Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-06-22
EXCESS PROFIT
TAX REPEAL is
NEED OF NATION
Banker Declares 1t Would
Stabilize Business if Elimi-
mated for 1921.

IF there ever was a reason for the
levying Of excess PROFITS tax against ror-
porations that reason has long since
ceased to exist, said Theodore S. Cady
Of the Federal tax department OF the
Fidelity National Bank and Trust Com
pany Of Kansas city, Mo, in his ad-
dress on THE Revenue Act Of 192l--
Some Provisions II should Contain at
today's session Of the twenty fifth annual
convention OF the Indiana Bankers As
sociation at the Claypool Hotel.
During the noon recess a meeting Of the
members Of the American Bankers As
sociation IN Indiana was held and elect
ed the following: Member Of the exc
cutlve council, Charles l.. Zigler, Of
South BEND: vice pes dent for the
American Bankers Association for In
diana. George Waldschmidt, f Fort
Wayne; member to serve on the A. B. A.
nominating committee at the Los An
geles convention, John c. Shirk, Of
Brookyille, with Andrew Smith, Of this
city, as alternate; vice presidents for
Indiana for Trust Company section, Il.
II. Miller, South Bend Savings Bank
section, Kent Andrews La Porte; state
Bank section, J. J. Kiser. Indianapolis,
and National Bank section, II. II. Buck
lin, Brazil.
Continuing, Mr.. Cady said: THAT part
OF the revenue &C tof 1918 which levies
an excess profits tax, should be repealed
entirely. This undoubtedly will be done
by Congress during the current year and
viii probably be made effective for the
entire year 1921. 7 his wculd eliminate
invested capital schedules, inadmissable
assets and also consolidated return re-
quirements.@-
He said that invested capital Is an
enigma that no one, including Treasury
Department officials, has ever been able
to solve, and is not a correct basis for
the assessment definitely OF taxes"
FAVORS FLAT
RATE OF TAN.
After touching upon some of the phases
of the present Revenue Act, he said that
in his opinion the new law should levy
fat rate of tax of 10 per cent to Is
per cent on net earnings of corporations.
Possibly the exemption of $1,000 should
be continued in the new law for the pro
lection Of corporations with small earn
ings.
There should be levied a normal tax
Of 4. 8 or s per cent against individuals
on net income in excess of an exemption
of So 600 or $4,000 and the present surtax
rates in the higher brackets should be
reduced so that the combined maximum
rates would not exceed so per cent tax.
with the exception of State, county
and municipal securities, there should not
be any such thing as tax exempt securi-
ties. Certainly, no new Federal issues of
such bonds should be fioated and 1t
would be desirable to eliminate the tax
exempt features of some of the Govern
ment issues now outstanding.
1.-THE Federal farm lean act is useful
in that it furnishes 2 source Of money
from which farm9Ds can advantageously
borrow This is, of course, desirable
But no one will argue that this could
not have been accomplished without the
issuance of exempt securities by the Fed
eral farm loan and joint stock land
banks.
There should b. eliminated from the
new revenue act Il small special taxes
which are bothersome to the department
and to the taxpayers and which produce
very little revenue in excess of the cost
of collection
Liberty bond exemptions should be
simplified and the present complicated
method Of arriving at the maximum ex
emption stricken out
''The Comm ssioner of Internal Revenue
should be relieved of the onerous duties
of enforcing the prohibition law.
This article is not In any wise an
argument for the adoption OF sales tax
The fiscal condition Of sur Government
is not In such condition that a drastic
(Continued on Page Two.)