Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-08-15

are not a voluntary contribution to be
met out OF surplus earnings. They
are a stern necessity. They come first.
It Is only out Of what is left after
they are paid that the necessities of
food. clothing, and shelter can be pro-
vided, the comforts of home secured,
or the yearnings. of the soul for a
broader and more abundant life graft
ned, When the Government effects a
new economy, it grants everybody a
life pension with which to raise the
standard of existence. 1t increases
the value of everybody's property and
raises the scale of everybody's wages.
One of the GREATEST faeorS that can
be bestowed upon the American people
is economy in government.
Because of my belief in these prin-
ciples, favor econoNy that the taxes
of everybody may be reduced. Much
has already been done The bill which I
signed will save the people about 81, ;,
600, 900 each day. 1 want further tax
reduction and more tax reform. The
raising of the revenue required to
conduct our Government Is intimately
connected with our economic welfare.
II 1t 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 theoreti-
cally best which interferes least with
business.
Every student knows that excess
lively 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 Masons / am opposed TO ex-
cess-profits taxes and high surtaxes.
When the revenue bill of 1921 was
passed, abolishing excess profits and
greatly reducing high surtaxes, It was
Immediately followed by a revival In
business and an increase in the num-
Der of large incomes, so that the
Government received nearly S100, u00,-
600 more in taxes from those having
incomes 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;
agriculture especially felt their in
direct 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.
Only about S.5O6,O00 people pay di-
rect income taxes. The remainder
pay, but pay indirectly, in the cost OF
all purchases, from a pair of shoes to
railroad ticket. This country has
at least 100000 900 of these indirect
taxpayers. | 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 dema gogue
may make about his ability to tax the
witch, at the end of the year it will al
ways be found that the people as a
whole have paid the taxes. We should.
therefore. have system of taxation
under which the people as a whole
are most likely to be prosperous. Our
country will be better off if, disre-
5NA tAAAe, tHooC WIZ uPPCoi w tColOu0S
and envy, it follows in taxation and
ell else the straight path of justice.
Economy in National Campaign
Economy should be practiced
scrupulously in the conduct Of a ma
tional campaign. / know it is diff
cult to distinguish between real SER
vice to the people and mere waste
fulness Costs have increased by
doubling of the electorate. rendering
close calculation impossible.
Nevertheless, can perceive no rea
son why the budget system should
not be beneficial in a campaign, as it
has proved to be in government. 1t
is to be tested by our committee.
There should be no relaxing OIL
resolute endeavors to keep our cleo
lions clean, honest and tree from
faint of any kind. Only the closest
scrutiny of both the sources of con-
tributions and the character or ex-
penditures can accomplish this laud-
able purpose. For the first time, this
has been provided for the coming
campaign through the appointment Of
a competent Senate committee vested
with ample authority. The Republic
can national chairman has already
volunteered to file sworn reports of
} both income and outgo, in full detaii,