The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-07-15
DAVID IAWRENCE.


Especial Dispatch to The Reformer.)
Copyright 1921.
WASHINGTON, July 15.-President
Harding has made it clear to the Republi-
can leaders in congress that he wants a
tax program adopted which will lift re-
straint from business initiative He is
not committed to sales tax, but is in
clined to believe that tax on production
at the source can be imposed without add
ing to the burden of business.
While the tax program is in embryo
condition. certain fundamentals are prac-
tically agreed upon For instance, bust
ness men everywhere have been lmagm-
ing that with the repeal of the excess
profit tax the government would be obliged
to increase materially the corporation
taxes. The aim of the Harding admins
tration, however is TO avoid any increase
of corporation taxes if possible, and only
to impose a slight addition in corporation
taxes, if necessary. There Is indeed, no
thought of making the corporation taxes
a substitute for the excess profit tax.
Revival of Business First.
This decision ought to be good news
to the business men of the country who
have been worried over the prospects of
a greatly increased corporation tax.
President Harding, however. feels that
the revival of business in America Is at
this time a paramount consideration, and
that nothing should be placed in the way
of business incentive. The repeal of the
excess profit tax is u foregone conclusion,
and it is certain that the next revenue
bill will not attempt to make the business
and industries of the country carry the
bulk of the load. Instead, the tax bur-
den. will be more evenly distributed by
the use of every sort of stamp tax. The
three-cent letter postage may come back,
and it seems assured that revenue stamps
will be necessary on practically every kind
of business transaction. from bank checks
and drafts to real estate papers and other
documents of purchase and sale. While
these small taxes may prove annoying and
inconvenient, the feeling is that such an
noyance is hardly to be compared with
the burden hithertos carried by business
as a whole Taxes at best are disagree
able, but the governments job this time is
/ To distribute them in such fashion as to
stimulate business revival. -
Favor Tax on Production.
| The tax on production is favored az
substitute for the sales tax because il
4 will not be so difficult to collect and will
not be paid several times as goods pass
from producer to consumer. The exact
form of this production tax has not vet
been determined, but the idea appears tC
be to impose the tax on the output OF
commodities very much as the present tax
on automobiles is covered. In such cases
of course, the manufacturer will pass on
the payment of the tax to the consumer
as happens with automobiles. but in the
sales tax proposal the chances were that
more than one tax would be imposed OF
the same article as it passed to variou,
stages.
Will Push Tax Program.
| The progress of the tax program is ex
pected to be more rapid after the house
! finishes with the permanent tariff
bill. Indeed, it is the administration
= plan to have the senate sidetrack tn,
tariff bill when it gets to the senate, by
4 having lengthy committee hearings. Tn,
revenue agreed upon by Republican lead
! erS will also be introduced in the senat,
and referred to committee while it is be
ring discussed in the house 1t will near
/ that the tax bin viii come out of the sen
! ate finance committee ahead of the tariff
! and probably will be passed before tn,
/ tariff bill is debated. The hope now is
that both the tax and the tariff bills will b,
out of the way by October L.