The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1921-07-07
TAX AND TARIFF REVISION

Time 10 Lule give u tie COuBIe55 III
formation of the state of the union
and recommend to their consideration
such measures as he shall judge neces.
sary and expedient,' 1t Is entirely con
sistent that President Harding should
call in Chairman Fordney of the ways
and means committee, and inquire
when it may be exepcted that congress
will begin consideration OF the tariff
and tax bills, indeed, that is a question
that has been upon the lips Of the
whole country for several weeks.
While there/has been no disposition
to hurry congress, and while the enact
ment of the emergency tariff law pro-
vided temporary protection against the
flooding Of domestic markets with for.
eign products, it can not be denied that
of late there has been a rather general
feeling Of restlessness over the delay
in gettingfto the real business of this
extra session. The country wants ac-
ton.
Assurances are given that the tariff
bill Is about ready for submission TO
the house and that within a week or
two it will be under debate. What time
will be required to dispose Of it Is not
known, but it Is minated that after
it reaches the senate the committee on
finance will wish four or FIVE weeks
to consider it before reporting 1t to
the senate. In the meantime, it Is pro-
posed that the tax revision bill shall
be coming along in the wake of the
tariff bill.
A general speeding up of the legis-
lative program will be welcomed by
the public. The state Of the union
demands that these two important
measures be disposed of as promptly
as is consistent with wise and judi
cious action. and the president is fully
warranted in letting congress know
this. 1t Is the general belief in bust.
ness circles that the enactment of tariff
and tax legislation will be a contribu
tory factor In the restoration of condi
tions to normal, and that belief should
prove a sufficient stimulus to move con
gress to act promptly.
There is. of course, a very decided
difference Of opinion as to whether
tariff or tax legislation should be pu,
through first, and this question was
again reviewed in the senate by Mr.
Watson Of Indiana, a member of the
finance committee. AS now formu
lated, the program calls for tariff re
vision first. this having been decided
at a conference OF members OF tn,
ways and means and finance commit
tees. Under ordinary conditions thi.
would be the logical thing to do, bu'
it Is urged that ordinary condition.
do not obtain at present, and that the
policy of congress should be adapted
to the extraordinary situation.
Tax revision contemplates the re
peal of the excess profits taxes ant
a reduction in the higher brackets o.
the income taxes. Two strong rea
sons are given for this, the first beine
that under the stagnant condition O
business the yield from them has
dwindled to a low point, and may
reach nothing; and secondly, tina,
these taxes have a decidedly repres
sive influence upon industry and com
merce, discouraging new ventures and
activities.
For these two reasons it Is urged
that tax revision should be enacted
first, since it will furnish a greater
measure of relief from the existing
depression. The argument also is
made that because Of the abnormal
condition Of business 1t is impossible
at this time to frame a tariff law
which will meet the demands of the
country when a business revival ome
Any law passed now, 1t is said, must
be subject to amendment In the near
future.
Thus a knotty problem is presented
to congress, n which will test the
best judgment of the leadership in
house and senate. But since 1t is only
a question of which is the better meth
cd of procedure, probably no serious
mistake will be made. There is every
confidence that those charged with re-
sponsibility will act for the best in.
terests of the country according to
their lights.
This question of policy, however,
should cause no delay in action.
Whichever subject is taken up first
should be given the earnest and prompt
consideration of congress and voted
on as soon as possible for the country
is entitled to the speedy enjoyment
of whatever benefit these measures
will bring to the readjustment of in
dustry and commerce.
--w q S-