Evening star., 1921-08-28
BY THOS. n. MARSHALL.
Former Vice PFesiAent sf tho
United States,

BY THOS. n. MARSHALL.
Former Vice Presiaent sf the
United States.
7 FULLY appreciate the dimcul.
ties Of the administration with
reference to a revision OF In
ternal taxes. It was apparent
that to increase letter postage from
two cents, which furnishes . sur
plus revenue, to three cents, and at
the same time to permit magazine
postage to remain unchanged. cost
ing as It does the government mil
lions Of dollars in excess Of tho
amount received for carrying II.
would cause widespread dissatis.
faction. No wonder Secretary Mel
Ions suggestion was rejected.
The proposed consumption tax.
however fair in principle 1t might
have been. was calculated to sub
ject the government to the charge
Of shifting tax burdens from the
rich to the poor. Objection to 1t
might have been lessened II there
had been any way to frame the
law to assure ultimate consumers
that all along the line. from manu-
facturer to jobber. to wholesaler
and to retailer, much more than
the tax would not be added: but
the theory that each person han
ding the article is himself q con-
sumner and therefore entitled to re-
coup his losses. made pyramiding
OF the tax probable.
Then there was the argument
that a consumption tax is not in
proportion to property and earn
ings a fair distribution OF the ex-
penses Of government among the
people. A poor man probably eats
more than a rich man, he usually
has more children to feed and to
cl6the. and a consumption tax.
however fairly 1t might distribute
the burden among all the people.
would not distribute it in propor-
tion to the wealth Of the land.
I have always felt that part Of
the reason for Army and Navy ex-
penses was the preservation Of tho
vast wealth of our country. 1t has
seemed in the past that people
have not cared to make war with
the poor. Their desire has been
to overcome the rich and thereby
make tho expenses Of the war and
a profit besides. II. therefore. tax
alton could in some way be di-
vided SO that the ordinary expenses
of government could be paid propor-
tionately by a consumption tax and
the extraordinary expenses Of tho
Army and Navy could be paid by
a tax on the wealth of the nation.
graduated in accordance with the
amount of wealth each person pos
sesses. that plan might furnish .
fair and just way out. do not
advance this as q workable idea
in the present emergency. It IL
only suggested as. q feeler for fu-
ture consideration in the event 1t
survives.
However necessary and Justin.
able was the excess profits tax In
the war. 1t has outltved its emer.
gency. In my opinion its reten-
tion on the statute books would
not produce much revenue. The
state Of business 10 such that there
isn't going to be any excess profits
upon which to levy a tax. The
Congress IL doing we'll In provide
ing for it's repeal.
lido not pretend to be q financier.
but as q lawyer and q student Of
political economy gained distinct
views on the subject Of taxation.
These views cannot say arc
wholly correct in principle, but
there is something more than prtn.
ciple to be considered In levying
taxes. highly important as It is
that the principle be scientific. It
is Of equal Importance that tho In.
dividual citizen know just what
his tax 10 and on what theory It
is being levied. Take the uproar
about Mr.. Melons SO automobile
tax. Not being the owner Of, one
Of these bankruptcy producers.
saw nothing wrong with the tax.
But IL I had contributed to the
ability Of Henry Ford to purchase
Muscle Shoals. probably would
have felt that the government vas
singing out an item Of my prop
erty for taxation while permitting
my stylish neiGhbor who rides In
q handsome equipase behind q
span Of thoroughbred horses to 60
free. =.
have talked with many men
about Pullman fares and the taxes
on them. There is almost universal
condemnation, not because OF the
money that is paid. but Of the way
in which it is collected. No one
save q trafilo man can understand
the traffic system. paid IS sx-
cess fare from New York to Fort
Wayne, Ind. the other day. A man
on the same train going to Winona
Lake. Ind. paid no excess. Another
man left the train at Mansfield.
Ohio, without paying excess. It 10
not so much what we pay that in
stills discomfort ~ It is the feel
C-oo.o1.ate pr,