Evening star., 1925-08-18
BUSINESS AWAITS
LOWER TAX LEv|ES
Speedy Action by Congress
Seen as Promoter of Invest
ment Operations.
BY j. c. ROYLE.

Special Dispatch to The Star
NEW YORK, August 1S.-Speedy
action by Congress for the reduction
of income and miscellaneous tax, such
as has been promised to President
Coolidge by leading members of the
House and Senate, would have a de-
cided effect in changing the flow of in
vestment funds in this country. This
was the opinion expressed by business
men and manufacturers today.
The trend toward taX-free securities
has been a problem which has caused
considerable anxiety in commercial
and financial circles. The results have
been clearly indicated by the way in
which men of money have flocked to
Florida to make Investments since the
State put into effect it's taX.free law
provisions. Georgia gives another ex-
ample. since new enterprises located
in that State are offered remission of
certain taxes.
Record for Insurance Writing.
The tremendous volume of insurance
written this year, which so far has ex-
ceeded all records, is attributed in
large part to the fact that insurance
funds are relieved of taxes to certain
extent. 1t was felt that the insurance
business might feel a recession after
the intensive drive which many com
panies conducted in June, but the vol
ume of insurance written since that
time indicates that the records for this
year will exceed all previous marks.
This in itself has had a decided
bearing on the investment field, since
insurance companies are among the
heaviest lenders and investors in the
financial Af
amount made available for invest
ment in this way may be gained from
the fact that the American people
annually pay about $4,000. .000, 900 for
life and property protection. OF this
amount life insurance yields In
premiums approximately $4,000 ,000,-
600 and property protection, not in
cluding automobile and theft In
surances, costs about 1000, 900 900.
$4,000, ,0O0, 900 in Life Policies.
Nearly half the population of the
United States carry life insurance in
some form, the face value of their
policies exceeding S64 200. 900 900. OF
the aggregate life insurance premium
income, industrial insurance on which
premiums are paid weekly contributes
S464 900. 900 a year. There are now
nearly 70.000.000 industrial insurance
policies outstanding In this country,
but many persons hold more than
one policy
In spite of the increase In prosperity
which has come to the farmers of the
country, the insurance companies are
showing a somewhat less free dispo-
sition TO loan their funds on farm
mortgages. The amount so loaned
has remained about constant, whereas
the sums placed in other fields have
increased sharply.
Taxes More Than Trebled.
The bearing of taxation on invest
nfSht is clearly shown by the fact that
in this country taxes have more than
trebled since the war The total
amount of local, State and Federal
taxes levied in the fiscal year of 1928
"a amounted to $7.716 900 900, as com
pared with s2,194 200, 900 in 1914
Per capita taxation has more than
doubled in the United States and
Great Britain. Great Britain still
bears the greatest tax burden, with
France. Italy, Belgium and the United
States following in order. according
to the burdensomeness of the tax in
relation to national income. The lat
est tax figures available show that
the United States per capita tax has
risen. to S5S.40 a year. while Belgian
citizens pay only $17.76. This fact I'M
doubtedly has been taken into consid-
Grafton in working out the terms of
the Belgian debt agreement
The proposed cut in surtaXes is
counted on to allow a large volume of
capital to flow back into the old chan
nels of commercial and industrial in
vestment.