Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-27
More Taxes.

Talk Of increased taxes has Q heavy
and uncomfortable sound. Yet high
officials Of the administration, particu-
larly Secretary Mellon of the Treasury,
are considering the adVisability, even
the possible necessity, of revision OF
the tax structure in the coming Con-
gress TO balance the budget and wipe
out the deficit in the Treasury, which
continues to mount higher. 1t has been
apparent for some time that sooner or
later taxes would have to be increased
unless there should be great wave OF
increased business, capable Of bringing
golden harvest to the Treasury
through the income tax route. The
question which now presses for consid-
Grafton, however, Is whether this tax
revision should be undertaken immedi-
ately or should be postponed.
Two reasons for postponement Of In
creased taxation are advanced. First,
heavier tax levy would be q drain on
business, which Is seeking TO struggle
back to greater production and an
ployment with prices low. Second, pro-
posals to increase tax rates on the eve
Of national election might iniuriously
affect the chances Of the political party
advancing them.
The need for the increase in taxes,
which seems now coming to be recog-
nized, does net reflect good judgment
on the part Of the law makers Of this
country. They hold the purse strings.
They have permitted the national
budget, In times Of ease and prosperity,
to mount to great heights-from four
billion to nve billion dollars o year.
The Congresses in succeeding years
have added millions upon millions Of
dollars to the governmental expenditures
for new projects, no doubt worthy in
themselves. They have set up new
services Of various kinds which, 1t APP
pears, cannot be eliminated. Although
there are no Joneses for Uncle Sam to
keep up with, he seems to have been
engaged In an effort to 60 far beyond
all other governments in the matter OF
expenditures. Nor does the fault lie
wholly with Congress. The executive
branch Of the Government, through It's
many departments and bureaus, has
constantly demanded greater and
greater appropriations.
Secretary Mellon has heretofore point
ed out correctly that the present tai
structure Of the United States Govern
ment, relying principally upon the In
come tax for its returns, cannot operate
effectively In hard times. although IN
flush times it Is capable Of producing
huge SURPRISES. If there is TO be tax re-
vision, it is likely to follow two courses.
The first will be an increase In the sur
taxes, falling upon the larger incomes,
and the other viii be the levy Of certain
excise taxes. upon the sales. for ex-
ample, Of gasoline. Of various kinds Of
so-called Injuries and upon anuse-
ments. A general sales tax has been
proposed by Senator Reed Of Pennsyi-
yania. but has struck no spark Of enthu"
siasm. It would be effective in raising
revenue, but not popular. Another pro-
poSal has yet TO be advanced. the IN
crease In tax rates on all incomes, little
as well as big, with the lowering Of ex-
emptions. The levying Of excise taxes
upon the things which the people pur-
chase is merely means Of arriving in
| directly at the same result as the In
J crease Of rates on small incomes would
bring.
The struggle over tax increases at this
time appears to be between the fnan-
ciers, who see the need Of balancing the
governmental budget with as little delay
as possible, and the political leaders, who
shudder at the thought Of going 10 the
county after having increased tax rates
and levied new taxes, The hnanciers
seemingly are more interested in the
future of the country, while the poll
ticians are thinking very largely Of the
future Of political parties.
/ ---S-1Sesn-S-----