The sun., 1919-09-18
ALL WAR TAXES
WILL HOLD OVER
No Chance of Repeal This
Year in Face of 8 1-2 Bill
ion Deficit.
NEED LUXURY REVENUES
House Experts Will Not Act
Until Expenditure Limit
Is Fixed in 1920.
NEED LUXURY REVENUES
Special Despatch to TIE Sun.

WASHINGTON. Sept. 17.-War taxes
must be continued until next year be-
cause Of the large governmental ex-
penses Of the present fiscal year, mem-
bcrs of the House Ways and Means
Committee virtually have decided AL
though no formal action has been
taken. sentiment in the committee,
which a few months ago favored re-
peal OF some of the more irritating
taxes, has swung to the opposite view.
The statement yesterday OF Repre-
sentative Good (Iowa). chairman of
the House Appropriations Committee.
that with the strictest economy and
continuance Of the present taxes the
Federal Treasury will face a deficit for
the fiscal year OF more than $780,
oOt 900 on June 80. 1920, has made it
certain in the minds of members Of
the committee that the Government
taS revenue should not be reduced.
Representative Fordney (Mich.) },
chairman of the Ways and Means
Committee, formerly in favor Of re-
pealing some Of the sections of the
revenue law, now believes they should
stand until some idea of the Govern
ment expenditures for the ensuing
year can be obtained from the execu-
tive departments. These will not be
submitted until after the convening of
the regular session in December and
are for appropriations for the fiscal
year beginning July /. 1920.
I'VE are certain to have a deficit. and
large one, at the end of the present fis-
cal year which will have to be added to
the war debt said Mr.. Fordney. "and
any step to reduce revenue must be
excess profits and income taxes change
next year. and We are planning certain
changes In the tariff laws which will az
feet revenue. believe we should con-
slider all these related subjects at one
time, and not try to complicate the stu
alton by repeating parts OF the revenue
law now
Inc STRONGEST ACpCaA Noe
directed at the tax on soda water and
ice creams. Hundreds of petitions ask
ing its repeal were sent to Congress and
In response to this the House passed a
bill eliminating the soda water section
from the revenue law. This was almost
two months ago, the hope being that
soft drinks would be made cheaper dur
ing the hot weather.
Opposition to the repeal was encoun-
tered in the Senate and the repeal has
slumbered ever since. 1t is practically
assured that the repeal will not be
passed until next spring. before hot
weather begins. IL even then considered
desirable. The Senators hold that moth
ing is quite SO nearly luxury tax as the
imposition on drinks In a land where
water Is free.
Another request was for the removal
of the so-called luxury taxes, but az
thess affect only the higher priced
clothing and mean a loss to the Gov
ernment of nearly s100,O00,000 a year
opposition was strong against their re-
peal.
Mr.. Fordney said all plans to press the
repeating bill to a vote had been aban-
doned. Likewise petitions for lifting the
amusement taxes, for theatre tickets. are
falling on deaf ears, and must wait until
a general view of the Government finan'
cial situation is submitted to Congress. A
considerable portion of Representatives
and Senator's adhere to the opinion that
the universality of such taxes as these
on beverages and amusements have high
value as persistent reminders to the
whole public of the fact that an obliga-
ton to support the Government substan-
TALLY and generously Is not alone the
duty but the privilege OF the citizens. The
psychology OF such taxation they hold to
be good.