River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1921-08-11
NEW REVENUE BILL
BY James A. Frear, M. c.

Immediately following the passage
of the tariff bill which is now before
the Senate Committee, the Ways and
Means Committee of the House began
on the new tax or revenue bill that
must raise four billion dollars an
nually. Four days public hearings
were allowed by the committee after
a vigorous protest had been made BY
the writer against shutting off wit
nesses who desired to be heard. One
argument urged upon the committee
by several speakers asked for tax of
one per cent on land and was aimed
at large holdings of .unimproved lands
by private parties and railway COM
ranies. Although the plan sought TO
exempt farms of $4,000 value after
aeducting all improvements it pre-
sented many difficulties of admins
tration before the merit of the propos-
al was reached Chairman Fordney
called attention to the fact that prac-
tically every speaker was asking to
be exempted from taxation and was
asking that the tax be placed on the
other fe low, when large dealer in
sporting goods was eloquently pro-
traying the hardship of golf players
| and baseball fans under present laws
| because of ten per cent tax on such
goods. He was reading to the COM
mittee the opinion of college pro-
lessor that exercise was essential to
health and we'll being of the average
boy, hence the tax should be repealed
on golf and baseballs. When advised
that the professor may have been
thinking of leap frog, running or
swimming he refused to be sidetrack-
ed and insisted golf and billia rds were
improperly taxed. One of the wit
nesses, Herman L. Ekern of Chicago,
formerly speaker of the Wisconsin
/ Assembly, dicussed insurance taxes
and urged some modification which
was practically promised. Ekern was
Secretary of the joint Legislative In
surance investigation when the writ
err was chairman in a 130-day investi-
cation in 1905 and the record became
the basis for an entire change in Wis
consin's insurance laws and gave to
policy holders strong hand in the
control of their companies.
Chairman Fordney announced when
the first witness, Mckenzie, began
the revenue hearings that no sales tax
would be discussed because the COM
mittee was opposed to any sales tax.
Mckenzie is a tax exrert who repre-
sents the American Farm Bureau
| Federation and came several hundred
miles at my request to speak but he
Immediately turned his guns against
repeal of the excess profits tax and
other matters and gave the result of
f. referendum with his farm organi-
ization as follows: Against issuing
free securities 1926, in favor 1921.
To continue excess profits tax 83,475
against 6,121. Against a general
sales tax 87,2S5; in favor 1921. These
results of about ten to one express
the sentiment of the country on the
sales tax and the only tax in question
is that of excess profits. 1t has con-
tributed large part of the heyenue
in TIE past and no substitute has yet
been offered that viii produce in
years to come sufficient revenue to
meet government needs.
Brady, who represents the great
movie producers in answer to my
questioning said Charles Chaplain re-
ceived about S1,250,0OO one year from
salary and royalties and Mary Pick
ford about a million dollars. Brady
felt that the ten per cent tax on adj
missions was serious menace to the
business but conceded that fabulous
salaries and general business depress-
ion were also responsible for condi-
tions today. TIE great problem with
the committee is how and where to
raise s4.000,O00. 900 annually without
burdening anyone with taxes. Ever
body desires exemptions and the ONLY
principle that seems equitable is thai
which taxes according to ability to
pay. 1t is not perfect, but no tax
pan will ever be perfect.
Six months ago a well organized
propaganda was started to stampede
Congress into the enactment of sales
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