Evening star., 1921-07-31
BY WILL p. KENNEDY.

TINE entire country is awaiting
with intense interest the tax
revision bill which the ways
and means committee and the
House leaders promise soon after the
middle of August. The reason is that
it Is thought this legislation will result
more than anything else in return
Of prosperity. business confidence and
| revivification Of industry. 1t will
allow the business man to figure with
some assurance. instead of being in
a maze of doubt and uncertainty.
Correspondence received by every
member of Congress. and particularly
by House Leader Monden, has en-
phasized that this is the one para
mount piece of legislation in which
| the whole country is interested. and
on which prompt action is demanded
of the present administration. This
| correspondence has spoken in no un-
| certain terms.
Hearings on the tax revision prob
] lem started Tuesday and continued
| for four days. The question is now
being considered in executive session
| by the committee. The positive as
! surance to the people of the country.
| in every community, that tax bill
| would be ready on a certain date
say August 15-if the House an
nounced that it would adjourn to re-
| convene on that date for the purpose
of considering tax revision, was urged
upon House Leader Mondell. AS it is
| now, some of the republican leaders
point out that there is no positive as
| surance that the bill will be forth
| coming in three weeks, although
members of the ways and means COM
mittee say they expect they will be
able to report it by then.
| Meanwhile the business interests.
especially, and through them all con-
sumers. are anxious as to what the
tax revision will mean. Here is what
the majority members of the ways
and means committee and the House
leaders are pretty we'll agreed will
happen:
FOrecastinE Important Features.
| Existing taxes to be abolished or re-
| duced: % Repeal of the excess
profits tax. (2) reduction in the upper
ranges of the surtax, CD repeal of
| the transportation tax. 4) repeal of
the so-called nuisance taX." or soda
water tax.
Substitute taxes to produce the es-
sential revenues: U) Increasing the
fiat corporation income tax of 10 per
cent to Is per cent. (2) increasing
the excise tax on cigarettes and
smoking tobacco (not cigars). (3) in
creasing Inheritance tax slightly, "a
increase of l cent in the rate of let
ter postage, and possibly, but not
probably, slight tax on bank checks.
Quite positively it may be stated
that there will not be sales tax, not
because a sales tax is bad-quite the
contrary, ii is recognized as the most
cause it would be "inexpedient" poll
tically
The great difficulty is that Con-
gres for the most part has been con-
cerned with items of taxation and not
enough with the principle of taxation.
They have been trying to find a tax
that will be acceptable, when as a
ceptable.
Congress is struggling with the EN-
barrassment of being compelled to
think too much of policy rather than
the principle of taxation. 1t knows
the principle and recognizes the cor
rectness of it. but being forced, as it
Is, to view the subject from the poll
tical standpoint it cannot see the ad-
visa bility.
The simple facts are before Con-
gress. We must have in excess of
$4,000, ,000, 900 to pay the expenses that
cannot be reduced even by the most
rigid economy below that figure.
Consequently. the easiest way to
raise the money is likely to be ia
vored rather than the most economic
way.
Excess Profits Tax to Go.
The thoughtful, part of the country
has united upon the necessity for the
repeal of the excess profits tax in the
interests of the fundamental principle
to secure certainty" economy" of
administration and convenience" of
the taxpayer. Those three terms are
used by Prof. Seligman of Columbia
as fundamental.
There must be certainty for the tax
payer of what he.shas to pay. 1t is
generally known that the excess profits