The Bismarck tribune., 1924-06-06
TAX REDUCTION

In the last analysis. the sole con-
sideration on which the President
signed the revenue bill was it's
superiority over the present rev.
enue law, not its own inherent
merit. There has been an immense
amount OF talk about tax reduc-
tion. Now it Is a fact, to the extent
OF S12S, ,01O, 900 this year, 1851 900
700 next year, and more than $40O,-
CO0,OOO in succeeding years. In
this and in this alone is the new
law superior to the old. That is a
very great virtue, but notwitil-
standing it, the law falls lament
ably short Of what it might have
been. AS the President indicates,
Congress has given the go-by to bet
ter proposals, and, Subject to un-
fortunate influence which ought not
to control fiscal questions" has
passed a bill. which fails to incor-
porate a sound, permanent policy.
which in two or three respects is
positively vicious. and which takes
no cCgnizance Of the great need for
reduction in indirect as well as
direct taxation.
Although the law is not the one
which the Administration hoped TO
enact, the Administration can we'll
claim credit for the fact of tax re-
ductions. The Administration last
November was strongly advised by
the party leaders in Congress not
to raise the question of tax reduc-
ton. Ii was only over these pro-
tests, and by reason of the cour-
ageOus insistence of Secretary Mel
lon, supported by the President
that the subject was opened. The.
realities of tax reduction have all
most been lost in the Congressional
miasma where cheap and foul
politics obscured the issue, but
finally much compromised meas
ure has come through, and tax re-
dUction of sort is realized. 1t
means that taxpayers will pay 25
per cent less this year than last.
that a man with a moderate earned
income OF less than SS 900 a wear
VIII next year pay only about one
tF ird as much as he did in 1923. |
that taxpayers with incomes in the
higher brackets will get some tri-
fling relief and that the public in |
will be free of whole SER
les of nuisance taxes. on telephone |
and telegraph messages. soft |
drinks and candy, carpets, rugs,
theater admissions less
than 80 cents, and so on.
The outstanding features of
the new law are:
A reduction of % per cent in
all income taxes payable in
1924.
A reduction of 25 per cent
on earned incomes Of less than
$4,000.
A reduction OF so per cent in
taxes on incomes less than
$4,000.
Repeal of various excise tax
es and reduction of others.
A graduated reduction in the
surtax amounting to per cent
in the highest bracket of
$500 900.
Administrative reforms, in
cluding the establishment of a
board Of tax agents.
Provision for limited public
ity of returns.
Increase of the estate tax
from 25 per cent to 40 per
cent.
Institution of a gift tax of !
40 per cent.
The Presidents statement, IN
which he takes exception to many
Of these provisions, is one of the |
most able expositins of fiscal pol
icy which the present discussion of |
taxation has produced. For clar-
lty, directness and concise express
sion. indeed, it deserves to take q
leading rank among the pronounce
ments of recent American pres
ldents.
President Coolidge has chosen A
great issue on which to go to the
next November. He has
accepted the revenue law as a
measure of temporary relief. Not
The least OF its good points is the
TACT that 1t removes the uncertain
" OF business over fiscal policy
and permits business to go ahead.
But he does not accept it as final.
"A correction of its defects" he
announces, may be left to the next
session. of Congress. I trust that |
4 bill less political and more truly
economic may be passed at that
line. To that end l shall bend all
my energies" This is notice of
he chief plank in his platform
sound fiscal policy. He has chosen
we'll.
Those defects are readily stated
The dispatch thinks that the
country will agree with the Pres
dent that they are defects. In the
irst place, the new law virtually
caves unremedied the error of the
and non productive
'urtax. The decline in productiv-
ty OF the suretax in proportion to
ts graduation upward has been
demonstrated. A vast tax evasion,
'orced by confiscatory rates is in
progress. The door to this evasion
las been left wide open through
he refusal of Congress to pro-
libit tax evempts. No new induce
nent has been offered to large
capital to enter private enterprise,
md no relief has been offered the
consumer from the huge Indirect
AVIATION which he pays. know it or
lot, by reason of these surtaxes.
IN this the law. if no worse, is still
almost as bad as the old
In the second place. there is the
'ew high estate tax. which amounts
o a capital levy-the execution Of
Working calpital-and which in