The Greeneville daily sun. (Greeneville, Tenn.) 1918-1920, 1919-12-09
New ! Official
Political Contest
Is Approaching

Press.--A new contest between the
democratic administration and the
republican congress over revision Of
revenue laws is apparently approach
ing.
Both administration and congress
sional leaders agree there must be re-
vision to meet record peace time ex-
penditures but agreement ends there.
Secretary of the Treasury Glass,
backed by President Wilson, wants a
revision started at once, Republican
leaders say it will not be done at this
session Of congress.
Glass, again backed by the presi-
dent, wants excess profits taxes abol-
ished and an increase in the normal
income tax rate and the surtax rate
on intermediate incomes. Republic
can leaders say they are doubtful
about raising sufficient revenue If this
is done.
The president in his message to
congress came out strongly against
tariff legislation. Congressional
leaders say a new tariff should be
enacted although they doubt the ad-
visibility of doing this knowing the
president would veto the bill.
The revenue bill for 1920 was
enacted at the last session of the
65th congress. Glass contends that
the present session should frame a
bill for 1921 so that business will
know in advance what taxes it would
have to pay and the government can
prepare its machinery for tax collec-
ton.
"There will be no general revision
at this session." said representative
Longsworth, Ohio, a member of the
house ways and means committee.
There is a tradition that the party
which frames revenue measure just
before election fares badly at the
hands of the voters, but congressional
leaders deny they have this possible
ty in mind in delaying.
Glass in his annual report in con-
gress declared the excess profits tax
encouraged wastful expenditure,
puts a premium on overcapitalization
and a penalty on brains; discourages
new ventures and confirms old ven
lures in their monopolies." He also
put upon it part of the blame for high
prices.
81 do not think the ways and means
committee is likely to follow this
was the answer Repre-
sentative Green, Iowa, made to Glass.
Green, next to Chairman Fordney, IS
ranking member of the committee.
"There are many objectionable
features connected with the excess
profits tax but the reduction in rates
will migrate its application" Green
"It has one merit that is
often overlooked, namely, that only
those who are making high profit pay
it,"
The 1920 revenue code will raise
$4, 900, 100000 it is estimated and
about billion and quarter of this
will come from excess profits. Ii this
source of revenue were abolished,
congress would have to find some
thing to take its place since expendl-
lures are not expected to be less than
IA. 000, 100000 annually for some
years.
To make up for loss through the
abolition tax. Glass suggested raise
in the normal income tax rates and
n raise in the surtax rate on medium
sized incomes.
To this Green says:
at would be extremely difficult to
obtain the amount produced by the
excess profits tax from incomes IL
is well that the multi-millionaires are
already transferring their holdings
to tax exempt securities. think the
same result would follow if we un-
detook to raise intermediate rates
as suggested by the secretarys re-
port"
President Wilson, in his message,
advised against a high tariff, warn
ing that it might prevent Europe pay
ing her debts to the United States in
goods.
Green says a higher tariff is the
''most natural method of increasing
our revenues" The low rate of for
eign exchange, he says, have reduced
sever the low rates of the Underwood
bill"