The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-01-19
By LESLIE NJ. SHAW.


Copyright, 1921, by United Press.)
Washington, Jan. 19. Taxes,
chargeable to overhead expense,
necessarily add to the. cost of pro-
ductiOn, and unless some equiva-
lent benefit results, other than the
revenue Itself. they might better
be assessed against the consumer
in the first instance. If this be
correct in principle, then excess
profits taxes should be abolished.
Excess profits taxes have indi-
rectly if not directly added more to
the cost Of living than any other
single factor Not only are they
pyramided and passed on to the
consumer, but the ease with which
this is accomplished naturally and
inevitably invites profiteering.
There is no answer to the logic
Of consumption tax, unpopular
though it may seem. until under
stood. Suppose the cost Of pro-
duction and distribution of shoes
had been kept at their minimum
and tax of even per cent i'm
posed upon the final sale-and no
one even thinks of one-quarter of
l per cent-our $40 shoes would
nave been kept under $12. and the
retailer. having escaped the excess
pYofits taxes, would be disposed to
bear some slight portion of the con-
sumption tax Of $l.20. Like saving
to the consumer and the same In
crease In, public revenue would re-
suit from nearly everything we
produce and consume.
A tax on each intermediate sale
also results in pyramiding the bur-
den on the consumer only.
Incomes afford the best yard
stick to measure the relative ben
! efits of q stable government and in
come taxes therefore are the mos,
logical and equitable of all.
Favors Repeal.
Being protectionist, l hope to
see the present tariff law not
amended but repealed, and in its
place a tariff law designed to pro-
tect every American industry, lin.
iting its revenue features to luxury
and nOn-competitive products.
The tariff issue resolves itself
into the naked question of whether
the advantage in American markets
on competitive products shall be
preserved for American producers
or sold to foreigners for revenue.
While the emergency. tariff or
agricultural products would helT
| save the farmer temporarily, moth.
ing less than q general protective
tariff law, insuring employment te
every American, will put agricul.
ture again upon a profitable basis
America could prosper though
all the rest of the world were blot.
ted out. She could prosper though
we lost every dollar of interest anG
| principal owed US by foreign gov.
! ernments. The only thing we can.
not do and prosper is to precipi
tate period Of unemployment
such as must follow large importa
tions of what American labor ha.
hitherto produced. l stand ready
to sign a contract to deliver whea
! at any railway point between tn.
Mississippi and the Rockies at 81
q bushel six months after 10000,
900 Americans are out of employ
! ment. I have seen it estimated
that there are 100000 out at thil
time. -
l would not refund any Of tn,
present debt at this time. As sool
as our people are forced to sci
what they are now carrying OF
bank cedits, and business require
ments have approached their min
imum. interest rates will also tum
BILE and it will not be surprisin,
il the entire debt Of the govern
ment can then be foated at not t,
exceed per cent.
! Let US hope that the American
congress will legislate solely TO
Americans, for in that way We viii
best assist the world.