Show NUE CUTy GUT CUT y f DECISION IF f TRIBUNAL un dr gds of Millions l Will Tilli 1 to tol l c Lost Unless Congress I acts on the Matter o of f Taxes on Dividends i v ide 11 d s st faxes A T Tt t B By y D David avid Lawrence t C bt 1 l by br Th Salt S H T Inks JA e Praia 1 washington March l Taxation 21 21 Taxation not bo be as to the tho acre cr a ay y e man as tho the stories of or extravagant an and Incompetence during tt i e ar which has heaped heaped up a big biff but the Republican r majority Inn in n Tess ss Is face to face with tho the most turn of or luck that ever hit bit L fp political P party part in III a campaign year car pre decision of or the supreme court courto o llio United States on stool stock dIVil dIVi- dIVi has not only subtracted subtract d from tho the l ai that has bas been expected but remedied b by act of or Congress e reds e s of oe millions of or dollars will bo be boLt bet bot Lt t tad and nd the thc ca eagerly erl loot looked cd for d day dayn y yUn be reduced will have havo taxes can ran Un n P n r t Jinny f SUJ C Made Iad iT Tho JC way Va and means committee togas it Republicans it-Republicans as well welt as Democrats The Tho long and ami highly tech tech- cd letter from Secretary Houston of or ofU U treasury r d department elicited by suggests ts several 1 remedies IIO which Is particularly palatable Hi dl the lie t e group roup of or taxpayers who would t affected y ff amendments to the they y nl tau law l cr Every Every suggestion Llon from nil l ta tai th that tt would virtually compel lo to distribute their tsin s concerns tits Uti Instead of or holding such profits the them a as undistributed or in Im m Of f stock div dividends to the novel 4 K f a 1 per cent tax on sales of or kinds in erda e bu business has been de J at-J Some of oe the DIP proposals backed organizations of man many Ind arc nebulous as us to their tion Fome onre favor a 1 per pcr c cent centon n t. t on all aU articles sold whether by the or the retailer or the middle mh This might mean glean a 1 per cent aU II along the line and it I is defend defend- I defond-I t 05 the thc ground round that even if Ir collected t or five times it would still beof bo be I of or a a. burden on Initiative than tho the excess profits tax Jt t 1 Congress is ht compelled to do I athing to recoup the los loss 3 of or tho the k decision Chairman Ford- Ford Republican leader openly prom- prom action In reply to an inquiry from Champ Clark Clarl tho the Dern- Dern tic tle leader I a asked ked t e Cordell Hull of or Tennessee who to e tho the orl original inal income tax law toe to toe tobis e e his bis view of or tho the situation Ho o oY Y Democrat s Sec ice c Demand The Ie Democrats foresaw fonsa tho the demand demanda I a 1 reduction of or taxes and promptly t I down two billions of or dollars in I ble bie revenue This Thle was waa done over overe e protest t of or the tho Republicans In 1918 1315 I r. r the they would have C liked to do it l I Bs lve when thc they came canto into power lI j j I i moreover reduced the from about fifteen to six I lions on oat of or dollars as soon as the tho war wari i o over I flow aw 1 0 the Republicans have actually down dor n the expenditures b by a billion I fUrs Iu Itra but with ji T two billion dollar mad madr b by the Democrats rare still confronted with the nc- nc ily itI of oC cutting down expenditures I I ether er billion dollars before there can any Iny r reduction in Ih taxes As a mat mat- I of e fact whether it had been lIeen a po- po I year or not tho the reduction In MI ii u should have been made at exactly I time It wa was Nevertheless with increased loss los of oC revenue which j plU U. U from the supreme courts court's dow de- de OE w It puts puis the Republicans right ht I dC-I It ft i I J Concur in View eh a a. view vices even en e t though expressed cd ri Democratic member of t tho e ways I means committee Is IE concurred in J y by bv ma many maTiy y Republicans publicans except I y naturally argue that the 3 by the thc War Is Wi lb might never have halo accumulated w tr r competent management manas-ement all of or I kh kb ui will Hill be difficult to settle even cven e political O stump slump For the fact la is tuU try can expect to lo reduction 18 in t ts tor for three years unless some I d are made made- to the he present law TW which will bring In III more revand rev- rev md and estimates are appreciably cut dhave k e already been ruthlessly ret re- re t ed e Democrats are arc arc of or course preZ pre pre- kg Z to to go JO to the tho country with tho the thord rd of or President Wilsons Wilson's message lag i e repeal of oe excess profits taxes A more scientific arrangement of oC e wIth the various of ot Secretary McAdoo cAdoo an and Secre- Secre I I t GI hs s as proof of ot Democratic ac- ac ity IY n 0 the tho subject And the they will i t to Lt the e inaction of ot the Republican I Congress as the responsible cause CAuse of ot the continued inequities of or taxation Hold Surprise On the hand the Republicans may surprise their Democratic friends by tackling tho tim tax question anyway figuring that the they will be able to capture capture capture cap cap- ture the next Congress on oil other counts in the Democratic record and considering considering considering consid consid- I ering moreover that a revision of or the tax laws would business men mon Whichever wa way they approach the subject subject subject sub sub- there is trouble in store But Dut it begins to look ook as If It Congress will pass some amendment which will get et at the stock dividend decision England is having her troubles with the same phase of ot her Income tax law and it Is estimated that billions of or dollars have been lost and will be bo lost b by the eva ova evasion evasion sion slon accomplished in failing Cailing- to distribute distribute distribute dis dis- tribute a actual cash in earnings s and putting them in the form of stock dividends dividends divi divi- that can ean be held heM for a decade or orso orso orso so until taxation burdens ar are arc cased eased off ort and then sold at a handsome profit Aiming nt Solution Tho The solution which many members of or Congress seem to bo he aiming at nt Isone is isone one that would put a L tax on a corporation corpora corpora- corpora corporation tion as a unit If ie it failed tailed to distribute I its profits It would still bo be optional with the corporation whether it distributed distributed I or not but hut the tho business would have havo to pay virtually a penalty for that method of oe handling its profits Tho The penalty might bo 15 Hi per cent cant one year car 10 per pcr cent tho tire next G 5 per cent the third year car and so 10 on with the re result result re- re sult that corporations and anti other businesses busInesses businesses busi busI- nesses which didn't distribute their profits would woul pay a higher tax tae for the privilege e of or w withholding withholding- tho distribution distribution distribution tion than If Ie they actually paid their dividends ends in tn cash This purpose would bo ho to compel distribution of oe dividends ende In cash instead of ot stock |