Evening star., 1921-07-23
HOW TOGET TAXES
IS REAL QUESTION
FACING CONGRESS
Revenue Cannot Be Decreas-
ed, But Burden Shifted, Is
Legislators View.
M0NEY-GETTING SOURCES
NOT so MANIFOLD NOW
Diminishing Incomes May Be
Deathblow to Excess
Profits Plan.
BY n. O. MESSENGER.

With the tariff bill out of the way
until such time as it shall come back
with divers and sundry Senate amend
ments. the ways and means commit
teemen will now turn their attention
to another big problem. the framing
Of new tax law. Upon this subject
there will be found as wide a division
OF opinion on methods of taxation as
upon theories Of protection and free
trade.
At the outset, the committee will be
confronted with the proposition of
now to raise enough money. and by
what plan, to meet the future ex-
penses OF the government, rather
than how to reduce taxes 1t is pretty
wen agreed that no material lessen
but only the shifting Of it from over
chafed shoulders to others. For
months. men in official life have been
gradually breaking this sad prospect
10 the publicTgetting the people into
inevitable.
One thing to be borne in mind is
that there will not be as many re-
sources subject to taxation as for
merly. Profits in business and incomes
as Wen Will show falling off from
previous years. The fact that five
million workers are out of EMPLOY
ment is an indication of a slump in
business which the tax gatherers will
encounter when they go questing for
revenue.
Half Billion From Tariff,
Inc new tariff law is estimated to
produce half a billion in customs du-
ties. 1t may and it may not. IL is
realized. but even il it does. where are
the other three or three and a half
billions to come from is the question ,
equally as important as the method
oy which it is to be wrung from the
taxpayers. Foreseeing a prospective
wide gap between the upper an
netner nscal garments of Uncle Sam.
the administration is practicing rigid
economy in expenditures, but with the
best Efforts in this endeavor there
must yet remain big margin Of dif-
ference
Whether there 10 to be proposed a
tax on sales will be the most botly
DEBATED question, great differences Of
opinion existing among the lawmak-
ers. regardless Of party. The problem
OF excess profits may settle itself in
the disclosure Of vast diminutior of
excess prohts in many directions and
total disappearance in others Levy
be like summoning spirits from the
Vastly deep: they may be summoned
but will they come?
1t remains for the Senate yet to de-
termine the legislative program for
the tarin bill and the expected tax
bill. as to which will be passed first
by the uppr body of Congress. Senti-
ment is said to be increasing in the
Senate in favor OF soft-pedaling on
tarin legislation. II the House shows
reasonable progress in sending over
the tax bill. with view to putting
the last measure ahead.
To Appease Public Demand.
II that course is adopted it will be
to satisfy public demand which at
present seems to be in favor of Con-
gress dealing with taxes first. Even
II the public cannot be given the re-
lief 1t expects. the mere act of Con-
gress doing something with taxes"
may serve. it is thought. to allay
popular irritation and ease up the
criticism of Congress.
And Congress. it may be said in
passing. is very sensitive on the score
of the criticism to which 1t has been
subjected in this regard. The present
feeling in Congress is said to be SYM
pathetic with the sentiment displayed
on the legend in the frontier dance
hall: Don't shoot at the pianist. he
is doing the best he can"
A fine spirit of cooperation 10 found
to be existing at the outset between
the Treasury Department and Con-
gress. and Secretary Mellon will work
in harmony with the ways and means
comminttee in setting up the frame
work of the new bill. The recon-
mendations of the Treasury Depart
ment and the ways and means com
mittee will be subject to the collective
judgment of the House and Senate.
when the bill gets into the Legislative
mill and what changes may be af-
fected there are of course conjectural.