New-York tribune., 1921-08-21
House Passes
Tax Revision
By 274 to l25
CONTINUED from page ons)

arc Hot 1ullv explained by an eXamln-
alton of the rates. It may be recalled
that Secretary Houston recommended
against tax reductions. His program
contemplating a shifting of taxes and
the heading of one paragraph in his
report was tax revision without tax
reduction More recently opinions
have been expressed that tax reduc-
tions could not be safely ACCOMPLISHED
at this time. The problem which con-
fronted the committee in the prepara
tion Of the bill was the seeking out of
means of reducing taxes The COM
mittcc felt that the country demanded
not a shifting of tax burdens but tax
relief, relief from the payment of the
amount of taxes being exacted from
the people under existing law.
Bill Based on Economy
"This bill is predicatcd on a policv
Of strictest economy. 1t is predicated
on promises by various departmental
heads to reduce expenditures. These
pledges were made, some of them in
the presence of the President. The
committee held number Of confer
ences and the chief subject was econ
omy. The bill will succeed if the pro
gram Of economy is strictly enforced
and this must be done.
"a very Objectionable tax, from the
business standpoint and the standpoint
of the cost Of living and the standpoint
of the revival of the railroads. is the
revenue approximating 1852 ,oOo, 900 a
year. The bill provides for the repeal
of this tax. The effect of the repeal
cannot be other than beneficial. The
tax on proprietary medicines and
toilet articles has been repealed as
has the tax on soda fountains.
"Thc list Of changes in rates is a
long one and when all the proposed
rates are in effect the reduction in
revenue will amount to SS18,OO0,0 600
AS the bill was reported to the House
ing to 79O,0O0OO0 Amendments to
the bill on the floor Of the House have
added S2S 900 900 to this sum.
'With few exceptions the retail sales
taxes have been repealed. The excise
taxes retained for the most part are
placed upon the manufacturer. Under
the new bill the number of tax returns
will be very greatly reduced. The in
come tax exemptions for married peo-
pie and the added exemption for de-
pendents will be welcome.
with a view to simplifying tax
forms the bill provides for the crca-
ton Of a tax board on which The tax
payers will be represented Several
changes have been made in the law to
clear up adminstra tive difficulties and
to simplify the tax forms, conspicu-
GUS one being the amendment regard
ing Liberty bond exemptions.
"ln administering the existing law
many loopholes have been discovered
by the Treasury Department, and cor
rectlVe recommendation by the depart
lnent are incorporated in the bill passed
by the House to-day.
"The spirit of cooperation which was
evidenced By the President, Cabinet Off
GERS and other government officials in
securing pledges of economy was most
gratifying. 1t has made tax reduction
possible. The bill is good one, end it
would seem that those who opposed its
passage will have difficulty in explain
ing their mot;cs."
Majority floor leader Mondell, who
shared in the summing up with Mr.
Fordney, declared the passage OF the
bill brought about the fulhlment by the
House Of its pledge to reduce the war
taxation. He scored the "almost unbe-
licvablc prohigacy of expenditure under
the Democratic Administration" dur
ing the war, which left a legacy of
100000 100000 of war debt.
Holds Critics Unjustified
"In situation and condition of busi.
ness stagnation; of financial and in
dustrial depression following the war;
in the presence Of an appalling over
hang of war costs, We have been called
upon TO revise the tax laws" said he.
"While there might be some little criti-
cisn because we have not acted sooner
there can be no we'll founded, intclli-
gent criticism Of the solution reached
in the lifting Of the war burdens of
taxation in a sum in excess of $780,
100000 per aLlum.
ON view CT the continued cnormo Gus
demands upon the Treasury in pay
ment Of expenditures inherited from
the war period and war conditions, it
has been impossible of course to re-
store the Federal tax lcvcs to the point
to which they should be ultimately re-
stored when normal conditions have
been reached. But the effort has been,
as it should have been, to relieve first
from those burdens that are clearly
recognized as war and emergency bur
dens, from those levies most annoying,
vexatous and troublesome, and from
those classes of taxes which seriously
dcrangc and interfere with the norma |
flow Of business; which hamper re-
strict and discourage productive enter
prizes which in time of peace are, in
their practical effect, in many cases,
not only inequitablc but absolutely
conGscatory.
Platform Pledges Redeemed
"Thc features of the bill which have
been most discussed, as we'll as those
many admirable features which have
not figured largely in the debate, are
not only approved and commended from
the viewpoint Of justice and equity in
tax reductions and adjustments, but
they carry out with remarkable idel-
ity the pledges Of the Republican plat
form. the declarations of the party
candidates, and the implied, if not
definitely expressed, promises made
from almost every platform during the
campaign.
"Not only arc the provisions of the
bill before us in harmony with sound
principles of revision Of wartime
levies, in harmony with Republican plat
form campaign promises and pledges
but they are, curlously enough, in har-
mony with the recommendations made
in the Democratic platform and by
practically every Democratic leader
whose views on Enances and taxation
receive the respectful attention of the
American people. The recommendation