The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-03-02
THE FARM LOAN DECISION.

THE FARM LOAN DECISION.
The United States supreme court
has sustained the validity of the farm
loan law and thus restored the finan-
cial standing of the farm loan bonds
which had been called in question.
Probably as a result or the courts &C
ton there will be a rush to invest in
these bonds, owing to the attractive
rate of interest they bear and the fact
that they are free from taxation.
The money that will be thus invest
ed is money that is needed in carry
ing on the business of the country. but
people cannot be prevented from
evading taxation when legitimate op-
portunity offers. There are few if any
forms of taxation that are not evadei
outside of the tax on land, and this
levy frequently is manipulated to the
advantage of certain interests.
The existing situation as regards
the question of taxation should serve
to direct the attention of congress to
the importance of devising a system
that will rest equally on all. one that
cannot be escaped and one which will
be a certain producer of revenue
Such a system is embodied in the pro-
posed sales tax.
The plan to shift the tax from ex-
cess profits to other similar forms is
evidently evolved to meet the fact that
there are to be no excess profits to
amount to anything from now on. and
this new legislation aims only to take,
if possible, more enterprise out of
business.
Nor does reducing THE surtaxes
from 70 per cent to 40 per cent affect,
in the least degree, the switching of
surplus Incomes put of tax-exempt Sc
curities and back again. 1t seems
foolish to say. as the account from
Washington does. that this will effect,
or it is hoped will effect, a change of
Investments of wealthy persons. from
free securities. which they have
bought in large quantities in recent
years to escape the heavy taxation
No investor will sell his tax-exempt
securities.
One of the arguments put forward
for this tentative plan is that it evil
depees 1.-The possibility of cutting
down war taxes to the extent of more
than $3.50, 100000, without providing
for any new principle of taxatien, such
as the various sales taxes that have
been proposed" This does not ap-
pear to be a good argument. Why
not adopt new principle of taxation
| il it cuts out all the evils and errors
of the old principle. which has been
tried and found wanting? Why not
introduce a principle which we call
new, but which has been tried in 9TH
err countries and proved eminently
successful, and which has in it's favor
simplicity. certainty. ample yield, and
| justice for the whole community?
Why do observation-disclosures persist
in clinging to proved fallacies in the
tax system, and driven by public opin-
ion. ana failing to get revenue under
one set OF errors. proceed to promuI-
gate and to endeavor to put over, an
other set, full of pitfalls, intricacies
and injustice.
A clear. clean, straight-cut and
abuudantly effectual method of solv-
ing the tax problem, on businesslike,
fair and honest lines, is presented in
the tax on gross sales. The country
is for it, as far as the country has iu-
vestisated the taxation question at all.
!
! A statement by the department of
labor shows that while wholesale
prices OF s27 selected commodities fell
off 6 u per cept in January. as COM