Newark post., 1921-08-24
WHAT WILL SENATE.
FINANCE COMMITTEE
DO WITH TAX BILL?
House Claims Reduction of
War Taxes by $8l8,0O0,0 900

One of the chief duties which con-
fronted the new administration and
the new Congress at Washington this
year was the revision Of the taxation
laws passed by the Wilson admins
tration. Those laws which are still
in operation were, in large part, pass
ed to meet the emergency of the war
and as war taxation are particularly
burdensome when carried on into the
years of peace. The difficulty of
proper revision lies in the fact that
while the war debts, war losses, and
the comparatively unchanged organ
ization and responsibilities of the
government demand revenues almost
as large as those of the past few
years, the people expect and demand
a radical cut in taxation. The demand
of the people is based on two firmly
grasped convictions-that peace is
cheaper than war, and that there has
been useless waste and extravaganza
not only in the carrying out of war
measures but in the operation OF the
regular departments of the govern
ment.
According to law, bills for raising
revenue must originate in the House
of Representatives. AS soon as the
emergency legislation and the tariff
bill were off the calendar of the
House, the Ways and Means Commit
tee, of which Representative Ford
ney is the chairman, undertook the
preparation of a tax bill. The ques-
ton of meeting the problem just men,
toned has been under discussion and
study by the real workers in Congress
since April. 1t was evident from the
first that reducing the taxes was
complicated matter. Business depres-
sion made revenues smaller under the
existing laws. Fresh losses and de-
ficits from the past few years were
cropping up at every turn. There was
hope in this dilemma that saving
might be effected by business methods
of appropriations and expenditure.
For this purpose the Budget Law was
passed and General Dawes immedi-
ately appointed as Director. The next
step was the reorganization If possl-
BILE on a more economical basis OF ex-
listing departments, hence the cut IN
the Army and Navy appropriations
and the demand for still further cuts.
There was an opportunity by follow
ing the traditional tariff policy of the
Republican party to offset some re-
@duction in taxes by increasing the
tariff. This was done by the House
when it passed the "Fordney Tariff
Bill" in July.
When the Ways and Means Com
mittee finally met to draw a revised
taxation and revenue bill they had
before them the present laws with
their return in revenue, the estimates
of Secretary of the Treasury, Mellon
and Director Dawes of the Budget, as
to the revenue and expenditures nee
essary to meet all government obliga
tions next year and in 1928. The!
had the estimated increase in th'
tariff returns, and the various IN
creases and decreases Of expenditure
likely to occur as a result OF chang
ing conditions in the next two years
They had especially the demands O
the business interests and the peopl
in general that they be relieved OF al
appreciable amount of the present ta'
burden. The tax bill presented to tn
House, amended, and finally passe'
August goth, is the answer of ou
Representatives in Congress to tn
tax problem, by vote of 274 to 10.
The bill, with all the reports AM
estimates or revenue and expenditure
and much other material is nov
transferred to the table of the Senat
Finance Committee. On this sam
table is the House Tariff bill, in tn
process of study and amendment
With the Senate Finance Committe
now rests the whole policy and strue
ture of government finance, revenu
and expenditure. The country ha
considerable confidence in the work Q
this committee. Its hearings and de
liberations will be followed wit
interest.