Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-08
HARDING To INSIST
/ ON REPEAL Of TAXES
BY DAVID LAWRENCE
Leased Wire Service to The JournaI.)
(COpyright 1921


WASHINGTON, Sept. 6.-The Har-
ding administration intends to put
the full weight of it's influence be-
hind the original proposal of Secre-
tary Mellon, that tho excess profits
tax be repealed as Of last January,
so that when American business
makes. out it's income tax next March
there shall be only the corporation
tax of IL IL per cent to pay.
The change made III the house bill
whereby the excess profits tax would
be reapeled beginning next January
was not made at the instance of the
administration and was Dassively &C.
copied by Republ can house feeders
because of a conviction that the
senate could alter il and President
Harding would bring pressure to bear
when the conference committee of
the two houses finally had the mat
ter in hand.
If the house plan were to prevail,
not only would American business be
compelled to pay excess profits taxes
next March. but the full benefit of
the repeal would not be felt until
would be after the congressional
election. The Republican leaders are
mindful of the fact that they prom
Used in the 1920 campaign an imme-
date repeal of the. excess profits
tax, and already leading Republicans,
both inside and outside of congress,
are saying that If the excess profits
tax is not repealed, to take effect be-
fore the congressional election, the
pledge will have been futile.
Another argument being made in
favor of repeating the excess profits
tax as of last January is the fact
that this probably is the worst year
Of the hlISinaSG 6anreSSiOD cr
the war, and that if business ever
did need assistance and incentive,
this is the time to render aid.
Furthermore, if excess profits
taxes should be collected next March
for the year 1921, it will put a
strong weapon in the hands of those
members of congress who are OPP
the excess profits law. They will
be able to say that If the excess
profits tax yielded so much in a bad
year, the chances are it will yield
more in~ other years to come, and
that it should be retained. The 1921
yield would be looked upon as a
minimum that could not be ignored.
In other words, congress might be
put in the position of repeating a tax
which might become I basis for
campaign controversy next spring
and summer when the congressional
primaries and elections win be in
full swing.
Incidentally, the idea of a sales
tax, or rather production tax, has
not been altogether abandoned. SEN
ator Smoot is working ON a substi
tute for the house tax bill and HAS
announced that the entire tax pro-
gram can be simplified by means
Of a sales tax. Owing to Senator
Shoots influential position in the
administration, it is obvious that
he would not be working necessarily
during the recess of congress If he
did not have some encouragement
from the White House, It is known
that in cabinet discussions produc-
ton tax, payable once and at the
course Of manufacture, has been fav-
ored, and the only real obstacle to
the embodying Of such a tax in the
new bill is the warning of the treas
ury department, that it Would take
the income tax bureau at least four
or five months to acquaint itself
with the best method of administer
ing the new law, and that the COL
lection of the tax would be an ex-
pensive proposition.
OF one thing, however, business
men may be certain: The administra-
ton intends to stand by it's original
promise to repeal the excess profits
tax as of last January, and it is
predicted by cabinet members that
President Harding will probably
have his way on this matter when
the tax bill is up for final consid-
9ratiOn