, 1921-12-22
SENATOR WARREN IN FAVOR OF
TAN REFORM AT ONCE

Senator Francis E. Warren. writ
ing for the Pawtucket, Rhode Island,
Times, deals illuminatingly with the
federal taxation system, a subject
which he is especially well equipped
to discuss because of his position as
chairman of the committee of APP
preparations of the United states
senate.
Senator Warren's article follows:
CPawtucket. X. l. Times)
With congress in a turmoil over
proposed important changes in our
revenue laws and being swamped
with oceans of advice from econ
Omists-real and thaOretical-with
u~nfavorable business conditions, signs
of depression, stagnation. passing of
dividends, withdrawal of money from
investment n failures here and
there. the only clear ray of light is
n hat points out the why of the
condition and that why, seems to be
the present methods of taxing in
and excess profits. methods so
drastic that in some cases they
amount to practical confiscation.
Figures. often tricky things at
best. indicate that with $500, OOO,-
600 on deposit in this country dis
tributed among 1850, 900 depositors
that every depositor should have
$50 and every inhabitant $62. On
the face of it this may seem a small
sum for the average "free-born
American" to show for a period of
toll that may be many years yet
taken in comparison with the average
of only $l5S per depositor in the
worlds figures OF savings. it is to be
seer that We citizens Of the U. S. A.
did head the warning. guiding cry of
war-times. ECONOMY, thrift and con-
servation."
With savings depositors to the
number of one-tenth of our popula-
ton; with Liberty bond holders est
mated to number between Is and
20 millions-less. of course, than
there were during and Immediately
following actual war times-we may
safely depend upon the stability of
our corporation and believe thai our
Tom Joneses and Bill Smiths and
other stockholders are not holding a
listening ear in the director of the
voices that preach radicalism, COM
munism. or some other ism, by what
ever name. that may propose depart
ure from the safe and sane policies
OF our government. As fellow stock
holders. all Of US are keenly alive to
the fact that. in the interest of good
business and the smooth running of |
our corporate machinery. we must
raise money for our expenses with I
the least possible disturbance to
business progress II we would at
tain the highest success.
Much has been said and written
about the tax scheme in Canada,
which has without doubt brought into |
the Canadian treasury a huge sum,
and apparently no burden has been
felt by the taxpayers. In deed. one
writer referred to the levy. as a
painless tax" and. II any tax can
be th%ruthfully painless. the sales tax
OF Canada seems to justify the de-
scription. 1t became effective in May,
1920. and in its first veal of opera
tion, levying a rate of two cents on
the dollar. yielded $50, 900, 900 in
A similar levy in our
country would. it Is estimated. yield
about six hundred millions annually.
Without doubt it would be fair to all;
would put a premium upon economy,
and yet could not be said to carry any
extra imposition upon the Injuries
and extravagances of those who do
not want to be economical. The dis
tribution, in other words. would be
universal; the collection. would be
chances for dishonesty
and evasion would be minimized.
Congress Hesitates.
But regardless of the fact that our
own country has already had con-
experience with sales taxes
as imposed by the acts Of 1917 and
1918. the administration Of which
has been satisfactory and successful
there seems to be a hesitancy, there
to be . hesitancy on the part
congress to do away with the
annoying lines OF taxes so