Tax Muddle

To no small extent, the current confusion in business and the difficulty of predicting how affairs will shape themselves later this year, are attributable to the uncertainty regarding tax measures to be enacted by the present Congress.

A few weeks ago the Mellon plan seemed almost certain of speedy passage. Now it has been badly mangled in the House (see Page 3), with the Senate yet to be heard from, and a possible Presidential veto to finish off with. Many a citizen will pay his income tax in quarterly installments this year, figuring that he would rather retain the money himself in case a cut is made than wait for the Government to make a refund.

But Congress, while settling nothing, has stirred up other taxes. The attempt to revive the excess profits tax proved short-lived, yet caused gooseflesh among many corporations and investors. However, a movement is underway to increase federal inheritance taxes regardless of those already laid by the various states.

It seems obvious that despite the great to-do being made on the Teapot Dome affair, taxation will be a political issue of first magnitude next Fall. Most business men are now wishing that the election were over, the political back-biting over; that the opportunity were presented to readjust our taxes calmly and scientifically, without political interference.