The Daily Alaska empire., 1928-05-25
TAX REDUCTION.

IAA
 The Nations Business the monthly magazine published by the United States Chamber of Com merce is strongly convinced that the Adminis- tration is making mistake in not fayoring deeper cut in the prevailing high taxes. It shows that the surplus last year was S635oOo,0oO not withstanding that the Treasury estimate in the beginning was for a $1S6000000 surplus and as late as last December it fixed the probable surplus at S3S3 900 000 It says we are pay ing off the debt than twice as fast as Con gress deemed wise when it adopted the 32-year program. (Last year the debt payment aggre- gated $1,133, ,000,000) Nations Business says the United States Chamber of Commerce state ment of the case when it urged that the tax cut be not less than S394 900, ,000-practieally $780, 000,000 greater than the cut of the Senate Dill and about $1OO, ,O00,O0O greater than the amount of the House bill cut and $90.00O000 more than the Democrats asked for-was clear and con vncing It shows that the surplus this year will be not less than $623, 00O on the basis . of the present tax rate, almost as much as that of last year $394, 100000 cut in taxes would still leave an estimated surplus of 229,000,00O to work
 The Nations Business, continuing the dis cusson, says:
 Three times since the has Con-
 gress reduced taxation in 1921
 again in 1924 and third time in 1926
 Each time Congress has cut deeper than
 the Treasury recommended Each time
 the surplus has shown how safe were
 these deeper cuts In the last, most
 striking case the Treasury recommended
 cut of $500 1000, 900. Congress passed
 bill reducing the revenues by $422,-
 OO0,000.
 And what the result? surplus
 in 1926 of $377 GOO, 900 and in 1927
 of $635, ,000
 So much for what has happened As
 for the future nothing indicates any
 business recession such would imperil
 our revenues. Moreover to oppose just
 and reasonable reduction the ground
 that Congress may authorize the expen
 diture of unexpectedly large sums is
 ridiculous. The power that lies in Con
 gress to spend money lies in the
 body to raise it.
 Thomas S. Adams, Professor of Political Econ- omy at Yale and economic adviser of the Treasury Department, defending the United States Chamber of Commerce. which he also ad- yises, concluding comprehensive statement, says
 As matter of fact, this whole sub
 ject should be taken out of the domain
 of controversy into which it has got
 ten, and it should be recognized that
 the Treasury Department and the Cham
 Der of Commerce alike fulfilling, as
 best they can, function that is very
 necessary to fulfill in democracy
 have served these committees
 of the United States Chamber of Com
 merce since before the war I have
 served on their tax committee. Repeat
 edly, again and again, that committee
 and the Chamber of Commerce have re-
 trained from urging tax cuts which
 would be to their selfish advantage, and
 which. they wanted and which they
 thought possible in deference to the
 recommendation and estimates and con-
 clusions of the Treasury Department It
 IS a serious matter with them to oppose
 the Treasury Department, and they do
 it only reluctantly.
 want to say that in the past they
 have aequiesced in tax rates which they
 thought unduly high out of deference
 to the Treasury Department and the
 events have shown that those tax re-
 duetions might properly have been made President Cleveland, contending for tax re- auction at time when the surplus was small change when compared with the present surplus uttered the truism that unnecessary taxation is unjust taxation" The circumstance that the country can stand the high taxes has no place in the discussion at all. Money is of far greater use to the public when in the pockets and treas uries of those who earn it than it is when ex- pended in appropriations that are unnecessary The business of the country is in such a con dition now that it needs the investments in the outstanding bonds worse than it does the flood of money the Government is releasing in the re. edempton of bonds. When money is taxed ont of the pockets of those who could use it adyan. tageously in their business and paid to those who can find no better for it than stock gambling, the public is not being well served It was recognition of this fact that caused Congress to decide that the debt ought not tc be paid faster than between 5000 900 900 ant s $70O00,000 year, and to have debt payments