The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-05-03
Excessive Surtaxes Take Capital From
New Business and Reduce Rev
enue of Government

( vate greed, is apt to overreach itself
Many transactions on which those
concerned would willingly pay a mod
crate tax are now simply being laid
aside and not effected at all because
of the intOlerable taxation to which
they would be subjected Others are
being so included in an artificial
roundabout, unsatisfactory way, so as
to avoid the full burden of the tax
The result in either case is a loss Of
revenue 90 the government and an
impediment to business.
1 have personally no doubt that sur
taxes imposed at a reasonable rate
would produce larger revenue than
do the excessive rates now in exist
ence. AS the rate of surtaxes is low
cred. the aggregate amount of income
subjecting itself to taxation will be
largely increased. A decrease in rates
will bring an increase in volume.
realize that not much sympathy
will be wasted by the rank and file
upon the plant of those in possession
of large incomes on the score of ex-
cessive taxation.
If the argument for a reduction of
those rates is to succeed, it must be
based not upon the plea of considera-
ton for the rich, but upon proof that
the existing schedule results in harm
to the country as a whole.
The proof has been given repeated
ly. SO far as know. it never has
been contested by serious arguments.
A democratic president and a re-
publican president three democratic
and one republican secretaries of the
treasury have advocated an adequate
reduction of our surtaxes and have
given reason for that recommended
ton.
Yet the evil of extreme surtaxes and
the country wide damage flowing
from it remain uncorrected. for the
slight modification effected last year
is no correction.
| would suggest therefore, that the
normal surtax be reduced by one
quarter and that all surtaxes be re-
duced by one third for the next fiscal
year and by another one-sixth for the
year after that
While such a reduction would have
a strongly beneficial effect in quicken
ing business. facilitating the flow of
capital and diminishing costs, it would
be found, I believe, that the total
revenue resulting from the lowered
rates as compared ito those now in
force need he effected to a relatively
unimportant extent only. and as far
as the tax yield from large incomes
and profits is concerned, feel certain
that the government would receive
more. rather than less.
am convinced that unless and I'M
til the glaring errors of our existing
taxation policy are remedied America
will fail short of attaining that de-
gree of prosperity and accomplishing
that measure of general well-being
which are open to a nation in whose
domain Astounding natural resources
are coupled with racial qualities that
in the past have found conspicuous
expression in zest for work. daring
enterprise and broad gauged achieve
ment.
And I am further convinced that tax
revision contains a good. deal less pol
itical dynamite than many of those In
public fife appear to think. believe
the people do not care by what meth
cd relief is obtained from an unpropi-
tious situation provided the relief is
effective and the results are beneficial
to them
New York. April 9.