Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-11-16
Republicans Object 10 Demo-
cratic Congress Fixing lax
eS for 1920 When Repub-
HcanS Win Be in Control.
SIMMONS ADMITS ALL
ESTIMATES GUESSES
Members of Committee De-
clare Incorporation Of Nc
Adoo's Suggestion Will Re-
quire Rewriting Of Measure

teN MORNING JOURNAL SPECIAL LEASED WHEEL
Washington. Nov. 16.-Downward
revision of the war revenue bill to
about the. six billion dollar total ree-
commended by Secretary McAdoo ap-J
pears to be assured, members of the
senate finance committee said tonight
after Mr.. McAdoo had personally eA-
planned to the committee suggestions
as to future government financing
made in his letter last night to CHAR
man simmons
Some of the secretary's proposals,
however, especially those to abandoh
excess profits taxation and increase IN
dividual income taxes in 1920, met
with strong opposition, senator's SAID.
Republican opposition TO Mr. NC
Adoo's recommendation for immedl-
ate specific limitation of taxes 10
$4,000, ,000, 900 in 1920 also developed
but Senator Simmons said a majority
of the committee favors 1t.
Because of prospective republican
control of both houses of congress
next March, republican opposition 70
limiting taxation two years hence was
not unexpected, and strong flgnt IN
both houses on this feature Of the rev.
enue bill is now considered propaple'
If it develops it will be the first seri-
Gus partisan difference in the meas
ure's consideration.
Estima les All Guesses.
In a statement tonight regarding
Mr. McAdoo's conference with the
committee, Chairman Simmons said
the seeretary's estimates of $lS,00o,-
100000 of government expenditures
next year and of probable reduction
nv 1920 which would make posslpie
reduction of the tax bill to about four
billion dollars are "gnesswork," based
upon all possible but incomplete lntor-
nation.
"The SIS, O00, 100000 estimate said
Senator simmons, 'is nothing but an
estimate and, according to secretary
McAdoo. not much more than an en-
liehtened guess 1t was guessed at az
fer receipt of all possible information
available at this time. The war, navy
and other departments cannot now
give absolutely reliable statements OF
their requirements and do not KNOW
what they can lop off.
Neither is it known whe her we
must continue advances to the aliles'
hut the estimates are based upon the
assumption that we Will
"But with these estimates, Secrelafy
McAdoo thinks if we raise S6,o0O,ooo'-
900 by taxation he can finance tne
government for the next fiscal year.
Regarding Mr.. McAdoos estluiate
for reduction of t9xation Tor l9zo 70
$4,000 900. 900, Chairman Simmons
added.
"The secretary believes II to be OF
tba highest importance that business
he advised in advance as to what TAX
Lax Hr
II that is not done. with special ses-
sion of congress next year to enact
revenue legislation 1t would take tiVee
or six months and be near the enc
of the year before people would kno"
what they would have to pay.
Profit Tax Undesirable.
Regarding the plan to abolish ex-
cess nrofits and to increase individ-
nal income taxes by 1920 Senator
simmons said Secretary McAdoo based
his recommendation on the opinion
that II is. difficult to fix satisfactory
excess profits tax. Such tax, Secre-
tary McAdoo stated, it is inherently
undesirable. burden upon business
in essence q consumption tax and III
the nature of an income tax
Senator Simmons would not esti-
mate how much longer the committee
will require to revise the bill. He SAID,
it might take several weeks or only
one or two.
Other members. however said in
cporation Of McAdo's suggestions
would virtually require redrafting OF
the entire measure.
The finance committee will meet to-
morrow to begin its work.
There is O general sentiment in the
committee that many of the specla
excise taxes, including those on lux
uries. should be stricken from the bill
Modification of other schedules also !;
favored but most members agree thai
the course of future revision canno
he definitely determined until the
transition of the country from a wal
to a peace basis is further advanced