Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-02-22
RebubHcanS W/0uld Gut
Government Expenses
'NiIH0n Dollars n Day
BY Harlem COLFAx
Lcased Wire Service to The Journal.)

WASHINGTON. Feb. 19.-Taxes,
rate, for that will hardly drop this
year, but in the total levy by con-
gress on the American people. The
high cost of government having
reached it's peak. is following the
trend of the times and is due for a
drop comparable with the drop In
commodity values and wages.
1--WE hope to cut the cost Of gov
eminent a million dollars a day." is
the way Representative Green. Of
Iowa, sums it up. Mr.. Green, rank
ing Republican member Of the ways
and means committee-the commit
tee which originates the tax laws
by virtue of Mr.. Fordney's absence
from Washington, is the committees
acting chairman. His committee ex-
pects to frame a new tax law soon
after the new administration comes
into power.
In his estimate of the proposed re-
Mr. Green is<not figuring on the
passage OIL proposed SOIOISI DOh
legislation. If such legislation is en-
acted, the plan changes. 1t is not
possible to pay two billion dollar
bonus and reduce the governments
revenues at the same time. Nor Is
he contemplating the passage of any
other law calling for an unusual ex-
penditure.
coi p Fo4 tha eoeepIe at the
present time ten. million dollars a
day. A year ago it cost, roughly.
thirteen million dollars a day. These
figures include the sums utilized to
reduce the floating debt.
Reduce Mine millions.
During the fiscal year beginning
law is. expected to apply, it is hoped
to bring the cost down to approx
mately nine million dollars a day. Of
that sum, it is estimated, about eight
million dollars will be spent in pay
ing the debts OF past wars-insur3,
States bonds, etc.-and for the army
and navy to safeguard the country
in the future. The other million
dollars day. in round figures, is es7
timated to be the cost or the civil
establishment.
The economic crisis from which
we are now emerging has hit the
United States treasury, along with
the private citizen. Because bust
ness suffered, government revenues.
derived from income and excess profit
taxes suffer. too 1t is estimated
year half billion dollars less in in
come taxes than it collected last
year. The excess profits tax, it is
estimated. will yield six hundred
million dollars less.
The economic crisis in these two
items alone, therefore, will reflect
cut in government revenues Of one,
But the excess profits tax, which
is estimated to yield billion and
quarter dollars. seems to be la ted,
TO go by the boards. IN It's place.
there will have to be found some
other way of raising revenue. Three
plans have been presented to the
ways and means committee:
IA general sales tax.
"A tax on Indistributed earnings
of corporations.
3-Some form of upward revision
of corporation income taxation. ,
Hold Consultation.
Soon after the present session Of
congress ends the committee will
meet and consider the situation.
Probably several months will lapse
DelOTe new DldH OIL . IdXdllOH l.
evolved. A new tariff bill also is to
be framed. 1t was originally
the higher tariff would bring
in half a billion dollars more. but
this figure lately has been whitfield
down to two hundred millions or
At present the tariff
brings into the treasury about three
million dollars a year.
The idea generally prevalent in
the committee seems to be t. make
Up. by some other form of taxation.
the money now being derived from
the operation of the, excess profits
tax. to count on the tariff for two
hundred million dollars more annu-
ally than it is now producing, to fig
ure on income taxes yielding five
hundred million dollars less than
last year and to cut the govern
ment's expenses by the difference
between the tariff increase and the
income decrease-three hundred mil
lion dollars. Roughly, that means a
million dollars day. .t...
Disarmament. Of course, would be