The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-01
Let Is Have Done With Professional
Tax Systems.


All enterprise i'm this country and in
thc world If the monstrous and
irightful system of taxation adovcat-
Fed by Prof. Il. S. Adams, tho treas
ury expert, is adopted.
That Professor Adams and the gen
ticmen associated with him are mar
velously equipped in knowledge of the
history or taxation and in the prece-
dents established Is very true. We
would not question their extraordinary
knowledge, even though it has been
asserted that those responsible for
the system now in vogue might with
good grace hide their heads and not
have the temerity at this time
anoher trial.
Tho taxing specialists are c'o-
quent in argument, They are aderp,a
I'm splitting hairs, and none can COM
pare with them i'm tying Gordian
knots. Too often they have been
able To make the worse appear the
better cause, and more than once
they have muddled up sound business
men TO such an extent that reason
able and sensible tax programs be
came mere devices for testing mental
agility.
The reason Is fundamental. These
experts have been taught and are pro-
fcssionally employed TO formulate tax
programs from the treasury view
point. They look at every proposal
from .he viewpoint of the fish. They
do not consider how they can extract
money from the national pocket with
the least annoyance TO the patient;
they only consider how they can get
1t. They can take the. simplest sort Of
proposition and so wind il round and
round with threads OF theory that it
is unrecognizable.
modern system Of taxation would
he system formulated from the view
point OF the business men of the ma
ton. devised 10 yield the requisite
revenue. but with the least possible
disturbance of national prosperity.
Just as important as the getting of
thd money is the method OF getting
1t.
What DIR. ADAMS and his associa-
ates want is amendment Of the pres
ent system. 1t is the system they
are responsible for and it has been a
terrible calamity, but the most they
want to do is TO amend it here and
there. We say with all the emphasis
OF which they are capable that changes
and amendments will not do. The
whole theory must be tossed over
board and the new tax measure writ
ten along wholly different lines, along
lines that would be anathema to the
whole professional cult.
The existing tax system has driven
out of ordinary business enterprise
some is billions of wealth and forced
1t INTO tax-free, municipals. 1t Is
more profitable for large fortunes to
be invested in tax-free securities
yielding per cent than to be invest
ed In productive enterprises yielding
15 per cent. The LIQUID wealth of
the country. therefore. has been stead
ily transferred from productive en-
torprise into other securities. and
crtain stagnation has resulted. If
this method is continued. and the i'm
possible effort To reach huge incomes
under the sur.ax scheme Is perserv-
ed In, there can be but one result
must get rid OF theorists and theories
and get down to practical methods of
taxation.
With all due respect TO DIR. Adams.
we maintain that his statement about
the difficulty of administering a sales
tax is not supported by the evidence
and his testimony to the effect that
the sales tax has been disappoint-
ment I'm France does not harmonic
wkh other reports received i'm this
country. On the contrary. we make
the prediction that Canada, having
tried the sales tax, will turn TO 1t more
and more for future revenue needs,
and we venture the prophecy, in adj
dition, that not only will France cling
TO the sales tax as one of the life
saving devices OF the readjustment
period. but also that England, i'm her
next budget, will abandon the ex-
cess profits tax and turn to the sales
tax for needed relief.
IL is dcmonstrable that the mania
for speculation and the mad prof.
tcering OF the war period were both
nurtured by the excess-profit tax in
this and other countries. The whole
world is paying for the use of an in
defensible tax system, forced on ii by
professors. Nor is the world going 10
recover it's economic balance until
this calamtous tax system is elininat-
cd and utterly abandoned.
The financial condition of the treas
ury Is serious. The yield from the
sturtaXes and the excess profits taxes
may be comparatively insignificant for
the year 1920. They are failing as
producers. having failed previously in
every other way. There will be nee
essary during next year current
flow of tax receipts to compensate for
the money not coming in under the
present law. The only way in which
this current flow can be maintained
is by sales taX-not IL tax on each
purchase To- be paid by the purchaser
but tax on gross sale To he paid