS per 1000 and slight
increase. in tine other taxes on tobacco
products would yield additional revenue
/ of S25.0qg, 900 in the fiscal year 1922
/ e.I-. z f.. tI,n
fiscal year 1928.
THE foregoing recommendations take
into account probable reductions in cur
rent expenditures for the fiscal year
1923. when, for example. 1t Is expected
| that there will be relatively small pay
ments to maze to the railroads as
against estimated payments in the fiscal
year 1929 of s5I5, 900. 900. Against these
| reductions. however, 1t is expected that
| there will be sh-inkages in receipts. The
suggestion that the transportation tax
lie repealed. effective in part January /.
| 922, and In its entirety January !, 1928,
would alone involve a loss Of revenue
| of about $500. 100000 for full year.
1T Is also necessary to bear in mind
| that the estimated income and profits
| tax receipts for the fiscal year 1922 in
clude two quarterly instalments OF in
come and profits taxes based on the
/ y
that a substantial shrinkage below the
| 1922 figures for these receipts is to be
| expected during the fiscal year 1923 as
d result OF the Shrinkage in incomes and
the depression in business in 1921. In
| the fiscal year 1928. moreover. the Vic
| tory Liberty loan and the 1918 series of
war savings certificates become due
With these extraordinary maturities
| of the public debt to meet ii IS inn
/ a rt "a Traa
margin Of current revenue over current
| expenditure for the year in order that
the vast refundlng operations which VIII
| have to be aftled on during the year
| In any event may not be complicated
or embarrassed by additional borrow
| ings to meet current expenditures which
ought to be providec for out Of current
| revenues"
Representative Mondell or Wyoming,
the Republican leader. declared in a
formal statement tnat II was entirely
practical in his opinion Ito reduce the
total tax levy by at least $500. 600. 900
and still meet all proper, necessary and
essential expenses of the Government"
'~rhe excess profits tax and the
higher income surtaxes should be re-
pealed and nothing substituted for
them" he said. THE so-called nuisance
taxes and the transportation tax. in
Wnole OF IN part, Snould ne repealed
and some simple, easily understood tax,
as, for instance, the proposed per cent
| fiat Increase on corporation taxes,
enacted to provide funds lost by the re-
peal OF these last mentioned taxes
Possibly some other one form of ad-
ditional tax may be necessary, but /
doubt II. In any event. we should not,
in my opinion. adopt the stamp. the bank
check or other taxes of that character
that have been suggested. and 7 doubt
either the necessity or the advisability
OF the automobile tax.
People are expecting q real reduc-
tion--a lifting and not wholly shifting
OF the burden. They are entitled to ii.
and their reasonable expectations can
be met and still fulfll al the necessary
and legitimate obligations Of the Govern
ment."