The Birmingham age-herald., 1923-12-18
THERE ARE TAXES AND TAXES

been frank and honest.
 
 THERE ARE TAXES AND TAXES
 If there is any criticism to be made of the tax-reduction program, it IS directed at the failure to perceive the fallacy of calling the same thing by different names, and then deluding ourselves that they are different. Every citizen would welcome reduction in his taxes, but the thoughtful and patriotic citizen would not accept such reduction at the expense of some necessary item in forwarding the functions of govern ment or carrying on essential public undertakings. The thoughtful citizen also would call spade spade, nor place undue emphasis on one bonus while permitting other bonuses to es- cape attention through the camouflage of another name.
 For example, what is the tariff, which admittedly wrings three billion dollars annually from the American consumer, who is also the American taxpayer, if it is not bonus given to big business? What is the high trans portation rate schedule if it is not tax upon American enterprise, which must be borne by the American con- sumer,> who is also the American tax payer? Nobody knows how great this tax is, but it amounts to many hun dred million dollars each year. Any program of price-fixing or rate-fixing becomes bonus when the rate is put at level so high as to permit a profit without the exercise of the utmost eff ficiency in administration and man. agement. Among the very ones who protest most loudly against the sol diers' bonus are also those who al- ready enjoy a bonus in the way of tariff, rate maxima and other devices. In Washington itself, and in the fed eral service throughout the country, those clerks, officers and public ser- wants in excess of the requirements of efficient service are subsisting on a bonus levied by taxation. There fore, any sincere and comprehensive program of tax reduction must in- clude all these direct and indirect taxes upon the American people.
 MT. Mellon's plan would reduce the tax on incomes of four thousand dol lars, or less, about forty-four per cent, or nearly one-half. This will be well come relief, but the greatest tax on incomes is indirect in the way of prices exacted under cover of the high tariff. There is also the great tax of inefficiency in management and distribution which falls upon the con sumer. The tax revision program does not include inheritance taxes, nor does it provide for the discon- tinuance of tax-free securities. It is somewhat anomalous to reflect that the holders of tax-free securities are making the rest of the population dig down to pay them interest and princi- pal on a debt to which the holders themselves contribute nothing. Such practice works directly in opposition to the equalization of the tax burden.
 The plan proposed by MT. Mellon has it's good features. In such respects it deserves support regardless of par tisan affiliations, because it is mat ter vitally affecting the American peo- pie. It is not political theory, but an economic condition needing correction. However, it were we'll for congress to learn that names do not alter the character of the things to which they apply, and that many practices af- fecting our living expenses are, down under their skin, the blood kin of what we commonly term taxes. If there is to be tax revision, let it be thorough. And let it be done in such way that obligations of government and its du- ties shall not be hindered or impeded because of unwise curtailment of rev. enue.