New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1921-10-12
- q NsasFFsFE y sHfF 9 3s
IFrom: "The Ney Republic. y
The High Cost, Of government,

L The country has now learned What
The leaders of the Republican Party have
probably long suspected, that it is easier
to make fiscal promises than to redeem
them. The fiscal burdens that are sadd-
led on nation during and after all wars
cannot be disposed of lightly, no matter
how good are the intentions OF the legls-
lature and of the Treasury. These are
the outstanding conclusions to be drawn
fromf an examination of the estimates OF,
federal expenditures in the fiscal year
1922, and of the proposals for tax revls-
ion submitted by Secretary Mellon to
the ways and Means Committee on Aug-
LIST. The. astonishment, dismay, and per-
plexity with which Secretary M.ellonr2s
reco lamentations are reported to have
been greeted in Washington, may be re-
gesture when Mr., Melons suggestions
are compared with the report Of Secre-
tary Houston in November, 1920, and
with the. course of federal expenditures
since then. saeszs.ss3.sa.l ssszsa
The significant elements in the secre-
taryss recommendations to the Ways and
Means Committee are simple and clear.
Federal expenditures for the fiscal year
ending$:ju1le 80, 1922, he estimates, will
amountsto $4,000, 900, 600 This figure IS
about billion dollars more than the
country had hoped it would be. 70 meet
this budget of probable expenditure 1t
is proposed first to eliminate prevailing
taxes that are peculiarly Irritating ana
burdensome to business and to the people
and to substitute other forms OF taxes,
which will presumably bear more lightly
on those who are destined to pay them.
Hence, the program calls for the repeal
of the excess profits tax; the reduction OF
income surtaxes from 70 to 40 per cent;
the reduction by one-half OF the trans
portation taxes; and the repeal OF taxes ta5
on soft drinks and ice cream. Revenue
lost from these sources will be replaced
by the income from proposed new taxes,
of which The most Important are a nat
tax ofI5l5 per cent, tonn the net incomes OF
corporations, coupled with the lifting OF the
present $4,000 exemption; tax OF
cents on bank checks; flat tax OF 9lO
on all automobiles; and the restoration
of 3-cent postage for frst-class mall.
Both the estimates Of expenditure ana
the plans for tax revision were promptly
metswith storm Of disapproval and crltl-
cism from all quarters. A peace7-tlme
budget Of more than four-and-a halt bill
lions, tits it is pointed out, is no evidence OF
serious. attempt by the present admins
tration to curb the extravagances IN led;
eral administration set ID operation py
it's predecessor. While, also, the new taxes
may relieve business and individuals iron
the inequities of the excess profits tax anc
of the income surfaces, they at the same
time impose new and equally heavy bur:
dens. Some of this disapproval IS, O
course, of kind that would meet any
new fiscal measures; but much OF It rests
on firm grounds Of all the tax recon-
mendations made by Mr.. Mellon, the sug
gested reduction Of income surfaces from
70 to 40 per cent seems the most deserv
ing Of careful consideration, Sound II
abstract principle, in practical operation
the prevailing surtaxes in this class hav,