Evening star., 1927-10-23

The campaign launcheO py the
business interests OF the country for
a reduction In the Federal corpora
ton tax, the repeal Of the Federal
estate tax and the abolition Of the
war excise taxes on particular bust.
nesses has struck a snag In the form
of the opposition Of President Cool
idge.
Big business wants to save $780,
000, 900 to $500, ,000,0 900 by looping such
an amount off its annual tax bill. and
has set In motion the forces that are
expected to bring Congress around
to It's way of thinking.
President Coolidge IL willing thar
there should be tax reduction. and
that the corporations Of the country
should be primarily the beneficiaries
of the reduction. However, the Pres
ident has let 1t be known in no
uncertain terms that in his judgment
big business would be engaged in a
more laudable undertaking II 1t were
making o. drive to insure economy
in Government expenditures. There
can be no tax reduction without
rigid economy in the management
of public affairs, and there Is little
likelihood of economy If Congress at
the approaching session is to be sub
jected to unprecedented pressure from
selfish interest, as now seems to be In
prospect,
Various organizations are now
lining up for this drive on Congress
and President Coolidge Is understood
to be apprehensive as to the result
Of that sort of thing. Undue tax
reduction and extraordinary appro'
priations for various purposes are the
ends sought, and II public opinion Is
not aroused to combat them. or hold
them within bounds, the Government
financial machine that has been func-
tioning smoothly and with a high de-
gree Of efficiency may be seriously
deranged.
Thel President is said to be espe-
cially concerned lest through tax re;
duction the Governments revenues
be materially reduced just at the time
when it is inevitable that Government
expenditures will be greatly increased.
Flood control for the Mississippi Val.
ley, more cruisers for the Navy, the
five-year aircraft building program:
increased pensions and the soldiers
adjusted compensation will necessitate
outlays of the public money at the
coming session of Congress and the
President does not want the tax re-
duction movement to gain too much
headway before It 10 definitely known
just what those OUTLAWS will aggregate.
What Business Interests Want.
What the, business interests in the
country want, as shown by the specific
recommendations submitted by the
United States Chamber of Commerce
for the approval Of its 1.5OO member
organizations, Is that there be i'm
mediate reduction and repeals in Fed.
eral taxes amounting to 100000. 900
in the first full year after the changes
are made, that the rate of corporate
income tax applicable 10 net income
Of 1927 shall be not more than 10 per
cent, and that Congress provide full
opportunity for the joint congress
sionaI tax committee to perfect pro.
| posals for revision Of Federal tax laws
and their administration.
Pointing out that during the last fis.
cal year the corporation income tax
yielded revenue in excess OF $1,000. .000.'
900, or 80 per cent Of the total taxes
while in addition State and local juris'
dictions are also levying heavy toll on
corporations, the taxation committee
of the Chamber Of Commerce says
that not only has there been general
discrimination against corporations
in that all other tax rates have been
reduced or eliminated since the war
period, but there is o particular dis
elimination against corporations as
compared with individuals and part
nerships, even though the latter may
be engaged in the same type of bust
ness and competing with corporations
"Quite apart from any discrimina
tions against corporations as com
pared to taxes levied on other sources,
/ k1SA 10 q OF
argument for the reduction OF the cor
poration income taxes on the ground!
Of business and Industrial development
and the general welfare of the coun
try. The characteristic American
method of doing business is by mean:
of corporate organization. In manu-
featuring Of all kinds. finance, trans
portation, communication--in fact, II
practically every kind of business &C
tivity-it is the corporations which art
doing not only the great bulk Of bust
ness, but are also the pioneers in de
veloping new activities, increasing ef
ficiency and reducing costs to the con
sumer. Any undue burdens placed OF
the corporations either by taxation ol
otherwise are obstructing the develop
ment Of one Of the most important in
struments OF economic progress which
have been developed.
Probably no one thing does a.
much to simplify the Federal tax stu
alton as a reduction in rates. Moder
ate rates which reduce the hardship
which might otherwise ensue no longe
make necessary elaborate provision
for the relief OF taxpayer who find
himself i'm some unusual situation
Taxpayers and Government Official
both approach the matter in O nnanne
most conducive to speedy agreement
lSimplification of the income tax i
generally regarded as one of the mos