Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-15

that the Government docs not ur-
gently require the money" and that
''in view Of the fact that corporations
are subjected to heavy State and To-
cal taxes, the high Federal tax levy
is unduly restrictive from the pro-
| duction standpoint the Journal
argues: while incorporated enter.
prises constitute the bulk of our in
dustrial and commercial activities,
they are not the sole type of business
organization. 1t is reasSuring, there
fore, to know that Congress is plan.
ming to make such changes in the
law as will eliminate the present dis
elimination against Incorporated
firms"
THE people Of the country will
whole heartedly support these revi-
sions," declares the Atlanta Constitu-
ton Democratic), with the further
suggestion: According to Senator
Reed that plan does not include more
than 1 per cent reduction in the
corporation tax. 1t should by all
means go further than that. 1t should
be reduced to per cent, and If
1t were entirely wiped out the
country would be the better for 1t,
the corporations would increase their
productive activities, and the Gov
eminent would still find itself able
to function without a deficit. We
are too prone to kill the goose that
lays the golden egg"
Explaining that in reality the COR
poration tax Is a species of double
taxation" the Chicago Tribune Gin
dependent Republican, states that it
Will be tolerated only so long as
great numbers of stockholders are
unaware of the process" The Bell
ingham Herald independently and
the San Antonio Express independent
Democratic) declare that the reduc-
ton would be justified and beneficial,
while the Hartford Courant Gre
publican) earnestly approves the
incidental proposal that Federal in
heritance taxes be abolished, with
the comment 1.-The demand for such
repeal is countrywide and the legis-
latures of % States have already
petitioned for the abolition OF the
tax
Opposition to the proposal is voiced
by the Schenectady Gazette (inde-
pendent Democratic). which fayors re.
duction of the public debt and says
that renewed effort to use the half
billion Treasury surplus for tax re-
duction would mean trivial sums In
almost every case, but our politicians
would make great hullabaloo about
1t and probably would capture some
votes"
The Baltimore Evening Sun (inde-
pendenO contends, however, that
the discussion as to whether the
Treasury surplus shall be applied TO
reduction of the public debt or to
reduction of taxes Is really of no great
moment to John Smith, taxpayer. In
either case he will benefit, for as the
public debt Is reduced he will have
less interest to pay"
"On the whole" as It appears to
the Kalamazoo Gazette independently,
the program outlined by the Penn
sylvania Senator seems attractive
enough when judged in the light Of
present conditions. But 1t is just as
well to remember that his prediction
of a $300.000,000 revenue decrease Is
only prediction. subject to all the
adverse effects which time and
change often bring to bear upon
in all its forms"
There was no reason" In the opin-
ion of the Houston Chronicle Sinde-
pendent), why taxes shouldn't have
been reduced at the last session of
Congress. The Treasury surplus was
large, and everybody knew that it
was going to become larger" The
Union independently ad-
vises it's readers that "the suggested
new reduction in taxes will hot be
seriously affected by the demands for
Increased appropriations for flood
control" since in that direction "the
would not be able to per-
form, at the outside. more than $780,
100000 worth Of work annually"