Evening star., 1923-06-10
REDUCTION OF TAX BURDEN
TASK FOR NEW CONGRESS
Two Forces Lining Up for Fight Against
Present System-Have Widely
Different Viewpoints.

weeks number of other large and
important Investigations by the COM
sion will be announced, following the
approval of the President. The work
of the commission is being followed
with the keenest interest. In the
next few months the commission. say
some members of Congress, will have
demonstrated its real worth and the
wisdom of the flexible tariff proyis-
ions Of the law. or the American peo-
pie will have suffered a disappoint-
ment.
The expenditures of the govern
ment are in the neighborhood Of
s4.OO0,oOo,0o0 a year-a very large
part of this sum being needed to pay
off the war debts. There seems little
probability of a reduction for years
to come in these expenditures. though
efforts are bing made to cut down
wherever possible, and undoubtedly
economies in government expendi-
lures will aid materially. But this
vast sum, for the most part. must be
raised from the taxpayers annually.
In addition to the federal taxes, the
v
state and municipal taxes. The ad-
justment of the tax burden has be-
come a vital matter, therefore, and
much will depend, it Is said. upon
how this problem is handled by the
Congress.
Budget Working.
The budget system has been set
up and Is working to advantage. But
the responsibility. in the end lies
upon Congress, as was demonstrated
at the last session when the old
pork barrel" methods came into con-
fiict with the budget bureau 1t is
much to be regretted that the budget
bureau came out second best in this
conflict. The specific trouble arose
over the appropriations for river and
harbor improvements. Every one ad-
mits, except perhaps the2railroad men,
that water way transportation should
be improved and increased. But the
budget bureau had estimated that all
the Congress should allot to river
and harbor work during the present
fiscal year was s27,0oo,o0o. But Con-
gress. after much criticism Of the
budget bureau, raised the limit 70
s59.o00,0O0.
The budget system will be a great
aid to Congress, provided that body
really is anxious for economy. But
Congress must help itself: it must be
willing to limit expenditures no mat
ter whether they are for rivers and
harbors. for public buildings or for
other governmental affairs, or the an
nual expenditures will be ever on the
increase instead of the decrease The
budget system is not able to stand
alone, as long as it is possible for
committees of Congress and even in
in tho amounts proposed by the bud
get bureau.
Stopped in Senate.
In the last Congress efforts were
made to put an end to the issue Of
further tax-free securities. A pro-
posed constitutional amendment was
introduced and was put through the
House by the necessary two-thirds
majority. But it was allowed to sleep
In the Senate committee until March
4 had rolled around. 1t has been esti-
mated that in recent years $4,000
600. 900 worth of property has been re-
lieved of taxes through its investment
in tax-exempt securities, either fed
eral or state and municipal. The ar
gument is made that IL the surtaxes
on big incomes are lowered or wiped
out, there will not be the incentive for
wealth to seek out these securities |
but it will be invested in industry /,
But before the surtaxes came into ex- !
istence, there were large investments |
in tax-free scurities, and there Is con-
reason to believe that such /
investments will continue no matter
what Is done with the surtaxes.
According to New York reports last !
fall, within a month thirty-eight huge |
declared stock dividends !
S1,10S,000,0 900, the second big |
since the close OF the war |
These corporate surpluses SO distrib- |
uted avoided the federal taxes. Tn
der the decision of the Supreme Court
they could not be taxed Here is
matter which will be brought forward
with yigor. it is said, when Congress
assemblies.