Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-12
MORE TAXES

iugS in administration effected by
the budget system and General
Dawes efforts toward economy.
But now the stern fact is an
nounced for the first time that
there is a deficit of nearly three
quarters of a billion dollars be-
tween federal revenue and federal
expenses for the past year, and
that congress which meets after
election must devise some new fed
eral taxes or increase the old
taxes. Our advices from Washing
ton state that more taxation IN
addition to a higher tariff, with an
unacceptable increase in the cost OF
living, is the prospect with which
the country is confronted as a con-
sequence of the deficit of S650,000,-
900 that has ACCUMULATED since the
republican administration made its
claim of a big surplus at the end
of the present fiscal year. Already
experts of the treasury department
are engaged in the task of deter
mining what objects and subjects OF
taxation shall be selected for new
levies. Republican members of
the ways and means committee are
helping in the task. Thus far It
has not been decided whether the
additional taxes needed to expunge
the deficit shall come from in
crease in the present rates OF tax
alton on incomes, estates or inner
itarces, or whether new sources of
revenue shall be tapped. Members
of the republican administration
are fearful of the results of the
p~redicament in which they find
themselves in the midst of the con
g~ressional campaign. They have
concealed from the public as long
as they could the remedy which is
necessary to cure the evil.
Now they are forced to confess
that instead of a comfortable mar
gin of receipts over expenditures
there will be a huge excess of out
go over income. This disclosure
skaters all their claims of saw
ings" and economies" which they
invented for use in the present
campaign. Republican orators and
other defenders of the Harding ad-
ministration are now deprived of
one Of the arguments upon which
they put their greatest dependence.
The truth is out, and instead of
making a boast of the fictitious
surplus they will have to make ex-
cuses for the very real and very
serious deficit.
All this is bad enough, but it is
by no means the worst. New taxes
will have to be levied or present
taxes increased. with the result and
the sensation just the same to the
taxpayer in either case. Moreover,
the old fight over the excess profits
taxes. the high surfaces and the
sales tax will be renewed to the
great discontinue of the Harding
administration and the republican
congress. IF republican misman-
ageTnent of the governments fl
nances requires the imposition of
new or additional taxes, the demo-
Gratis in congress will demand that
the levy on exces profits be re-
stored and the rates collected on
the incomes of the very wealthy be
augmented. We are free to confess
in advance that the democratic de-
mands. even if granted, would not
be any efficient remedy for the
deficit. Larger surtaxes On in
comes will produce nothing except
to expedite the transfer of great
wealth to non-taxpaying securities.
That is going on quite rapidly al
ready. Increased surfaces on large
incomes will only speed up the
process and produce less revenue
instead of more revenue for the
treasury. Excess profits taxes
might and probably would produce
some additional revenue, but hardly
enough to meet the deficit. There
will probably be a revival of the
propaganda in favor of the sales
tax after election. In fact it is the
only proposal in sight by which the
treasury is likely to be filled to the
extent needed. The republicans,
however, even after election, will
be shy about passing a general
sales tax in view of a coming pres
idential election, because this is a
direct tax. Every one not only
pays his share, as is the case with
all taxation, but he knows that he
pays it, and how much he pays.
That 10 ,yhv conpresS is reluctant