San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-03-15
Hint Dropped That Reve-
nue. Laws Will Be Re-
vised Downward.
WILL BE MADE ISSUE
Program, If Changed, VIII
Probably Include Sol
der Bonus.
By DAVID LAWRENCE

len people are making out their IN
come tax returns for this year and
paying the first quarterly instsllment
there comes from the presidential en-
tourage the hint that another effort
10 revise the tax laws Of America
downward is as inevitable as is the
next presidential campaign itself.
President Harding stands committed
TO such a course of action. He is not
satisfied with the present revenue
laws and the only opportunity he will
have before the 1924 campaign TO sus-
gest program Of change will be in
the December session of Congress
tins year. MIR. Harding's last com
ment on the present revenue act was
expressed in an address to both houses
Of Congress in which he said:
Taxes Burdensome.
1T would suggest insincerity il Il
expressed complete accord with every
expression recorded in your roll calls,
but we are all agreed about the III
culties and the inevitable divergence
of opinion in seeking the reduction.
amelioration and readjustment Of the
burdens of taxation. Later on when
other problems are solved, / shall
make some recommendation about re-
newed consideration of our tax pro-
gram.
Mr. Harding goes before the peo-
pie next year. Viii he put the whole
question up To the electorate and
make it the issue of his campaign,
formulating a program that can be
debated on the stump? The political
strategy of the occasion would natur-
ally be 10 revise the revenue laws and
stand on a record of achievement,
rather than of promise. especially be-
cause the Republican administration
will be on the defensive anyway and
il a new tax program can be put
through in the session beginning in
December. 1923. and adjourning some
time in 1924, making the changes cf-
fective with the calendar year 1928.
the orators will have something con-
crete TO boast about.
Men Of the political sagacity OF At
torney General Daugherty. who is
President Harding's right-hand man
when il comes to mapping out cam
paigns. believe the issue in 1924 will
be taxes, irrespective OF what has been
done by that date to change the ex-
listing laws.
VIII Hear ABOUT Taxes.
The significant fact is that the
President plans contemplate some ex-
preston on the subject of taxes. Sec
rotary Mellon Of the Treasury De-
partment, has been waging a cam
paign for the adoption of constitu-
tiOnal amendment aboliShing the tax
exempt security. President Harding
endorsed the proposal in his address
TO Congress in December, 1921, and
there is little doubt that the amend
ment will be actively before the state
legislatures while the 1924 campaign
is in progress.
1t is an issue on which radicals and
conservatives alike seem to have COM
bined in Congress. The radicals don't
like the idea of seeing wealthy folks
escape taxation by investing in state
and municipal securities and the con-
servatives feel that not only is the
government losing taxes to which il is
logically entitled. but that, as Mr..
Harding himself expressed it. the
drift of wealth into non-taxable Sc
curlties is hindering the flow of large
capital 10 our industries. manufactur-
ing, agricultural and carrying. until
we are discouraging the very activi-
ties which make our wealth.
Harding 10 Campaign.
IL by the time the election of 1921
is at hand, the proposed amendment
TO the federal constitution has not
been ratified. Mr.. Harding will be
found vigorously campaigning for II rs
one of the elements in his program OF
reduced taxation because. il the fed
eral government can tax the income Of
the many billions Of dollars invested
IN securities which at,present are free
from federal taxation, the Treasury
Department will feel warranted in rec
ommending a considerable reduction
In the tax rate
There is always, Of course. the pros
pect of an entirely new system of tax
alton. namely, sales tax. Mr.. Hard
ing was friendly to the idea during
ms front porch councils at Marion,
but some of his advisers insisted that
It was an uneconomic tax and he did
not fatly approve it during the cam
palgn. Since that time, however, the
President has looked with more favor
on the plan and he himself made the
that the soldier bonus be paid
out of sales tax.
Inc present administration must
gain face the soldier bonus problem.
with 1924 coming on. IL
the entire tax program were to be re-
vised il would be easy for the admin
Istration TO include the soldier bonus
in its plans and thus gain an i'm
portant element OF support than 10
argue for the sales tax as a substitute
for the present tax scheme without
making any provision for an adjusted
act for the soldiers and
sailors. r
\ Campaign Measure.
The present law will. OF course. re-
main unchanged for 1923 and probab-
~ for all Of 1924. Though Congress
could. if il chose, make new law af-
fecting the incomes earned in the wear
1924. which are PAYABLE during 1925.
the matter seems the more likely 70
appeal TO the powers that be as
measure.
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