Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1922-01-20
Friday Morning. january 20. 1922.
Big Interests Escape Over A Billion
Id Taxes.

To the oft-repeated cry that the Tax
Revision bill recently passed soaked the
rich and oppressed business" Representa-
tive James A. Frear. Republican. Of Wis
consin, in a recent address reviewing the
main features Of that bill showed in detail
that the multi-millionaire and profiteering
class by that enactment and the failure to
enact other proposals had deprived the
government Of $3.50. SOC, 900. which rep
resents the benefits they receive in escap-
ing taxation to that amount. Mr.. Frear
said
Let US briefly review a part Of the
program put through Congress during last
session.
First. The excess-profts tax has been
repealed. as demanded by these interests,
or 'blocs. with loss to the Treasury, even
during poor Blu mess conditions Of 1920, Of
$450.000.00O annually.
Second. Surtaxes on great incomes
have been reduced from IS per cent to so
per cent. with an estimated loss Of about
$6i.500. 900 annually, although the propa-
eanda demanded greater reduction than
that allowed by the Senate. to which rate
Of so per cent the House agreed.
Third. All luxury taxes have been re-
pealed. with further loss to the Treasury
Of about $50 100000 annually.
"A total estimated reduction in revenue
receipts Of approximately $4,000, 900
results from these three sources alone, or
an amount equal to rs per cent Of all
estimated income contained in the 1921
revenue bill passed during the present
session, notwithstanding no reduction &C.
Cured in the $24.000,000,OO0 national
debt nor has any provision been made to
that end.
Some efforts to increase the inheritance
and Gift taxes occurred in the Senate, but
Notwithstanding we could have increased
inheritance taxes over $200.0O0.000 an
nually. which would have still remained
below English rates today, the attempt
was blocked-not by any agricultural bloc,
however was killed in conference
under plea that any inheritance tax in
crease was another attempt to soak the
rich Practically as much more could
have been received from gift taxes. but
that, too. was prevented by the same in
terests.
Attempts to increase the corporation
normal tax from 10 per cent to 10 per cent,
as proposed by Secretary Houston in his
l020report, were defeated and also blocked,
but not by the agricultural bloc. and only
2 IL per cent normal taxes were added to
meet the promised Treasury deficit. This
Is only one-half the increase recommended
by the Senate. and IL 1-2 per cent rate
is only 40 per cent of the 80 per cent
normal corporation tax OF Great Britain
today. Secretary Houston's 10 per cent
rate would have raised $50. 900, 900 more
annually and would have helped meet the
loss Of $3.50. 900 900 caused by the ex-
cess-profits tax repeal; but the Senate
amendment was rejected under the cry
that II would soak the rich.
"A proposal to tax undistributed profits
Of corporations estimated by Secretary
Houston in his 1920 report to bring $780,
100000 annually was also blocked. but
not by the agricultural bloc. and was re-
jected with slight consideration. This tax
under ordinary conditions would bring to
the Treasury over $500. 900. 900 annually,
based on estimates submitted by Secretary
Houston. but the proposal was rejected
r because 1t was again distorted to mean
soaking the rich In other words, the
following is offered as conservative esti-
mate Of what the 1921 tax bill might
reasonably have brought to the Treasury
but for the constant blocking Of legislation
by the cryit soaked the rich and oppressed
business"
Here are the items given by Mr.. ear !:
Excess-profits tax repealed. $3.50, 900. 900 I;
reduced surtaxes on income. SCI. 500. 900 /;
luxury taxes repealed. 100000 in
heritance taxes. 5000 Y000. 900; gift taxes.
$780, ZOO. 900; undistributed profits pro-
posals rejected 100000; corpora
ton normal tax credit added Of 2 1-2 per
cent. ill000. 900; total. 81. $50, 100000.