The New York herald., 1921-07-04
PLANS TAX REVISION
NOW; TARIFF LATER
Senator Watson Declares Eff
fort Will Be Made to Force
Speedy Action.
MOVE GAINING SUPPORT
Necessary for Business to
Know What to Expect Before
Revival Can Come, He Says.
MOVE GAINING SUPPORT
Special Despatch to THE New YORK HEfAap.
New York Herald Bureau,
Washington, ID. C., July D.

Special Despatch to THE New YORK HERALD
New York Herald Bureau,
Washington, ID. C., July ..
The Senate is very likely to reverse
the present programme of fiscal legisia'
ton and make an attempt to force re-
vision of the revenue laws in advance
of completing tariff revision. according
to statement made to THE New YORK
HERALD to-day by Senator Watson
Committee he Is in a position TO influ-
ence the legislative programme very
materially and he proposes to bring
about the revenue revision first If pos
sible
Senator Watson never has wavered
in his belief that the prosperity OF the
country is dependent far more upon the
benefits arising from tax revision az
this time, than from changes in the
tariff schedules. Both are essential, IN
his Judgment. but the situation is ao-
normal and the distortion can be cor
rected far more quickly he says, by
getting RID of the present unscientific,
unequal tax system.
Il have said all this to the Senate
and have talked il over repeatedly
among my colleagues" Senator Wat
son said, land many of them have
stated that they agreed with me-
But the thing | wish TO emphasize
Is that unless we do tackle the revenue
problem in advance of completing the
revision of the tariff the people of the
United States and the Government are
likely to be deprived for many months
of the benef1tq of tax revision
THAT brings me to my point, namely,
that the taxpaying public, which IN
cludes poor and rich alike. should be
able to know months before the begin
ming of the calendar year just what
their tax burdens are to be and be able
to govern their business plans accord
ingly.
but if we attempt to complete revi-
sion of the tariff In advance Oh cor
recting the admitted evils now inherent
in our hastily prepared unscientifc tax
system we cannot possibly write a
proper tax law in time for 1t to be or
the greatest good to the greatest num-
ber.
II am basing this on performances
m part as to tariff revision. For in
stance, 1t took five months to complete
the Underwood tariff law.
tHere are the dates showing how
progress was made in that revision
April 16. 1913. introduced in the House
April 81, reported by the Ways and
Means Committee May 8, passed by the
House May l6. reached the Senate and
referred to the Finance Committee; July
IL. reported back TO the Senate; Sep
tember ., approved by the Senate; Sep
tember 20, the conference report, agreed
to and the bill sent to the President
October 3. signed by the President,
This does not take into consideration
the time spent tn hearings by the Ways
and Means Committee.
THE present tariff bill. il seems to
me, Is likely to take even longer than
the Underwood bill for its completion IL
II is to be written properly. 1t has
taken longer to prepare it, We know.
too, that while you may write your tariff
as scientifically as possible. yet because
OF abnormal conditions in the world the
uncertainty in exchange rates and the
general topsy turvey conditions existing.
we cannot be altogether sure of its ef-
fects.
III we postpone revenue legislation
until the tariff is completed We may be
unable TO write the tax law until some
time In November. Meantime the busi-
ness world halts because 1t does not
know the outlook for the business year,
and until such knowledge comes into its
nossession we cannot expect a revival of
business.
'The tax bill should be placed before
the tariff bill and the taxpayers given
TO understand long before the close of
this calendar year what is TO be eX-
pected in the way of tax burdens In the
future"