Evening star., 1921-07-30

The one great problem confronting
American business today is that of
taxes. in the opinion of J. Philip
Bird. general manager Of the National
Association of Manufacturers of New
York. Mr.. Bird presided yesterday at
a conference of business men and Of
ficials of the Department of Com
merce called to consider manufactur-
ing schedules for the census bureau
from the standpoint of the business
man.
The excess profits tax has made
towards of thousands of business men
who have always held up their heads
and paid their bills" Mr.. Bird said.
with no criticism of the administra-
tion but with a desire to be OF help IN
any way possible. l do not see why
the administration leaders do not
buckle down at once and discard all
extraneous issues for the time being
In favor of some revision of taxes.
Why talk about the tariff and other
important domestic issues when the
political prestige of the administra-
tion is being jeopardized in the minds
Of business men of the nation by ITS
seeming apathy on the tax question:
Cannot Reckon Charge.
collection of tax on business
that has been done months before is
not fair to the business man. He does
not know how to reckon his charges
and cannot be sure of his business
state of affairs for fear that the in
come tax bureau will suddenly come
TO him with a statement that he owes
them some money for business done
some time ago. A concrete case IS
offered in an industry in which | am
interested. Watching the general IN
dustrial situation. we cut our work
down to thirty hours a week and
found the men did not produce SO
much work. so we cut our force, thus
an income tax. collector with a de-
mand for an additional excess profits
tax of $4,000. Where are we going
to get the money to pay it?
THE same situation faces many
business men In the United States.
The business man has borrowed to his
limit and now the banks oner no CO.
operation. No matter what the ousi-
tude of banks now is that the, COL
lateral must be absolutely secure be
fore loan is made. In other words.
the banker must have the cards
stacked before he let's go OF MS
money. The one function of the fed
eral reserve banks, as l see 1t. should
be to make member banks realize
the business standing of firm whlch
applies for loan.
Opposes Excess Fronts Tax.
- The solution of the whole problem,
in the opinion of the great percentage
Of American manufacturers. is eliml-
nation of the excess profits tax and
Imposition of the sales tax. AS a re-
suit of a recent referendum taken by
the National Association of Manufac-
furers So per cent of $500 members
declared themselves in favor OF the
sales taxa fiat tax in which the ultl-
mate tax is paid by the consumer d.
rect BY this means business men can
Compute their tax by their sales ana
will not be constantly bothered by the
bugaboo of excess profits taxes hans-
ing over their heads.
"The government needs money and
every one realizes 1t, but business men
believe the government should make
some concessions and should take into
consideration both the business stand
ing of firm and the possioillty OF
early payment of taxes. Leaders In
Congress realize the urgent need or
tax revision and laying Of the sales
tax, and I cannot see why they do not
get to work and give us some action
on tax revision. The only answer is
for reasons of political expediency.
With a fiat taX-the sales tax-busi-
ness can then go ahead with conf
dence and security. and men who have
been turned into business towards by
the threat of the excess profits tax
can hold up their heads once again.
Tariff Secondary to Tax.
"The tariff is absolutely secondary
to the tax program. and l am high
protectionist."
The conference yesterday between
officials of the Department of Com
merce and business men marked a
new era in the relations between busi-
ness and government, Mr.. Bird said.
The voluntary request by the govern
ment for cooperation of business men
IA som hing new. he said,
I'VE are used to having government
representatives come and take what
they want, without asking like men
for our cooperation" he added. Ma
than Williams. general counsel of
the Manufacturers Association. has
been appointed chairman of a COM
,nittee of nine business men who will
work with the census bureau in draw
ing up new manufactures schedules
to meet the views of business. Sepa-
rate schedules will be made for each
craft to suit it's demands.