The Birmingham age-herald., 1923-10-21
NEED FOR REDUCING B 1 G T A X BURDEN
(Houston Post)

President Coolidge Is repre- scented as undecided yet whether he will recommend legislation looking to the reduction of taxes. The president should not hesitate In making his decision. There was a surplus of about $500, 100000 in the treasury at the end of the last fiscal year, and the prospective surplus at the end of the present fiscal year is $500, 100000. There ought not to be any question about whether taxes should be lowered when government income exceeds expenditures. If the economy pro- gram of the governmnet is bearing fruit. the people should be given the benefit of it.
 And in the revision of the tax measures, the income tax schedules should receive attention first. The fallacy of the theory of shifting the burden to the rich by imposing high surtaxes has been pretty we'll exposed. Possessors of large in- comes have shifted their invest ments to tax securities un- til the tax-dodging of the ultra
 
 dal. A wealthy man who died a short time ago leaving an estate of s67000,0o0, had more than s4o.- o00,000 of 1t tied up in securities exempt from taxation.
 Another effect of the attempt to saddle the heavy end of the tax on the rich has been the handicap to industry, resulting from the withdrawal of capital for tax-ex- empt investment. Funds that un- der ordinary conditions would have been reinvested in business, have been placed elsewhere, and slowing down of business has been inevitable.
 By overtaxing business, and taking more out of business than pthat source of taxation could af- ford to bear, the tax law has de- featedNits own ends. A more even- ly distributed tax. which did not tend to discourage business expan- sion. would bring in more total revenue with less hardship upon the taxpayers.
 In the final analysis, the mass of tho PoOPAS 6i S PdyiA6 luo ldA, anyway. It need not be assumed for minute that the rich are ab- sorbing the tax laid upon them. They are either passing 1t on to the public or lodging 1t by the tax-exempt security route.
 As for these surpluses that the present schedules leave, in con- junction with the tariff, which is but another tax upon the con sumner, we may be sure that there will be interests clamoring for appropriations to more than eat them up as soon as Congress meets. Instead of distributing the surpluses through appropriations for unnecessary projects. the peo- pie will be better served by pre- venting surpluses through a lower tax rate.
 The situation Is summed up ad- mirably by the Kansas City Star, when 1t says: "The prospective surplus. in revenue will give the opportunity to Tighten this drag on business that has stupidly been imposed. and at the same time to ease the situation further by re- placing the high surtaxes by e small turnover tax that would pro- duce large revenue without inns posing a burden on any family. When man Is carrying a load 1t makes all the difference In the world whether he carries it by one hand or on his back. The load that, carried by one hand might pull his shoulder almost out of joint, may be carried with ease on his back. Congress cannot make the country rich by Legislation. But it can distribute the load car- ried by business in such a way as to make it more easily borne. That will bring more industries, more jobs. lower prices"