New Britain herald., 1919-12-03
TAXES CANNOT COME
 DOWN NEXT YEAR
Sec. Glass Says Govt. Receipts Must Be Kept at Present Figure

| blC reduction m taxes Tor the next fiscal year is to be thought of, Sec retary Glass declared in his annual report sent today to congress. Gov "rnent receipts must be kept at their present figure, he said, in order to bring government borrowing to an end.
 racing expenditures estimated at $0,629, ,486,359 for the year ending June 80, 1920, and S4,473,6 3,696,35S for the year ending June 30, 1921, the government must enforce rigid econ omy, MT. Glass declared. He placed the deficit for the current year at $3,9O5, ,000,000 and for the year end ing June 30, 1921, at approximately $2,0O5, 100000.
 On this basis, MT. Glass urged con- gress to deny "every appropriation for expenditure in new fields" He said the same policy should obtain until the government had it's sink ing fund well under way and repay mcnt of the war debt Satisfactorily begun"
 Nr. Glass charged that excessive government expenditures were the most vital factors,' in increasing the cost of living and argued that it was urgently necessary to keep down pub lie expenses for this reaso as well as because of the drain on the taxpayers.
 Revise Revenue Laws.
 The present revenue laws need re- vising to meet new conditions, he said. He referred particularly to the excess profits tax laws which he de- &criDed as being objectionable even as a wartime expedient' It would be still more objectionable in peace time he added Less harmful forms" of deriving funds for the government should be employed the secretary said, adding that the excess profits tax had been responsible for much of the increase in living costs because it had been passed on to the con- sumner.
 Tt encourages wastefu cXpendi- lures. puts a premium on over-cap- italiZation and d penalty on brains, the secretary continued. "It discour- ages new ventures and new enterprises and establishes old ventures in their monopolies. In many instances, it acts as a consumption tax. is added to the cost of production upon which profits arc figured, determining prices. It has been, and will, so long as it remains on the statute books, con- tinue to be material factor in the increased cost of living"
 In this connection, Mr. Glass also urged redrafting of the revenue laws 60 prevent the evasion of federal taxes through the investment of wealth in the obligations of states and munich palities. He said laws should be cnapted which, would compel the re- porting of such incomes, although thcy a7rrcf wholly tax exempt. and that, that sum with other income of an Individual should be computed as the basis for assessing federal taxes on the amount derived from taxable sources.
 European Relations. Relations between conditions in Flu rope and those in the United States were discussed also by Mir. Glass. He said that, undoubtedly, there was very great need in Europe for finan- cinl assistance, but that the situation had been much exaggerated.
 "Wc must all feel deep sympathy for Europe tOdaN,' he said, 'but we must not allow our sympathy to warp our judgment and. by eXaggerating European financial needs, make them more difficult to fill Tho prob lcm of financing Europe belongs large ly to the exporter because industries
 
 stocks. Government financial assist ancc in tho past and talk of future government or banking aid to finance exports have apparently led our in dustrial concerns to the erroneous ex- poctation that their war profits, based largely on exports, will continue in definitely without any risk on their part To them will fall the profits Of exports and upon them will fall the consequences of failure to make the exports
 To Restore Private Initiative.
 The treasury will continue it's policy, in effect since the armistice, to restore private initiative and remove govern mental control and interference with respect to the nations foreign trade MT. Glass said. Only through this means, he argued, could a "healthy economic life be gained" He added that removal of any influence by tho government should provide the incen- tive for Am erican comme cree to go into the world markets and esta blish itself Ratification of the peace treaty will meaSurably stimulate export trade Mr. Glass declared, because operation of the pact would eliminate mum erous political risks and provide a surcr in NeStm ent basis.
 Closely related to any activities of