Palatka daily news. [volume] (Palatka, Fla.) 1919-1994, 1922-10-11
WHAT THE DEFICIT MEANS

More taxation in addition to
higher tariff, with an unacceptable
increase in the cost of living, is the
prospect with which the country is
confronted as a consequence of the
deficit of $65O,OO0,000 that has ac-
cumulated since the republican ad-
ministration made its claim of big
surplus at the end of the present fis-
cal year.
Already experts of the treasury
department are engaged in the task
of determining what objects and sub
iects 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 increases
in the present rates of taxation on
incomes, estates or inheritances, or
whether new sources of revenue shall
be tapped.
Members Of the republican admin
istration are fearful of the results
of the predicament in which they
find themselves in the midst of the
congressional campaign. They have
concealed from the public as long as
they could the remedy which is neces-
sary to cure the evil.
Now they are forced to confess
that instead of a comfortable margin
of receipts over expenditures there
will be a huge excess of outgo over
income. This disclosure skaters all
their claims of Savings" and "econ-
omies," which they invented for use
in the present campaign.
Republican orators and other de-
tenders of the Harding administra-
ton are now deprived of one of the
arguments upon which they put their
greatest dependence. The truth is
out, and instead of making a baost
of the fictitious surplus they will
have to make excuses 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 in
creased, with the result and the SEN
sation just the same to the taxpayer
in either case. Moreover, the old
fight over the excess profits taxes
the high surtaxes and the sales tax
will be renewed to the great discom-
future of the Harding administration
and the republican congress.
If republican mismanagement of
the governments finances requires
the imposition of new or additional
taxes, tn democrats in congress will
demand that the levy on excess prof.
its be restored and the rates collect
ed on the incomes of the very wealthy
be augmented The republicans will
oppose this plan, because the billion.
aires, individuals and corporations
that are supporting the republican
party and its candidates will Object
to it. Repeal of the excess profits
taxes and reduction of the higher
surtaxes were part of tn eprice paic
by the republican administration fol
the assistance of these billionaires.
With the eyes of the whole coun
try upon them land the minds of thu
people enlightened as to what hap
pened in 1921 with regard to the ia
vors the republican congress bestow
ed on the possessors of enormous
wealth, the Harding administration
will have to battle once more to saw,
its Millionaire friends and supporter
from sharing any of the new burdel
and to make the small taxpayer pea
it all. 1t is that ordeal the pseudo
leaders in congress foresee they vii
have to undergo again.
The promoters of the sales tax
that scheme for loading all taxation
on the masses, will have a new in
ming. They will offer their device a
a certain recipe and doubtless vii
n, have more votes for it than the.
Gould muster heretofore. The publ
! 5 become pretty well acquainted
4 ~ s object of the sales tax sine
III -s%t proposed. They know i
ss serve 6 a practical ex
g every article
AlSsed by th'
~fonsates
ssE the nethe
oaSo cost $500 y,
,lroe,i IS $3.50 .ses1''e
sorssfs -