Perth Amboy evening news., 1923-02-10

lila mass fSp'
10-"When will taxes be reduced
The problem is uppermost in the
mind of the American business man
and investor as he figures his re-
port for 1922.
To get the answer Roger w. Bap-
son ,statistician has spent a week
In Washington studying the taz
situation. His first hand findings
and unbiased report ia of vital in
terest
Culture taxes" says Mr.. Babson,
depend In part upon future ex
psnditures. The figures for the past
yeas on this score, at least, are very
hopeful. Whatever criticism may
be made Of the present administra-
ton is must be admitted that 1t has
sxerted continuous effort to reduce
expenditures. An honest attempt ia
being made to introduce and per
ate a budget system. At the confer
ence OF bureau chiefs. held recently
at the Continental Memorial hall
come 500 men met to affect further
economy in the operations OF the
government business.
"Fixed charges, interest rates. and
previous obligations, of course, can
net be changed. and in spite Of the
NDlGH0ld WO1h 0Oh0 W S0% w 80
current expenditures, the expenses
Of the government for 1929 reached
a total of $3,795, 02,4e9.s0. Nearly
n billion of this amount vas paid
out as interest on the public del IS
such as Liberty Bonds and other
outstanding securities in the United
States; 1858. 10000 was used in pens
SION to soldiers or their dependents
Of the war of 1912, Mexican war,
Indian war, Civil War and Spanish
American war, while $3.50 100000
was paid for compensations, caee
and training Of veterans of the
World war. Approximately $500
000,0 00 went for the army, and S41o,
10000 for the navy. About fifty
per cent of our total expenditures
go to the payment of interest, sinK-
ing funds, pensions and the relief
to veterans.
During the fiscal year of 1922,
the government collected S4,1O9,-
1~04,150.94. Present prospects, how
ever indicate that no such amount
will be collected in 1928. The EX-
cess Profits Tax has been emoved
and general business is not as pro-
porous and therefore will not yle'f
as much in taxes as in preyio Is
NGdIS, 10 lllCCJ Was
President Harding has earnestly re-
ouested that expenditures be cut ny
$4,000, 900 more,
eff we look at the United States
as we would a corpora
ton there is no cause for alarm.
Expenses have increased, to be sure,
but expenses have increased in al
businesses. On January list, 1898,
we had in the United States in g9l1
s3,ss3,475,616, about forty five per
cent of all the gold in the Wor'u
OF this, over three and one-qparLei
billion Is held in the treasury mosts
in the form of bullion. II we 10 iK
al the ledgers. we find that $780,
600 taxpayers and 101,300 CORPORA
ions contributed, $2,06s,12S,192 60
in 1899. While only $s56'44s'-
3s7.1s was received from customs
and duties.
"Further study indicates that the
profile mduring the next few a
is not one of trying to decrease the
pres mt budget, but rather OF try
ing TO hold 1t where it is and Keep
it from going much higher.
'Unless a miracle happens, some
sort of bonus bill will be passed In
1894. II not passed with the Presi-
dents consent it will probably be
passed over hts 1eto. This will call
for a huge additional sum of money.
Then there is a. tremendous road
building program. the proposed ma
tinnalization of coal mines and the
demands upon the treasury by the
Farmer Bloc.
when ! talked with financiers re-
xarding possible measures of taxa
ton to meet these additional expen-
ditures and proposed increases in
our national budget, the suggestions
are as follows:
ar A Sales Tax. (2) A tax on
Light Beer and Wines. (3) Further
Customs and Internal Revenues.
(4) Collecting from Europe the $780,
ooA,0 5000 owed us and. (5) The
Restoration Of the Excess Profits
Tax.
'The keener students OF taxes al
most universally recommend the
Sales Tax. but politically there seems
to be little chance OF the new Con-
gress putting IL through. A tax on
light beers and wines at the present
time is certainly out of the question.
Both custom and internal revenue
taxes are as high as the pull lie can
stand. Hence. by the process of
elimination the political leaders
strenuously refuse TO cancel the Eu-
ropean debt for fear of the re-enact-
naent of the Excess Profits Tax.
Their fear in this reg4rd lie well
founded mt from a. DureiV selfish