The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1921-09-28


II shall be done.
Every time he has been before the
Senate Finance Committee in con-
nection with this measure, Mr.. Mel
Ion has insisted upon having this
authority, but not once has he sub
mitted a plan; on the contrary, he
has admitted having no definite plan,
further than to meet situations as
they arise.
The question asked by Democratic
Senators, and 1t is one for the people
themselves to answer, is Should
one man be given absolute power to
deal with this $1,000, 900, 900 in
debtedness as he sees fit without re-
vealing what he plans to do and
without being subject to the au-
thority of Congress, which granted
these loans; which is the only power
that could grant them and is the on
ly power that has supreme control
of the finances of the government?
Scraps Fair Taxation, Says Congress-
man Beck (Rep.).
Here is what Representative Joseph
ID. Beck (Rep., Wis.,, had to say on
the floor of the House concerning the
repeal of excess r,rofits taxes and
higher surtaxes, which the admins
tration would make effective for
1921:
II believe there is more in the bill
which should not become law than
there is that should become law.
Therefore l shall have to vote against
what little good there is in it in Or
der to protest against the many pro-
visions which can not be justified by
any sound principle of taxation that
has been yet devised.
another feature of this bill upon
which great emphasis has been laid
is that IL taxes everybody alike.
"But let us see how this bill taxes
everybody alike. Take a 100000, 900
corporation as an example. If this
corporation is willing to operate on
a per cent income on invested capt.
tai, this bill increases it's tax sig, 450
over what it now pays under the pres
ent law. If it makes per cent on
invested capital, it's taxes are in
creased $14,950. If it makes per
cent, it's taxes are increased $19,950.
But if it does what this bill encour-
ages it to it will squeeze out of the
consumer all the traffic will bear. Its
taxes will then be reduced. If it
makes Is per cent. its taxes will be
reduced from S275,260 TO $1S7,250.
If it wants to squeeze still more and
make 25 per cent. it's taxes are re-
Guoed from s645,260 to s312,250.
Bp; il it wants to mako SO per cent
on invested capital, its taxes are re-
duced from S1,795.260 to s624,750,
or about one-third of what it would
be under existing law. What is true
of the $1O,0OO,OOO corporation is
true of the $4,000. 900, the $4,000
600. the $1,OOO,O 900, half-million and
lesser corporations. This is one IL
lustration OF how we are told every
body is taxed alike under this bill.
| This is the effect of the repeal of ex-
cess-profits tax. 1t scraps the princi-
pie of taxing according to ability to
pay.
Passing from the corporation to
| the individual, let us see how the re-
peal of the surtax law works out.
If a mans income is 100000 a
year, his taxes are reduced S2,72O.
But If he has bad luck and only
makes $1,000, 900, his taxes are re-
duced 1924. 720; and if he has real
bad luck and makes only 100000,
his taxes are reduced s604,720. One
of the Treasury officials says that
about 100000 wealthy people in this
country will be affected by this re-
peal and will be relieved of millions
of dollars in taxes.
"The effect of this law will be.
first, to drive corporations into max
ing huge profits; and, second, to
either force the small ones out of ex-
i,'istence or drive them into large COM
binations, and the people will pay the
bills. What they will save by the
repeal of the tax on freight. pas
senger and express rates. on ice
cream and soda water. on toys. and
the additional exemption of $500
provided in this bill will not be a
drop in the bucket compared with
what the people will have to pay in
huge profits to large combinations
Of wealth that are encOurag ed nv this