Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-26
cov Smiths Tax Figures.

prosneritv is sometimes relative
n-oposit;on. The manufacturer OF pussy
whins. for instance, is not such an opu-
,,ist ss the manufacturer Of radio sets.
This is likewise true Of economy. Totai
expenditures mean little. The family
now spending $4,000 may be Just as
economical in its outlay as III 1918
when it spent only $4,000 Almost any
thing regarding prosperity or economy
NAV be demonstrated to the SatiSiac-
ton Of the partisan. But one may CUES
.,cr the wisdom. and even the fairness
Of Gov. Smiths statements in his accept
snce speech regarding the tax-reoucine
record of the Republican party. AAeer
citing the increase under PRESIDENT
coo,;6se in Federal appropriations and
expenditures. the governor said:
II the defenders of the adminlstra-
ton answer that taxes have been re-
c,Iced. they ind themselves IN similar
dilemma. The total taxes collected are
S94 10fa 600 more than in the f1rSt year
Of the Coolidge administration. WINE
tax rates have been reduced ana SOME
wartime taxes abandoned, the Govern
noent actually took from the people IN
income taxes $3.50, 000. 600 more during
the last fiscal year than during the nrse
GEAR of the Coolidge administrator.
And even these reductions in tax rates
have been brought about primarily be
cause the administration has commit
ted the Government 10 appropriations
authorized. but not made. amounting
spproyinlateiy to one billion collars,
which is an obligation that is passed on
70 succeeding administrations.
What does Gov. Smith seek to prove?
Does he mean that tax reduction mas
missed its mark because the total tax
revenue. despite reduction of tax rates
and elimination of others. continues TO
increase? Should wise reduction Of
taxes mean an accompanying reduction
in revenue fre-n taxes? Those Demo-
Gratis in Congress who took such vo-
eiferously statesmanlike part in non
partisan" tax-reducing legislation viii
probably regard with interest the gov
errors implication that tax reduction
gas brought about primarily because
Of the administrations policy OF au-
thorizing appropriations.
Gov. Smiths figures are correct.
More taxes we're collected by the Fed
eral Government in 1927 than in 1924.
Income and profits taxes collected In
the fiscal year 1928 exceeded those col
iected in the fiscal year 1925 by $685.
s4s,ss2. In the same period there was
q decrease Of more than three million
persons who paid income taxes: three
millions. or forty-four per cent of all the
Nations income taxpayers, were relieved
OF paving any taxes on their incomes.
When the revenue act Of 1925 was
framed, the House ways and means
committee estimated that it would
mean a considerable loss Of revenue,
which, following Gov. Smiths inplica-
tons. would have stamped it as sound
revenue legislation. But instead there
was an increase. Secretary Mellon, q
partisan, OF course, attributed the in
crease to the increased prosperity Of the
country and an enormous increase In
the income reported from sale Of prop
erty Another thing was that almost
the entire decrease in taxable incomes
has been in the classes not in excess o!
5000 But the number in excess o.
that amount increased By eighteen pei
cent Another item swelling the tota
has been the Governments drive 70!
the collection Of back taxes. Small in
come taxpayers we're eliminated. Larg
income taxpayers were increased Il
number. Individual burdens were les
gened ard the burden of the corpora
tions was increased.
Coy. Smith did not mention the ef
feet Of tax reduction on the purse o
john Smith private citizen, In 1911
this John Smith had charming wife
two beautiful daughters and income o
5000. The Government took si5'
away from hirn and he decided 10 vot'
the Republican ticket In 1921 he onl!
hsd IN pay $6s, and as his income la,
remained ttle same and the childrei
we're demanding more and prettie
clothes he was duly thankful In 1872
be had u psy $3.50 which was no
much more than the price Of neg
automobile tire In 1923 his incom
only cost him s7ss. and while he
going - vote the Democratic ticket Il
November il In because he likes Coy
Emjth an6 not on account of higl
taxes.
Gov. Smith also failed ~ mention
t.1@. @.~a ne Nas inaugurated In 1872
the bonded l.-5eis'eGness Of the Stat
II Eea York Vas s2s7, 1919 and tha
in 1921 u was S342 ,057.zl9 In 1922 tn
tan revenue 0f his State was SiI7 .057 As
and in 1927 IL amounted W sig5 ,263 67s
II vas not necessary for him 10 mentio
this, because IT has nothing 70 do wit
his fne record a. governor SO, afte
all what was the purpose Of his state
ments regarding the tax-reducing recof
Of the Republican party?
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NJ