The Washington herald., 1921-04-09
CONTINUED FROM PAGE ONE.

hAA6 Aho AaloLAQL 1GRah heo
control of grizzly bears and the
Agriculture Department of brown
bears. d,
These are the two big fundamen-
tai measures that the Republican
leaders now have in mind. They
will be fundamental, and they will
be useful. but they win fall short
of being Fundamental in proportion
to what the party would be able
to do with its immense franchise II
II had the imagination to see and
the courage to do.
Thtere are changes even more
fundamental than mere economy
and system. To the example initi-
ated by Mr.. Wilson and to be fol-
lowed by President Harding, of ad-
dressing Congress in person on the
foor. there should be added the in
novation Of having Cabinet MEM
bers make their reports and rec
concentrations in person to Con-
gress. and further than that Of haN-
ing the Cabinet members as spokes-
men for the administration, reply
to questions from Congress and take
part In the debates.
This innovation is considered by
few of the bolder leaders with
greater imagination. but there is not
enough sentiment behind IL among
the leaders to make IL possible to
predict 1t as in any degree a prob
ability.
Then Come Tax and Tariff.
Aside from these Fundamental
measures Congress will turn prompt
Fiy to the subjects of tariff and tax
|ation. The program so far as it has
been crystaIlized at his writing is
to pass Immediately three measures
which belong in a group, which are
emergency in their conception and
temporary in their intention.
The FIRST of these three measures
is the emergency tariff bill, to last
for period of six months until a
permanent tariff can be made. This
emergency tariff Is designed to act
substantially as an embargo against
the Importation of foBeign products
in competition with our own. - -
10 The second is an anti-dumping
measure designed to protect Ameri-
can producers against the importa-
tion of foreign goods under the
familiar conditions known as dump
ing"
The third is known as the Amer
lean valuation BILL" Intended to pre-
vent the practical nullihcation of
our tariffs by the present chaotic
difference in exchange between our
own money and that OF foreign gov
ernments.
With these three emergency
measures out Of the way. Congress
will turn to the two subjects of re-
vising the taxes and writing a
permanent tariff bill. There has
been strong difference of opinion as
to which of these two will be taken
up first.
Inevitably the course Of events
will bring il about that the work
of revising the taxes will be COM
pleted by Congress long before the
ariff-making is. There are aspects
of the tariff bill bound to make
for a degree of debate and delay
not now possible to foresee.
what Incomes VIII Be Hfts
In the revising Of the taxes the
changes now in sight are these: The
income taxes and surtaxes on very
large incomes-the ones which run
over 40 to 20 per cent-will be re-
pealed and arranged so that 40 per
sent will be the highest tax laid on
any income.
The purpose of this change on
large incomes is not primarily to
make 1t easier for the rich.
The purpose is based on the dis
covery by experience that the pres
ent surtaxes have caused the own
ers of large amounts of money to
L. a nj
bonds of the Federal. State and mu-
nicipal governments.
The hope is that by reducing the
higher rates the possessors of these
large fortunes will be induced to re-
store their money to investment In
the development of private corpora
tions. like railroads, public utilities,
and other forms of private busi-
ness.
On the smaller incomes running
from $50, 900 a year down to $1,000 a
year 1t is not intended to make any
change from the present schedule.
II any change on the smaller in
comes is made II is more likely to
be in the direction of increasing
them than of reducing them. The
present article, which aims to be
merely a statement of the Republi-
can program. Is not the place to dis
cuss the merit or wisdom of these
changes.
Another change tentatively dis
cussed in the field of taxation Is the
repeal of the excess profits tax on
corporations. This repeal is con-
tempIated partly on the theory that
during the present period of defia-
tion the corporations will not have
flarge profits and this form of taxa
tion will yield little. :
wosId Aid Enterprises.
The change also reflects a dispo-
sition 10 make conditions more
stimulating to initiative and expan-
sion on the part Of business enter
prises.
The final change within the field
of taxation that so far has the
approval of any number of i'm.
portant leaders Is the adoption OF
the direct sales tax" which Is sub
stantially a tax of either one-hali
of / per cent or 1 per cent. as may
later be decided. on the entire gross
sales Of everybody who sells goods
or services.
That is the proposal in its lars-
est aspect.
In the debates II my well be
that many changes and exemptions
will be made. In fact, IT Is pos
sible that the proposed change may
never survive the opposition oi
those members of Congress who
look upon 1t as being to too grea'
an extent q tax on the small con.
sumers. ~
As to making the new permanent
tarif. the Republican leaders are
Just beginning to see the unex-