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Show CHANGE IN TAX LMESSENTIAL, KAHN DECLARES Business of Country Demands and Fjust Have Revision, He Declares ECONOMIC ASPECTS OF PEACE TREATY FLAYED New York Banker Calls for Continuation of income Surtaxes WASHINGTON. Der. 'Z i . Business of the country is demanding and mdbt have revision of the tax laws If It Is to continue a healthy growth. Otlo H. Kahfi, New York banker, told the house ways and means committee today to-day In the course of a statement In which he denounced economic ;ispects of the treaty of Versailles and declared de-clared for u continuation of income su rtaxes. The tXCeas profit lax "must go." Me. Kahn said, adding while it w:cs theo-1 refit ally sound it.- .lisadv atages oti'.-balanced oti'.-balanced Its advantages. OPPOSED TO EX EM PI IONS. Continuation of the incomo surtaxes. sur-taxes. Mr. ICahn explained, was a so-1 so-1 la! and economic necessity, but he warned against excessive levies on the; higher Incomes on the gioond that they did not produce the maximum, ..r revenue for which they wcri designed. de-signed. He said also that he opposed any exemption under income tax pro-! visions. Melon- Mr. Kahn was called. Chair-j man I'ordncy stilted that he and oth- or members of the committee war in flivor of "some kind" of B sales tax OSTTtW of Hie means of raising the four billions of revenue needed annually by the government." PI At 1: LIRE W UK" Mr Kahn was asked during the course of his statement whether be thought the Signing of the treaty of Versailles would otl.;le all of the dll'-flculties, dll'-flculties, industrial and financial, now confronting the country. He replied that the Versailles' peace was "as QQUally devastating as the war in Its disregard of economic aspects-" Mr. Kahn blamed "the present financial fi-nancial turmoil." for the predicament 111 which the farmers find themselves. He said their condition was not due to financial deflation because "there has not been any financial deflation so far. TWA! ION BLAM1 l Taxation, according to Mr. Kahn. was one of the factors bringing about a collapse In the market. He declared j It was ri PC 0001)0 "that we retrace our steps and , re-establish a saner and fairer sysfem of taxation without any undue tenderness to capital Asked regarding recent proposals to tax bank deposits, Iho witness said such a step "would be almost calamitous calam-itous In Its effect." 1 1 IT- T McADOO Questioned us to the statement of W O. McAdoo, former secretary of the treasury, that deflation had been carried too far and that federal reserve re-serve banks should be allowed lo re-duce re-duce Interest rates and member banks encouraged to extend more liberal credits. Mr. Kahn .-.ml smilingly that "with all due respect to Mr McAdoo and his ability, I think that statement whs mads, with an eye to 924 rather1 than to 1921." |