The daily times., 1921-08-03
DAVID LAWRENCE
. DISCUSSES TAXES
IN VARIOUS FORMS
PLAN ADMINISTRATION
For Their Reduction Laid Be-
fore Congress. Democrats
Charge Republicans Want to
Reduce Taxes on Big Busi-
ness and Place it on the
Small Consumer.
PLAN ADMINISTRATION
(By David Lawrence)
Copyright, 1921, by The Daily
TimeSl

Times)
Washington, August 2-Taxes the
biggest political and economic issue
before the country-at last holds the
center of the stage here. After five
months OF study, the Harding Admin
istration has finally laid upon the
legislative tables of Congress the
first concrete suggestions as to how
the money shall be raised to run the
government and meet past obliga-
tions
Any one who submits tax pro-
gram first must bear the brunt of
criticism but Secretary Mellon has
not suggested a rigid scheme. Should
Congress devise a better way to raise
$4,000, 100000 which is the amount
of the budget, Mr.. Mellon would be
the last to object. Similarly, the Re-
publican leaders who know that the
future of the party at the next con-
gressional elections a year hence de-
pends upon the kind of taxes impos-
ed are now put upon their mettle to
frame a better tax program if they
can.
| Democratic members of the Ways
and Means Committee are naturally
opposed to the suggestions made by
the Republican secretary of the
Treasury. THE new program" says
Representative John Garner of Texas
lis nothing more nor less a transfer
of the burden from those best able to
pay to the masses least able to pay"
! To support that view Mr.. Garner
points out that while Mr.. Mellon has
suggested that taxes on soda water
and ice cream be repealed, nothing
is said about carbonated beverages
and bottled soda waters, the manu-
facturers of which will not be able
in his judgment to compete with
soda fountains if taxes are repealed.
He adds that there are sixty or sew
enty other nuisance" taxes which
the Treasury does not offer to repeal
such as taxes on amusement, moving
pictures shows, taxes on medicines
etc. Mr. Garner declares these are the
taxes which the masse must pay and
lyet the Treasury would repeal the
high surtaxes on incomes above 500,
0O6.
Little objection is expressed to the
taxes on tobacco manufacture on the
theory that the tax will be absorbed
at the source without extra cost to
consumers And while the extra cent
of postage looks like an easy way
to raise a lot of money, members of
iCongress feel that every time the
masses write letters they will re-
member that taxes went up instead
of down under the Republican ad-
iministration. 1t is politically bad
tax though economically sound.
The suggestion that every auto
mobile owners be taxed ten dollars
may not prove popular but President
Harding himself stands back of that
proposal and drives home the argu-
llment for it by saying that if the peo-
pie who drive cars want the govern
ment to keep on aiding the states by
lpaying half the cost of building road:
lthey ought not to object to paying
D something directly for that purpose
AS for the taxes on bank checks
f lthis probably will be the least fell
: of all for the tax will be absorbed
mostly by business concerns as rela
/ ltively speaking the masses do not us'
$ tmany bank checks.
RI The repeal of the excess profits
-Itaxes is a campaign pledge. From tn
I tstart it has been doomed. 1t ism
THAT the excess profits tax brings il
imuch money but that its effect OF
D business incentive has been almos
disastrous. In place of the excess in
\ Icentive has been almost disastrous. L
IN naCa 81