San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-03-18
TAXES TO Be
BIG JOB FOR,
NEW CONGRESS
Amendments to Constitu-
ton Limiting Tax Powers
to Be Popular.
G. O. P. LIFE AT STAKE
Must Lift Burden or Be
Handicapped in Next
Election. IT,,
G. O. P. LIFE AT STAKE
BY ROBERT t. SMALL.

w ~. S's
Backed by the business interests of
the country and carrying a wide popu- |
lar appeal, an amendment to the Con- |
stitution is to be introduced in the |
next, Congress limiting the amount of
income tax which can be levied
against an individual or corporation.
1t is claimed now that heavy taxes
are choking industry. The recent
business revival after the serious per-
iod of deflation, has been growing
steadily despite the burden of taxa
ton ahead, but there is no doubt that
the income tax returns filed last
| Thursday have had a SOLDERING influ
ence on the heads of corporations
reaching from coast to coast.
Business men and salaried men have
realized that another year has gone by
without any sort of tax relief. They
found the states in increasing num-
Der falling in with the government
plan of levying income taxes. The
state levies have been mild, of course,
compared to the national tribute
which business and individuals must
pay, but they recall that the national
income tax started in much the same
way only to leap in 1917 to q stagger-
| ing sum.
Harding TO Hear About 1t.
President Harding has worked dill
! gently to bring down the total of the
national budget, but his efforts thus
far have not been reflected in the ma
tional tax bill and on his coming
trip through the country he is likely
to hear much about the tax burdens
the people are bearing That COM
plant is likely to be the high spot in
the presidential tour, for Mr.. Hard
ing is said TO be more DESTROYS of hear
ing what the country is thinking than
in telling the country what he thinks.
Politically. as well as economically,
it is admitted that the most important
legislation to come before the next
session of Congress must deal with
taxation. Unless the income tax re-
turns to be filed a year hence can
show material reduction in the to-
tai TO be paid to the government by
the people there can be no doubt that
the Republican party will 60 into the
presidential campaign under the most
unfavored auspices. 1t will not suf-
flee to tell the people about great
Economies in government unless these
economies show in a reduced tax
bill.
Efforts by Congress to reduce the
rates of the income tax law will be
met with the usual opposition by the
Treasury Department experts who pro-
tested even against the slight cuts
made last year and the lifting of the
so-called nuisance" taxes on soda
water, ice cream and supposed "lux-
uries" in dress. But with their po-
litical lives at stake, the Republican
leaders are likely to work hard to
bring down the burden borne by the
people for the last six years.
Amendment Would Pass.
The proposal of a constitutional
amendment to limit the powers of the
government in the imposition of indi-
vidual and corporation taxes Is cer-
tain to be popular one and il a
resolution submitting such an amend
ment to the people should be passed
by the coming Congress, its ratifica-
ton by the states would be prompt
and unanimous. There is no doubt
that such an amendment would bring
the dear old constitution back in high
favor with all sections of the people
be they dry or wet
There has been no draft Of the
amendment as yet by the business mer
who will be instrumental in having il
introduced. 1t is not to be doubted
however, that there will be quite ,
scramble in both Senate and Hous,
for the honor of introducing such ,
popular piece of legislation. In out
IL line it is proposed now that tn,
amendment should limit the powers o
y the government to per cent or les
Of the net earnings of an individual o
d corporation.
:: Such an amendment would severel
cut down the income OF the govern
ment as now gained through the in
come tax law which still reaches a
y high as so per cent of net incomes o
g individuals.
Farmer Blocked 1t.
1t is proposed that in lieu of tn
direct income taxes there shall be
general sales tax. All suggestions 10
sales tax in the last Congress wer
blocked by the farm bloc. The farm
er thought it was aimed at him. II
figured he would have to pay a sale
tax on all he sold and then pay ar
other sales tax on all be bought. TIL
farmers general position has bee
somewhat ameliorated now, howeve
and it may be that next winter h
will be in a more receptive mood as [
the sales tax idea.
Some idea Of the tremendous ia
burdens now being borne, may be ha
by the study of national, state an
county figures. 1t is shown by GO
eminent statistics that the general Ia
bill today is no less than IA per cer
Of the gross income of the nation. Fe,
eral, state and county taxes for 49,
will amount to something like $500
100000. whereas the highest estimate
national income is 100000 000, 900.
In the revision of the tax laws to
proposed at the forthcoming sessic
Of Congress. another effort will
made to differentiate between earn,
and unearned incomes. This will i
clude an effort to exempt all i
comes of $4,000 and Under. Abo'
that sum it is proposed that the u
earned incomes be taxed Mt a Snu'
higher rate than earned.
n Another taxation effect will ha'
TO do with tax exempt bonds Of sta
and municipalities. There is gre
complaint now that the income I,
law is driving money out of indust
and into tax exempt securities. U
questionably this is one Of the mo
serious fiscal problems before the cou
try today.
From any and every angle II
y plain that the next Congress will be