The Topeka state journal., 1921-03-04
our GROWING DEBT.

penses exceeded revenues in February
by more than s5S,o0o,o0o. This show
ing probably indicates a decline in
revenue receipts. rather than an in
crease in expenses. This has been
generally expected.
There has been a heavy decline in
profits and incomes from which the
treasury has been receiving the bulk
of it's revenues. The new congress will
be confronted with the necessity Of
devising a plan for bringing in more
money. The existing system is prov
ing a serious burden to both corpora
tions and individuals without bringing
in enough to meet the governments
requirements.
Other forms of taxation having
been pushed to the extreme, It would
seem that congress should give the
gross sales tax. now in vogue in such
countries as France. Germany. Can
ada and the Philippines, a trial here.
The sales tax is the most dependable,
direct and equitable that could be de-
vised and inadequate revenues to
meet government expenditures may
force it's adoption.
If business were relieved of the
grabs after profit and capital, were
released by fair income tax levy ac-
companied by a gross sales tax, the
whole country would spring once more
to work out it's business salvation with
American energy and hopefulness.
The alternative of taking Is per
cent of the earnings of corpora
tions, offered by Representative Long
worth, will not produce the money.
Reliance on this course is clinging
to a rope of sand. Earnings of
corporations. on the average, for the
last half of 1920 and the first half of
1921 will be negligible. Instead Of
profits very large part of the capital
invested in business made losses. The
tide must turn some time, but it is an
optimistic guess that puts the date of
turning in time to help the govern
ment, whose outgo is assured but
whose income is imperilled.
Doubling the receipts from the tar
iff is another legislative optimistic
guess, which has little chance of frui-
ton.
There is no other way to get the
money, aside from the sales tax, but,
fortunately, it is the most excellent
way-a way fair to all, tightening the
load SO that it will not be felt and dis.
tributing it equitably. The collection
is simple and easy, and the yield large
enough to furnish the amount needed,
and more.
The New York Herald says:
'In the condition which confronts
the country there is only one sure
source of revenue in the volume that
will be required by the stupendous
financial needs of the government. 1t
is the so-called sales tax. The world
over, this tax has met every test as a
revenue producer. AS industries, bust
nesses and individuals must buy their
supplies and spend money on their
needs whether they are making prof
its or not, whether they are growing
richer or poorer, there is always in the
sales tax the sure source of revenue
upon which the government must be
able to count, absolutely.
Furthermore, the sales tax has the
Incompatible merit of collecting from
the average individual of the great
mass of the public, a quite negligible
amount, altho the aggregate from all
is colossal. The man who spends
100000 a year on his ordinary living
will contribute to the treasury even az
so low a sales tax rate as 1 per cent
the comfortable sum of $1,000. And,
of course, the man able to spend as
much as that also will be paying a
very heavy income tax. But the man
spending $1,000 a year on his ordinary
living will contribute at that rate only
$40 to the treasury, whereas now per-
haps his theater ticket taxes alone
count up as much as that