Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1921-01-28
CONGRESS BUSY oEvlslNc
NEW SCHEMES FOR RAISING
TAXES TO MEET EXPENSES
BY Charles N. Kelley

ing LA4eB III buCu Uauncf a. ~ w
mote the least discount. Any kind of
government will so along without
serious difficulty so long as II does
not lay too heavily upon the purses Of
the people. When that happens, the
people become hypercritical and are
much inclined to fault.finding, and
then 1t IL not safe to promote schemes
not In the public interest, but
which serve to aggravate conditions
already acute.
The present Congress. and Its sue
cessor In even greater decree, are
going to devote a great deal Of snx-
ious thought to the tax problem. The
national treasury l. empty and ordi-
nary government requirements have
been met by the location of short
term notes bearing high rates OF
interest. Tax returns have been large.
but still they are this year two billion
dollars short of the demands made
upon them. The situation. unfortun-
ately. Is not improving. There must be
heavy reductions In appropriations,
but the most rigid economy VIII not
bridge the gap that separates income
and outgo. 1t Is Congress- task TO
without laying upon the people bur
dens that will be too heavy 10 carry.
The large interests are seeking
relief from income and excess profits
taxes. They are telling congressman
that the business depressions Is large
ly due to these levies. Business has
been hampered and INSTRUCTED until
profits have disappeared. Thonsands
who have been taking profits are now
recording deficits. and tbs govern
ment. even IL existing tax laws are
retained, will obtain from them hun
dreds of millions less than were col
lected last year. (
II Is probably not unfair 10 say that
congress- Is more than willing and
ready to accommodate the extortion-
ers and profiteers. but IL doesn't know
exactly how the thing can be done
without hostile reaction which they
are anxious to avoid il possible. For
awhile 1t was thought that Increased
taxes on Injuries would solve the
problem. but little is to be gained In
taxing luxuries when vast majority
of the people find II difficult to Sc
cure the necessities. and millions are
unable to do even that
In all the discussion that has been
provoked by the nations unhealthy
| financial condition, but one method OF
increasing income has been advanced
and seriously considered. Everybody
or nearly everybody who has any
influence at Washington--urges the
adoption OF sales taxes--taxes on con-
sumption, on what people eat, wear
and use This Is the only sure ana
certain way OF getting money neces'
sary to maintain the extravaganza ap-
preparations of congress. Everybody
eats and wears something, and when
all are required to pay for the mere
privilege of existing. a steady stream
of dollars Is certain to fow into the
national treasury.
The advantage OF sales tax. from
the viewpoint of those who have. Is
,. that II compels every citizen to bear
an equal share OF the cost OF main
tanning the government. The ricn
mans family eats and wears but lit
tie II any more than the poor mans
| family. The worker who earns three
dollars a day will. with sales tax
operating. probably pay as much to
the government as will Mr.. Rockefel-
| Ter. whose stomach Is weak and whose
creature demands are extremely mod
est.
IL taxes are piled upon corporations
or profiteering business men. they Will
be unable to function efficiently, 1t Is
claimed But II taxes are placed upon
food and clothing they will be paid,
for men and women must eat and
wear clothes. in the present state oil
society, In any event. So sales tax
! II Is going to be- We are going TO
maintain a four billion dollar budget
by taking food from the stomach and
clothes from the back. We are goins
to get more money for the govern
ment by giving less food to the popu
lation.
There are. however. some merits to
sales tax. The people will. when 1t
| is adopted, be In no doubt as to who
| is paying the bills. They were not
always so informed under a system OF
indirect taxation. But when the gro
Ger, the butcher, the baker and the
landlord all add little to every item
bought and paid for. to be turned over
| to the tax gatherers, nobody Will be
| In any doubt as to who Is sustaining
the government. And then we will
probably have more interest In the
conduct of government. Well more
carefully scrutinize appropriations
made by congress, and when hundreds
OF millions of dollars are being Law
ished upon special interests our emp.
" stomachs will tell us that We are
not getting a fair deal and we'll let
out a howl Of protest that will reach
and be heard at Washington--maybe.
The nation that is compelled to tax
the bellies and the backs of its people
is In a bad way. II Is trodding the
dangerous road We have endured
many injustices and hardships during
the past few years. but the popular
patience is frayed and ragged. 1t
should not be put to unduly severe
tests. For it may give way. and then
something horrendous may happen to
those mediocrities in congress who
throw up their hands In despair when
really serious proposition in gov
eminent demands attention. They
have been trained so long in that
school which yields its first allegiance
to the interests that they know pre-
cious little of what the great body OF
the public is doing and thinking.