The Washington times., 1924-05-22
REPUBLICANS.
PLEASEDAT
TAKCUTS
Political Leaders Consider Re-
ductions Reported In Con-
gress as creditabIe Feat.
BY WILLIAM HARD

Just about everybody in Wash
ington today. except prospective
heirs to great estates. saw some
reason for getting bright and cheer
full over the composite compromise
tax bill now reported to both
Houses Of Congress by their Joint
conference committee.
Administration circles were pleas.
ed over the fact that after all a
certain considerable victory had
emerged for the proposition that
high surtaxes are to be regarded
not as a desirable way to punish
the rich, but as an Objectionable
handicap upon business. The ex-
tent of this victory, 1t is believed,
is not yet generally appreciated.
In the year 1921 a rich business
man with an annual income Of a
million dollars was paying G. top
surtax OF IS per cent. A year
later, under new legislation by Con
gress, he was paying only so per
cent. Now, under the new tax bill,
he is scheduled to pay only 40 per
cent. That win be his rate next
year.
To have pulled his burden down
from 65 per cent to 40 per cent in
the course Of four years-that &C.
complainant Is claimed by poll.
tlclans here as a considerable
achievement.
Present Situation.
Meanwhile they also pointed out
with satisfaction that the progress.
sive reduction in the lowest normal
income tax has brought about the
following situation:
In the year 1918 the lowest IN.
come taxpayer paid a normal tax of
s per cent. Then under the new
revenue law of 1921 he paid q nor.
mai tax Of per cent. Now under
the present proposed new law he
VIII pay only 2 per cent. To have
cut his burden down by two-thirds
during these last few years-that
also is regarded by politicians here
as a considerable and creditable &C.
complishment.
In other words, the politicians
here, as a class, think that they
have done quite we'll by the public
IN the matter Of taxation reduction
~ the matter ts looked at in q large
way.
Heirs Hard Hit.
The one class Of people who. in.
stead OF getting their taxes re,
duced, are getting them constant.
ly increased, and who are likely ~
see them still further Increased IN
the future, are the heirs to 80
tates. Burdened some years age
with no Federal taxation whatso
ever, these ladies and gentlemen
are now paying as much as 25 Der
cent on estates amounting to $40.
100000 and presently will be pay
ing 40 per cent on such estates Il
the President signs the proposed
bill.
This development has beer
FASTENED by the fact that certain
rich men prominent IN Washington
nave been strong advocates of higf
inheritance taxes, with the provi
sion that at. the same time the
taxes on the living should be-
lowered. Among such rich mer
may be mentioned particularly Al
bert D. Lasker, former chatham
OF the Shipping Board
1t was always his contention tina,
the taxes on the living should h,
low, in order to encourage Thorn ia
their strongest possible efforts IN
business and that the taxes on the
dead should be high in order IA
break up large accumulated "a.
tates and compel all young mar
to start off in business more near.
~ on a level with one another.
Dominant in Congress.
This theory, It can be safely said
Is now domipant in Congress. The
prospect is for further future re-.
duced taxes on the living, when.
ever the state Of the public Federa]
treasury can justify it; but the
prospect also IL that irrespective OF
the state Of the public treasury the
taxes on the dead will not go down
and may even still further 20 up.
We are entering upon a period
OF stimulating the individual bust.
ness man by tightening his annual
tax burden and OF then stimulating
his SON to ardent and energetic ef,
forts in, business on his own &C.
count by taking a large part Of his
fathers estate away from him.
This theory, whether sound or not,
seems likely to dominate the policy
OF the Federal Government for some