New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-12-23
REDUCTION OF SUR TAX
LAUDED IN THE HOUSE

Washington, Dec. l4.-Defense o
the lowered taxation rates in the rev
enue bill as a means OF enchancine
business and prosperity is made BY
Representative Underhill, of Massa.
chusetts, in a speech in which hi
explains its benefit to labor and tc
industry in general. He says:
81 am not going to appeal to pre-,
JUDGES, but to offer an appeal for
the millions of unemployed through
out the length and breadth of thi,
country because of the system OF
taxation with which we have burd-
ened the employer. Business is the
biggest gamble in the world. You
have got a better chance at Monte
Carlo or at the race track than YOU
have in business. Ninety-three per
cent OF all the people engaged in
business in this country fail. | want
to appeal to gentlemen on that side
of the House, most OF whom have
a professional training and have a
professional view OF this question.
The business man is not always con-
cerned in the amount of money he
is going. to make in his business,
but frequently has the good OF the
community at heart, He desires to
see his business grow: he has a GER
tain pride in achievement, and UNI
less you can make this gamble at
least a $3.50 proposition, he is not
going to continue along those lines.
He is investing today in tax-exempt
securities and going on of business
and out OF employment, rot because
the securities are tax exempt. but
because the securities are the only
safe investment that he can make.
May | bring to your attention one
instance. One OF the Members OF
this body when he was elected to
the House sold everything he had in
the way OF business activities and
invested in industrials, which he sup
is not one of those stocks TODAY that
is paying a dividend. although when
he made his investment every one
OF them was paying dividends, and
he had reasonable assurance that they
would continue to do so, but through
the withdrawal OF financial support
they have been obliged to suspend
both production and dividends. You
seldom hear OF a lawyer failing, he
gets his fees, he knows what his
income is going to be from year to
year. but the business man does not
know from year to year whether
he is going to fail or be success
full. This year he makes $4,000 and
next year he may lose $4,000
THE business man is not so eon-
sentative that he is not willing to
take a chance, but he is unwilling
to take a chance if every time he
makes a dollar the Government takes
it away from him and does not re-
cognize him when by hard work and
industry he has built up his bus
mess and furnished employment. We
have a concrete illustration in Rus
STA. The very thing you are at
tempting here has been in force in
Russia for the last three or four
years. They started out to take the
wealth OF the country; they started
out to soak the rich man. When
they got all the rich men had they
tUIltu 10 Tue ldlloduN anu u niluN~
tries, and they took those away, Al
ter exhausting them there was but
one thing left, and that was the farm
err, and what was the result in Rus
STA? Every man in the country threw
up This hands in despair and said,
what is the use.p Now, you can
appeal il you will to the prejudices
of the people, but you are going to
find when you go back home that
the working man is going to say
this, I would rather be taxed and
have a job than pay no taxes and be
without a job And that is what
you are doing when you put this ex-
taxation upon business men.
Only one out of ten are successful
and able to employ labor; the 9TH
ers fail, and il you are going to en-
courage employment you must en-
courage men to employ their wealth
in industry.
"The excess-profits tax and the SUR
we're taken from England at a
time when the results could not be
ascertained. But after a trial of more
than four years in this country and
a longer period in England they have
absolutely inefficient and a
great deterrent. A continuation means
a confiscation Of all wealth and a
condition in industry closely akin to
hat of Russia.
"A remedy for this situation has
been urged frequently, but it has
been opposed by the demag-
,gue and certain blocs, so called, who
till appeal to prejudice of the peo-
pie through the cry Of Soak the
-ich.'
This is particularly true of the
farmer bloc and the labor bloc who
Gem to be absolutely indifferent to
he real results of this endeavor TO
Soak the rich,' ignoring the fact that
{ has withdrawn from industry and
agriculture the necessary capital, and
consequence every one has suf-
The remedy they suggest is
constitutional amendment allowing
he Federal Government to tax all
ax-exempt securities of the States
and municipalities, some
impossible of accomplishment
because the States will not agree to
laving an additional burden placed
Ipon them through the increased rate
e interest at which. these bonds will
lave to be marketed, and IN addi-
ion, State rights would absolutely
o into the discard; a very danger
,us and impossible situation. /
Investigation will show, however,
hat money is not being invested in
ax-exempt securities for the purpose
4 escaping taxation so much a sit
; to secure a perfectly sound and
afe investment, and that a man to-
Iay, although he may see possibili-
les of a much larger return in IN
or public service activities. re-
Lies the risk and prefers to take
smaller return rather thar iosel