Evening star., 1924-08-15

ments in this country have reached
the stupendous sum of about $780,
000, 900, we get some idea of what this
means. or this amount. about $3.500,-
000, 900 is needed by the National Gov
eminent and the remainder by local
governments. Such a sum is difficult
to comprehend. 1t represents all the
pay OF 100000 wage earners receiv-
ing IS day, working 800 days In the
year. If the Government should add
/ on $16o.o00.000 of expense. it would
represent four days more work of
these wage earners. These are some
of the reasons why / want to cut
down public expense.
Fight to Reduce Taxes.
II want the people Of America to
be able to work less for the Govern
ment and more for themselves. ]
want them to have the rewards of
their own industry. That is the chief
| meaning of freedom. Until we can
re-establish a condition under which
the earnings of the people can be
kept by the people, we are bound to
suffer very distinct curtailment of
our liberty.
These results are not fanciful.
| they are not imaginary; they are
grimly actual and real. reaching into
every household in the land. They
take from each home annually an av-
erage of over $500. And taxes must
be paid. They are not a voluntary
contribution to be met out of surplus
earnings. They are a stern necessity.
They come first 1t is only out of
what is left after they are paid that
the necessities of food, clothing and
shelter can be provided. the comforts
of home secured or the yearnings of
| the soul for a broader and more abun-
dant life gratified. When the Gov
ernment effects a new economy, it
grants everybody a life pension with
which to raise the standard of exist
ence. 1t increases the value of every
body's property and raises the scale
Of everybody's wages. One of the
greatest favors that can be bestowed
upon the American people is economy
| in government.
Wants Further Reduction.
| Because of my belief in these prin-
| ciples. I favor economy that the taxes
of everybody may be reduced. Much
| has already been done. The bill
which ] signed will save the people
about $1.000,000 each day. / want
further tax reduction and more tax
reform. The raising of the revenue
| required to conduct our Governm en-
| is Intimately connected with our eco
nomic welfare. If it is done by wise
and just laws, the burden will be the
| most easily borne. But IL the method
| of taxation is not sound, disaster will
| follow, reaching even to financial
panic Our first thought should be to
maintain unimpaired the activity Of
agriculture and industry. That tax
| is theoretically best which interferes
| least with business.
| Every student knows that exces-
| sively high rates defeat their own
| purpose. They dry up that source of
| revenue and leave those paying lower
| rates to furnish all the taxes. High
| rates tend to paralyze business. For
! these reasons / am opposed to excess
| profits taxes and high surtaxes. When
the revenue bill of 1921 was passed.
abolishing excess profits and greatly
| reducing high surtaXes, it was i'm
mediately followed by a revival in
| business and an increase in the num-
| Der of larga incomes, SO that the gov
ernment received nearly $780, 100000
| more in taxes from those having in
| comes Of over 100000 than under the
higher rates of the previous year
But rates were still too high and all
| kinds of business began to pause; ag-
| riculture especially felt their indi-
rect adverse effects. A new tax bill
was passed this spring carrying still
| further reductions, and under its ap-
parent influence there seems to be the
beginnings of another Increase OF
prosperity. Good business is worth
more to the small income taxpayer
than a considerable percentage of tax
| reduction.
Indirect Taxation.
only about 3,5oo,OoO people pay di-
rect income taxes. The remainder
pay, but pay indirectly, in the cost of
all purchases. from a pair of shoes
| to a railroad ticket. This country has
at least 1o7, 100000 of these indirect
| taxpayers. I am not disturbed about
the effect on a few thousand people
with large incomes because they have
to pay high surtaxes. They can take
care Of themselves, whatever hap
pens, as the rich always can. What
concerns me is the indirect effect OF
high surtaxes on all the rest of the
people. Let US always remember the
poor. Whatever cry the demagogue
may make about his ability to tax
the rich, at the end of the year it will
always be found that the people as a
whole have paid the taxes. We
should, therefore, have a system OF
taxation under which the people al
whole are most likely to be pros