The New York herald., 1921-03-09
WEDNESDAY. MARCH .. 1921.
Revision of Taxes.

1t Is a wise decision of the Presi-
dent and the House and Senate lead
ers to plunge Immediately, upon the
calling of the special session of Con-
gress, into revision Of the revenue
laws. There is no more pressing ques-
tion before this country than its own
domestic business-the business of
making it possible for American in
dustry to get on its feet again and
for the American Government to meet
its bills.
The new business management Of
the affairs Of the American people is
going to save, must save, hundreds of
millions of dollars Of the huge waste
that has been pouring over the dam.
But, whatever the reckless and use
less squander that already has been
stopped and however much more
can be stopped. still the Government
must spend billions In the wake Of
the war there is no escape from that.
And the cold truth IS thar the re-
quired funds will not flow into the
Treasury from the always unsound
and now unproductiye tax schedules
still In operation.
Not merely the excess profits tax
has lost its only virtue-that Of
yielding revenue. The income taxes,
sound enough in principle when the
country is running its industrial ma
chine at top speed and making siath-
ers of money but disastrously defec'
tive when business slows down and
profits become losses-the very in-
come taxes viii fail the Government
If, aside and apart from the effect
Of bad taxes on industry, there viii
not be the necessary revenues from
the excess profits taxes. because ex-
IL there will not be the necessary rev
enues from net income taxes. because
net incomes Of corporations and Of in
dividuals are now trickling in driblets
where before they rushed il streams !;
If there will not be the necessary rev
enues from even the so-called luxury
taxes, because millions Of people, feel
Ing the pinch Of shrinking incomes,
cut off luxury expenses first Of all
If there will not be the necessary rev
enues from import duties, because
higher tariffs tend to check the flow
of imports-lf, III short, the revenue
channels Of recent years are all dry
ing up, there IS nothing left for Con
gress to DO but to 20 TO fresh sources
OF revenue.
There Is one fountain which al
ways flows with vast volume. This
IS the sales that are made every day
of necessaries Of life and other ar
ticles Of consumption which 4 na-
tlonal population buys and uses in
good times as in slack times, whether
people are feeling rich or poor,
whether business and industry are
coming money or scoring deficits.
A very small sales tax on general
articles or use viii bring no hardship
to anybody. 1t will mean only 4 few
cents a week TO the man OF small in
come, and only few dollars a weel,
10 the man Of comfortable income,
while the man of large resources and
expenditures viii yield very consid-
cradle sum on the sales tax and will
still have his heavy income taxes to
pay.
This IS the Tux Or MI taxes for
Congress 70 adopt at this time. not
only because Il Is a fair Tux, just
tax and a light tax per capita but
because under present conditions IL
~ the only tax that can he relied
upon by the Government 20 put into
the Treasury the barrels Of money
that IL must have.