The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-03-10
TUG-OF-WAR
over TARIFF,
TAX REVISION
Republican Leaders Puzzled
Which to Take Up First
Competition in Reluctance
Youngsters Doubtful.
TAX RATE WILL WIN
BY MARK SULLIVAN

oA-"oi 90 " "hlCI " tdho up uTSl.
the tariff or the revision of taxes. On
this question there have been confer
ences between President Harding and
some twenty of the Republican lead
ers. The conferences have ended with
out decision.
1t is disagreeable thing to decide,
because each course promises disap-
pointment at the end. It is a compe-
tition in reluctance.
A few of the Republican leaders,
who regard protection as an unfailing
guarantee of national prosperity, want
to jump into that Immediately. The
high priest of these is Fordney OF
Michigan. Fordney and these other
OLD leaders remember the Mckinley
tarln OF generation ago, and think
that what protection did then protec-
ton will do now They think protec.
tton is prosperity miracle maker at
all times and under all conditions.
Youngsters Differ.
There is group of younger leaders,
however, who believe that there is d
wide difference between the conditions
OF the nineties and the conditions of
today. They are far less certain that
the mere device of high protection will
now accomplish the things it seemed
to accomplish in the time of Mckinley
and of Dingiey. These younger lead
ers are by no means unfriendfy to the
protective tariff principle.
On the contrary, they are emphati-
cally in favor of it, but they have
grave doubts whether protection alone
will revive prosperity. and they don't
want to be in the position of reviving
the tariff without doing anything else,
or leading the country to expect pros
perity from that revision and then run
ming the risk of the punishment to
the party that would follow disappoint-
ment to the country.
Want Taxes First.
What these younger leaders want is
10 take up the revision of the taxes
frst They believe that the corpor-
ations and firms engaged in produc-
tive business cannot make their plans
intelligently until they know what
taxes they must pay, and they want
to get this uncertain factor out of the
way first.
business men generally are behind
this younger school Of Republican
leaders.
One need not to be a seer to foresee
that in the outcome this struggle will
be won by those who want to take up
tax revision first. The mere fact of
time will decide it if nothing else
should, everybody with any experience
knows that the writing of a tariff will
consume minimum of six months.
Anyone who wants to satisfy himself
On this can look up the history of the
tariffs of Mckinley, of Dingley, OF
Payne, and of Underwood.
Work is Slow.
The house, which works much more
compactly, can write a tariff in a com.
raratively short time, but no tariff
bill can go into the senate and come
out under six months. Senators must
talk. If the Republican leaders should
take up the tariff first, it is a fail
prediction that they would not com
plete the work before close to the end
OF the present year.
The revision of taxes, on the other
hand, can be accomplished in a com
paratively brief time.
On this point of the revision of the
taxes the public can take a few things
completely for granted The first
will strike the taxpayer with good
deal of dismay. Every person who is
Just now writing out his check for the
income tax payment due next Tues
day can rely with confidence and WITH
dstaste on the TACT that the check he
will be paying a year from Tuesday
will not be less Than the check he is
writing now. What | mean, of course
is that the rate will not De changed
and that the percentage of his income
which he must pay will be the same.
FuIfiIIment Delayed.
! know this is contrary to the Re
publican campaign promises TO reduce
taxation. but every well-informed Re
publican leader knows now. and possi
bly, some Of them knew it during the
campaign, that this is promise tha
cannot be wholly kent. AS one of then
said the other day, I'VE have promised
10 solve the insoluble.'
1t is true, the eXcessproftts tax will
be reduced in rate. or possibly wipe6
out altogether. but the eXceSs-proft:
tax has already ceased to be q revenue
producer.
To the degree that the eXcess-proft:
taxes have been reduced by the disap
Eearance Of profits. And to the de
gree that they may be reduced by any
change made in the rate. To tia.
same degree must the amount O
revenue derived from the income take;
he increased.
Rate to Be Same.
The rate of taxation on individua
incomes will be the same next year a:
this year There might be slight re
Guctions in the rate on very large in
comes. In a rough way, the Repub
lean leaders draw a line on income:
of abouts $4,000 a year. They sa,
that on incomes below that amoun
the rate Of taxation cannot be reduced
On incomes above that amount thu
rate may be reduced. not, of course
-
the rich, but rather to induce the ricl
TO quit putting their funds into tax
free municipal bonds.
The amount of money the govern
ment must pay out Is stubborn fac
and must be met. To certain ex
tent. through the use of perfectl,
legitimate devices the amount OF thu
governments immediate outlay can b.
reduced Appropriations can be pared
but all that can be done In that respec
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