The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-04
THE TAXATION PROGRAM.


agree with the secretary and yet not
improve greatly on his suggestions.
Always there is apparent on the
part of the trainers of tax legislation
a disposition to convince the majority
OF the people that they are not being
taxed; that the rich are being made
to bear the burden of supporting the
government. And the people seem to
like to be made to believe that they
are excaping taxes while the rich
must pay. when a little thought
should convince them the rich are do
ing nothing OF the sort. Nobody goes
out of business on account of hign
taxes.
If man who has been paying $780,
900 in taxes find himself called upoa
to pay a million, he promptly pro-
ceeds to collect the amount from
those with whom he does business.
And he collects It too. If the ulti-
mate consumer. who pays all the
he must pay that knowledge might
prove more satisfactory than the ex-
listing uncertainty.
The most convincing testimony
showing the attitude of the best bust
ness minds in the country toward tax
alton, says the Bache Review, is fur
nished thru the result of the United
States Chamber of Commences refer
endum, just announced. BY this
countrywide vote, the chamber is COM
mitted to the sales tax as a substitute
for all the obnoxious taxes on busi-
ness, which have been hectoring and
destroying industry for four years.
More than 500 business organizations
voted in the referendum just complet-
ed. The various organizations are en-
titled to from one to ten votes. based
on their membership strength.
In the brief press notice thus far
sent out. the result of the balloting
shows shat this vast body OF represen-
tative business men decisively prefer
the general turnover tax, and the no.
tice says of the referendum which has
just closed, that a Conclusion to dis
cussion among the chambers MEM
bership on sales taxes has now been
reached, with an unmistakable decla-
ration for a sales tax, and with desig-
nation of the general turnover tax as
the type that is widely favored" This
may be considered the most signifi-
cant expression that has yet come
from the country on this question, and
it comes in clear and unequivocal Ian
guage.
It is gratifying to note, continues
the Review, that the officials of the
United States Chamber at Washing
ton. under the impelling force of this
mandate from the country's business
world, were constrained promptly TO
present these findings fully before the
committee, in the tax revision hear
ings. This was done notwithstanding
Chairman Fordneys rather intole--
ant announcement that arguments for
the sales tax would not be heard.
Congress- after being spurred on by
President Harding. is now taking up
the taxation question thru the house
ways and means committee. The
newspapers have expressed consider
able satisfaction that this action was
to be taken, but the tax program is
apparently all cut and dried,
The time OF the hearings is so linn
tied that it is apparently not even ex-
pected to get any benefit from them.
The minds of the leaders are made up.
AS outlined, the program is to abol-
ish the excess profits tax, to reduce
the surtaxes on income to around 20
to 40 per cent, to place a tax of Is per
cent on the net earnings of corpora
tions, and to eliminate a number of
the luxury, or nuisance, taxes.
The Reviews attitude toward this
program is expressed as follows:
This is out of the frying pan into
the fire. It will afford no relief II
carried out, it will not release business
from the oppression of taxation. Sur
taxes of 40 per cent, or even of 20
per cent, will fail to bring money out
of hiding or to keep it from going into
hiding. No income-tax Garner will be
tempted to risk his funds for invest
ment where the chances are open for
the surtaxes to be increased some time,
and where the annoyance and COM
plexity of the yearly statements make
expert advice almost indispensable.
The added tax on corporations is
simply a further continuation of the
expressions of the excess profits taxes
against business, discoura ging enter
prise as before. This substitute will
also tend to keep up prices unduly.
If a concern has to provide for piling
IS per cent on its earnings as a tax, it
will be apt to add Is per cent or more
to the profit on each item, and this,
pyramided, will increase the cost to
the final consumer probably fully as
much as the excess profits tax did in
it's most rampant period.
II the great object of tax revision is
to encourage business, the present
program will not do it.