The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-07-22
With Tariff Bill Sent to Senate
House Committee Will Be-
gin Hearings on New Reve-
nue. Measure at Once.
NATION ASKS RELIEF
PALLADIUM NEWS BUREAU


measure which will provide system
OF taxation that will be less burden
some and more fairly distributed than
the existing system which was devised
TO meet war conditions.
The demand for relief from existing
taxing methods is vigorous and nation
wide. In no state is this demand more
general or more insistent than in In
diana, but Indiana business men are
sharply divided as to whether the new
revenue law should include a sales
tax.
Indiana business interests princi-
pally blame the existing taxation
system as being responsible for poor
trade. tight money. restricted credit,
diminished enterprise and employment
and general discontinue after many
months of liquidation and readjust-
ments.
AS whole they are asking for con-
tinuance of progressive income taxa
tion of individuals and a fat tax on
corporation earnings, but with rates
fixed within the limits of moderation.
Urge Broad Basis
They are asking for simplifcation
OF taxation, the abolishment of the
excess profits tax, the elimination OF
minor irksome special taxes and, to
the extent that the needs of the gov
ernment require the resulting reduc-
tion of revenue to be made good,
broadening of the basis of indirect
taxation
The department of justice on behalf
of the general public has charged that
the federal taxation laws now opera
Co
age increase of % per cent in prices
The senate finance committee has
completed it's hearings on revenue
legislation after several weeks of ac-
tivity. The evidence the senate has
collected will be available for the
ways and means committee of the
house. wherein the revenue bill must
originate, so the work of framing the
new measure will not be delayed. In
fact the house is expected to pass the
bill not later than the middle of next
month.
Tin1id on Sales Tax
Proponents of the sales tax were ac-
tive during the time the senate fin
ance committee was holding it's hear
ings. but it is believed the majority
members of the ways and means COM
with extreme caution for the reason
that the introduction of such a tax
coincident with the proposed abolition
OF the excess profits tax and the reduc-
ton OF the extreme surtaxes would
afford easy ground for the allegation
that the party in power sought to re
lieve the rich and big business at the
expense of the masses of the people.
Sales tax advocates assert, how
ever, that such a charge would be un
justified, because, first, it is doubt
full whether a reduction of the surtax
rates will lead to a lessening of the
revenue inasmuch as many persons
will pay, they say, a reasonable sur
tax who now keep their capital with
in the safe haven of taxexempt securi
ties, and many business will be con
cluded subject to reasonable taxation
that under existing rates is not con
summated at all; that the charge is
unjustified, because. secondly, sales
tax will, in its results, be considerably
less burdensome on the masses of the
people than are the present direc1
taxes in their proven effects.
Reminded Of Cox
Republican members of the ways
and means committee who have beer
inclined to balk at the proposed sales
tax have been reminded by it's advo
Gates that the recent Democratic can
didate for president, Governor Cox
committed himself during the cam
paign TO a definite advocacy of the
sales tax. Certain Republican con
gressmen have suggested that Gov
ernor Cox's advocacy of the sales ta1
might, in measure, be responsible,
for the seven million majority Mr.
Harding received.
But the business interests of tn,
country are far from being in agree
ment on the question of sales tax
1t is quite possible that the ways ant
means committee will be prevailet
upon TO reject it.
The early fall is expected to witnes
general industrial improvement il
Indiana. according to the current re
view of business conditions through
out the country, just issued by the dc
partment of labor.
The department finds that even nov
business is somewhat improved in II
diana, leaving the employment situs
ton better. The furniture business i
Indiana, the report states, is now fee
ing the business depression to larg
degree. This is an important industr
in various parts of the sixth congre.
sional district
Automobile manufacturers, how
ever, are enjoying increased produt
ton. a condition which is importar
to the three largest cities in the di
trict. Richmond, Newcastle and Col
nersville.
Indiana coal mines are operatin
but three days week, but unemplo,
ment in that line is relieved to som
extent by opportunities in the harve:
fields
The unemployment situation
Muncie is shown to be acute, eigl
manufacturing plants having close
throwing $500 men out of emplo
ment The department reports b
tween 5000 and 5000 people are u
employed in Evansville.