The Farmington times., 1921-08-12
DOWN TO $l1,o5O,o0o A DAY


entered on program of expenditure
whose cost during the next fiscal year
was estimated at $4,544, 100000. This
is at the rate Of more than $12, 1885,
900 day for the year-about half
million of dollars for each hour. The
public, aghast at the continuance of
such drain on its productive resourc-
es, has insisted that initiation in gov
ernment costs must have the same
heroic treatment as imitation in costs
elsewhere. It's vehemence has at last
made impress at Washington, which
for months has seemed not merely to
ignore its duty in the matter, but to
ignore even the unpleasantness of its
discussion. A program of retrench-
ment is at last announced, in the for
nation of which the White House
seems to have exerted an important
influence. Under this program the
administrators of federal affairs will
endeavor to cut down their outgo by
round sum of $520,0OO,000, or from
the $4,544,OOO,O0O formerly estimated
to $4,024, 100000. This is a reduction
of about million and half a day, in
round numbers, or little more than
13 per cent.
With these reductions in proposed
expenditures, the budget-makers have
chance to make material reductions
in taxes. What are these forms of
taxation which have been selected for
immediate decrease? There are but
two. One is the excess profits tax, es-
timated to yield this year $3.50, ,000, 900,
and the only other is the tax above 80
per cent on the higher increments of
income. Of the various forms of new
taxes seriously considered for avoid
ing deficit this year, those on motor
cars, bank checks, letter postage, ETC.,
but one will be made effective. This
is the increased tax on corporations
income, fixed at 5 per cent and max
ing the total corporate income tax
IL 1-2 per cent.
The program, so far as it relates to
taxation, is still open to the objection
that in relieving great wealth Of
substantial part of its burden, it af-
fords no corresponding relief to the
common man, except so far as the tax
on excess profits is passed on to the
| consumer and except so far as the tax
above 80 per cent on huge individual
incomes stimulates investments in tax
free securities. That tends to increase
the burden on those who haven't the
money with which to buy tax-free Sc
curities. The point is one Of which
much would be made, if 1921 were the
campaign year rather than 1922.
But while the remission in respect
to these two forms of taxes is the on
ly material relief that will be made
available, so far as profits and in
comes accruing during the present
year are concerned, other remissions
that will become perceptible in the
tax payments made in March, 1923,
and on other dates Of that year will
| go into effect on January l next, ap-
plying to the transactions and income
of the entire year 1922. The transpor.
tation tax will then be repealed, ex-
cept that on Pullman fares and ex.
press matter, Do all excursionistS
and shippers realize that of the high
railroad rates they are paying, a sub.
stantial part goes to the government
Abolition of the nuisance and luxury
taxes" and a decrease in the tax or
moderate incomes are also promised
on January / next.
|. Of the $520,000,0OO by which ex'
penses are to be reduced, $4,000 ,OO(
is to be taken from the navy, $780,,
100000 from the Amy, $1Oo,0OO,0C(
lfrom the Shipping Board, various sum-
from other departments, and $17O,
900, 900 needed to pay off government
Indebtedness coming due will be bor
, rowed. Internal taxes are estimated
to yield $3,oS4,oOO,OOo even after thu
pairing, how is the additional rount
billion to be obtained? A part is tt
come from the Fordney bill, a larg'
sum from miscellaneous sources an'
war salvage and the mine of evade'
, and overdue taxes is to be worked tt
the extent of an estimated 100000,
I00O.
Il The bill revising the taxes is to b.
, reported next week.. That busines
may know what to expect, it is plan
| ned to rush it to enactment before tn
/, | Fordney measure. May we not hop
that as its possibilities are studied
further ways of diminishing govern
ment costs may be found? A re
. LII lon,ya. faJa,.al ~