Evening star., 1921-07-24
Rate by Mail-Payable in Advance.
Maryland and Virginia.
All Other States,
Tax Revision.

House committee on ways and means
is tackling the problem Of tax revision,
which the country at large has re-
garded as of more Importance than
the revision Of the customs schedule.
Hard as is tariff revision in any case.
that of tax revision is much more diff
ficult. And it is especially difficult at
this time, when there is an expecta.
tion on the part Of the public of a re-
duction Of the tax. burden. 1t would
appear. however. from the point Of
view of the Treasury. that little re-
duction is possible. that the govern
ment must have from direct tax
sources practically as much money as
it obtains from those sources at pres
ent. II reduction cannot be accom-
plished can the burden be differently
distributed, to cause it to rest less
heavily upon those less able to bear
it? Thus revision may be merely re-
adjustment, not reduction.
Virtually only one assurance can be
given regarding the ways and means
Of tax change and that is that the
present excess profits tax will prob
ably be eliminated. To this tax Is at
tributed, rightly or wrongly, much Of
the economic trouble with which the
country now suffers. To it are ascrib-
ed in large degree the high prices that
still prevail. 1t is regarded by the
iD1a ~,
that it forms the basis through capital
computation Of excess prices. H .v-
ever that may be. the demand has "ss.n
expressed unmistakably for the s>-ln-
donment Of this form Of excise ana the
substitution of another form rsa.ch
will yield as much revenue without
breeding high prices and thus bearing
doubly upon the consumer.
Income tax adjustments may be
possible without lessening the yield.
But there is no prospect of the re-
mission Of income taxes from the low
er end Of the income line upon which
they now bear. Whether in this re-
vision there will be tightening of the
load on the lower end and an increase
at the upper. or a sharper pitch Of ad-
vance through the middle. is, Of course,
merely matter Of speculation, as ap-
parently these problems have not been
; worked out yet by the committee.
Much actuarial work has BEEN done
during the past few months in testing
out probable yields of revenue from
various forms of taxes. The House
committee has no lack Of information
and statistics It is abundantly sup
piled with advice. 1t is, as always in
the case of fiscal legislation. subjected
to pressure of influence by those who
wish to pay less. by interests that
seek relief through revision at the ex-
pense, of course, Of other interests.
The position Of the committee in this
situation. therefore, is that of court
of equity seeking the fairest distribu-
tion Of the load of taxation.
Speed is an element in this matter.
1t is urgently desirable that the tax
bill be pushed as rapidly as the re-
quirements of sound legislation will
permit. For business is at present in
state of suspense. awaiting the set
Element of the tax basis. Not until
the last stage Of the legislation is
passed can business know how to ad-
just, how to buy. how to manufacture
and how to sell. Whether the re-
vision is up or down as pertains to a
particular industry. uncertainty COM
pels comparative halt in production
and vending. 1t would have been bet
ter. indeed; had tax revision preceded
tariff revision. But that stage Of the
case is passed, and, whatever may be
the political effect Of the republican
party's choice Of precedence in Con-
gress, the urgent question now is to
g.: get the speediest possible results con-
sistent with that fair balance between
needs and supply which is the essence
Of good craftsmanship.