The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-03-12
MONDE[[ FOR
CUTTING TAXES
Believes This Should BE
First Work of Special
Session of Congress
COULD CUT TWO
BILLION ON INCOMES
No Sales Tax Necessary-WOuld Make
Tariff Revision Permanent-NO Gov
ernment Economy Possible Until Rev
enues Are Limited, He Says.


WASHINGTON, March l2.-Maiority
leader Frank w. Mondell announces
that the incoming house of representa-
tlves will take up the revision of the
revenue laws immediately after it
passes the army and navy appropriation
bills and a few of the emergency meas.
ures which died with the last congress-
1t is his opinion that the excess profits
tax can be repealed and the higher in
come surtaxes can be reduced without
the enactment of new laws to take
their place. He declares that the people
want relief from tax burdens rather
than the mere shifting of these bur
dens, and is, therefore, opposed to any
sales tax unless it is found to be abso-
lutely necessary. He says that there is
10 rhyme or reason in the government
drawing S5,000,000,000 a year from the
incomes, activities and industries of the
country and predicts that a reduction
of $2,000,000,000 can he made without
crippling the affairs of the nation.
Mr.. Mondell differs with Senator
Boies .Penrose. on the matter of tariff
legislation. Senator Penrose contends
tectlng the agricultural interests of the
West and South, should be enacted i'm
medlately after the new congress Is
called into session by President Hard
ing. The house leader questions the
wisdom OF passing emergency legisla
tion, saying it would take as long to en-
act makeshift measure as to pass a
permanent measure. He believes con-
gress should prepare and pass a revenue
bill as quickly as possible and then turn
ITS attention to complete tariff bill.
FIRST thing for the house to do
ssaid Mr.. Mondel. lis to finish the work
Of the Sixty-siXth congress. 1t should
pass the two great defense bills, those
tor the army and navy, which failed to
yet under the wire in the closing days
an immigration bill and one or two
other measures of an emergency char
acter. A bill making the budget system
operative will follow right along Then
we can give our attention to preparing
the much needed revenue and tariff
bills 1t Is probable that the revenue
bill Will be taken UP ahead of the tariff
bill, unless a temporary tariff measure
is found to be absolutely necessary.
What the people want is relief from
tax burdens, rather than the mere shift
ing OF tax burdens. \ sale tax may be
necessary, but | seriously question
whether it Is. We can reduce the fed
eTal income by at least $500, coo 900, pos
sibly to a considerably greater extent.
and still meet the cost of a government
economically administered. No one
thing that congress can do Will have
so great an influence in tendency to
reduce excessive price levels, to quicken
the wheels of industry in established
enterprises, as the tightening of the tax
burden of the country. We canot hope
for a quickeTrng of industry and an en-
largement of development while $1,000
UU0000 or 6000,0O0,000 a year are being
drawn from the incomes, activities and
industries of the country into the fed
eTal treasury, and while in many lines
men hesitate to take the chances of ex-
pansion and new development in bust
ness, because of the fact that. if they
lose, the loss is theirs, and if they gain,
most of the gain goes to the govern
ment.
There is another feature of the sit
uation worthy of consideration. DO the
best we can to economic IN government
expenditures, I doubt if we can keep
expenditures much below the revenues.
no matter how high they may be. |
know of no way to compel economy IN
government expenditure other than by
curtailment of the sums that are avail
able to be expended. Three billion dol
lars ought, in the very near future, to
be the limit of federal expenditures.
including interest on the public debt
and payments on the sinking fund.
There are still some war hangovers
which would not come within this sum
that should be cleaned up in the near
future. We should proceed to reduce
the principal of the war debt, either
bonded or floating, by salvage rather
than by taxation. 1t is not good bust,
ness to continue three years after the
close of the war paying the war debt
out of revenue raised by taxation. eX-
cept at about the rate and on the prin-
cipal of sinking fund payments. The
country needs to get down to sound and
sane principles and policies, both in re-
gard to taxation and expenditures