The Dawson news. (Dawson, Ga.) 1889-current, 1921-01-11
TO Be NO CHANGES IN
TAX ON SMALL INCOMES
ALL INDIVIDUALS TO PAY ON
SUMS OVER $1,000 AND $4,000
AS HERETOFORE.
ARE MAPPED OUT
Congress Preparing to Pass on to the
Future Generations Greater Bur-
den of War Debt. Entire Surtax
Scale to Undergo Revision.

Scale to Undergo Revision.
WASHINGTON, D. C.-Sentiment
in the ways and means committee of
the house following recent hearings
the last fortnight indicates the follow
ing line of action on tax revision in
the next congress:
l. Repeal of the excess profits taxes
2. Rejection of sales law because
of it's unpopularity with consumers.
5. Increase in present 10 per cent
tax on corporation net earnings and
moderate, possibly graduated, tax
on undistributed earnings.
4. No increase in normal taxes on
individual income, but reduction of
surtaxes on large incomes and an in
crease in the amount OF incomes eX-
empted from taxation.
5. New excise taxes and increase i'll
the tax on such articles as tobacco.
There will be no refunding opera
tons during the coming year. Con-
gress will make evident its determi-
nation that the burden of the war
debt shall be passed along to future
generations and that the floating debt
shall not be retired from the proceeds
of taxation as rapidly as contempat-
ed by the treasury department, SIM
ply by keeping the revenues down to
so low point that no funds will be
available for this purpose. Extensive
refunding operations will be taken in
1923, when the victory notes mature,
the republican program being to ex-
tend the payment OF the war debt over
a period of from forty to sixty years,
instead of paying them up in twenty
five years as contemplated by the sec
rotary of the treasury department.
Flat Tax on Corporations.
The belief that the substitute for
the excess profits tax will be a fiat
tax or net earnings of corporations
plus a moderate tax on undistributed
earnings is gaining strength among
number of influential members of
the committee. Some have advocated
the present normal tax OF 10 per cent
on corporation earnings and the elm
nation of the excess profits tax with
out any tax on undistributed earnings
as subtitute. Others, including Rep
resentative Fordney, chairman of the
committee, have inclined toward a
fiat tax of IS or 10 per cent as sub
stitute for all taxes on corporation
earnings. Still others have advocated
only tax on undistributed earnings
and the payment of the normal tax on
dividends from corporation stock by
the holders OF the stock, instead OF by
the corporation itself, as at present.
No Change on Small Incomes.
1t has been estimated by the treas
ury department that 10 per cent fiat
tax on net earnings of corporations
would produce as much revenue as the
present normal tax of 10 per cent plus
the present excess profits tax.
In order, however that the undis-
tributed earnings may not escape tax
alton entirely the probable outcome is
that there will be both a fiat tax and
tax on undistributed earnings. The
present 10 per cent normal tax on cor
poration earnings probably will be in
creased, possibly to as much as IS per
cent, and a moderate tax on undis-
tributed earnings added.
A tax of 20 per cent on undistribut-
ed earnings has been under discussion.
There is not the slightest chance
of any increase in the normal tax on
incomes of individuals, apparently.
Action of this sort would not be rel
ished by the general public and the
political effect would be injurious to
the republican party There is consid-
cradle sentiment for an increase in
the present exemption of $1,000 for
single persons and $1,000 for those
who are married. The present sur
taxes on large incomes have been gem
orally criticised 1t is probable that the
entire scale of surtaxes will be revised
If this is done there may be increases
in the lower brackets of the surtax
rates.