The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-09-02
FIGHTS
THE TAX BILL

Washington, Aug 27.--In
final effort to defeat the new tax
bill. which passed the House on
Aug. 20, representatives Of or
ganized labor headed by President
Gompers, called on Congressman to
send the bill back to the commit
tee, that glazing inequalities could
be remcdied. The plea was ig-
nored.
Trade unionists will carry the
fight to the Senate, and it is pre-
dicted that a battle royal will be-
staged in the upper branch by a
group of progressive senator's be-
fore the measure is approved by
that body. $50
As passed by the House, the bill
makes no attempt to tax the loot
Of war profiteers. The tax on eX-
cess profits is removed, and the
surtaX, or extra income tax, on
swollen fortunes and great cor
porate interests is cut in two.
The exemption Of $4,000 for mar
ried men is increased to $4,000,
and the 5000 for each dependent is
increased to S4O0 In referring to
these exemptions, the organized
workers said:
1--WE are not deceived by the sop
thrown to the people in the form of
increased exemptions in the lower
brackets of the income tax. We
are aware that those who escape
trifle in that respect will pay
more heavily elsewhere.
Government tax experts them
selves have established that the eX-
cess profits tax is a fair and honest
tax because it is tax on ability
to pay. SO it is with the surtax
and the graduated tax on the
higher brackets of the income tax
and these should stay as iusc and
proper provisions.
at has been estimated that eX-
cess profits, above a reasonable re-
turn, pocketed by favored class
| during the war, totaled fully $751;
| 100000 1t is clear that to al
low this great tribute to favored
ones to escape while wage earners
are compelled to carry an added
burden, is an outrage.
"The country will demand an ac
counting if the present bill be
comes law. In the name of the
wage earners of America, as theil
| representatives, we make solemn
protest"
The bill not only permits prof
iteers to escape with their wa
loot, but it actually permits prof
teers to pay less taxes in proper
ton to the amount that they goug
from the people.
This statement was made b.
Congressman Oldfield on the floo
of the House. He presented fig
ures to support his claim that tn
flat corporation tax of 1914 pc
cent as a substitute for the exces
profits tax favored the extortion
ers.
The law maker declared tina
there is not an expert in the treas
ury department who will disput
the accuracy of his figures.
Under the present law corpor
alton with $4,000 capital stoc
is taxed 10 per cent, or $50, whe
it makes 5 per cent profit. Unde
the law as passed it would pa
II IL per cent, or $685." ne sale
| w IL " pei CSIlI pIOll
it would pay $25 more; when i
makes 8 per cent it would pay SIS
more; when it makes 10 per cen
it would pay $75 more; when i
makes Is per cent it would pay tn
treasury $47.50 more than tn
present law. Now, when the cor
poration begins to profiteer lit
tie bit more and snakes 20 pc
cent, it pays $340 less. When i
makes % per cent it will pa,
$1,177.50 less than under the pres
ent law.
"When it makes 33 1-3 per cen
it will pay $2,093.34 less than un
der the present law. When tn,
same corporation profiteers to tn,
extent of making so per cent OF
its invested capital, under the pro
visions of this bill it will pay
$4,285 less taxes than under the
| present law.
'In other words, the more these
corporations profiteer on the PEG
pie the less taxes they will have
to pay"