Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-12-04
NO APPRECIABLE
TAX REDUCTION
IS POSSIBLE NOW
Secretary Glass Says Govern
ment Receipts Must Be Kept
AT Present Figure Until June
80, 1921.


rev MORNING JoJSNAL SPECIAL LuAsEo wtEEl
Washington, Dec. 3.-No apprecia-
Bile reduction in taxes for the next
fiscal year is to be thought of, Secre-
tary Glass declared in his annual re-
port sent TO-DAY to congress. Govern
ment receipts must he kept at their
present figure, he said. in order to
bring government borrowing to an
end.
Facing expenditures estimated at
$5,629, ,4S6, 1853 for the year ending
June 80, 1920, and $4,473,696,3 35S TO-.
the year ending June 80, 1921, the
government must enforce rigid econo-
my, Mr.. Glass declared. He placed
the deficit for the current year at $3,-
905, 100000 and for the year ending
June so, 1921, at approximately ST.,
COS, 100000.
On this basis, Mr. Glass urged con-
gress TO deny every appropriation
for expenditure in new fields" He
said the same policy should obtain un-
til the government had its sinking
fund well under way and repayment
of the war debt satisfactorily be-
gun"
Mr.. 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 reason as we'll as
because of the drain on the taxpay
ers
Revenue Laws Need Reyiying.
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-
scribed as being Objectionable even
as a wartime eXpedient." 1t would be
still more Objectionable in peacetime
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 consumer.
1T is encouraging wasteful eXpend-
itures, puts premium on overcapi-
talization and a penalty on brains,
the secretary continued. at discour-
ages new ventures and new enter
prises and establishes old ventures N
their monopolies, H. many instan-
{ ces, it acts as / G.dl39pption tax. Is
added to the cost of production upon
which profits are figured, determin-
ing prices. 1t has been, and will, so
long as it remains on the statute
books, continue to be material fac
tor in the Increased cost of living
I in this eennactien Mr. Cias7 alea
urged redrafting of the revenue laws
to prevent the evasion of federal
taxes through the Investment OF
wealth in the obligations of states
and municipalities. He said laws
should be enacted which would COM
pei the reporting of such incomes, al
though they are wholly tax exempt
and that that sum with other in
come of an individual should be COM
puted as the basis for assessing fed
eral taxes 'on the amount derived
from taxable sources.
Europe Needs Assistance.
Relations between conditions in
Europe and those in the United States
were discussed also by Mr.. Glass. He
said that, undoubtedly, there was a
very great need in Europe for finan-
cial assistance, but that the situation
had been much exaggerated.
1--WE must all feel deep sympathy
for Europe today 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. The
problem of financing Europe belongs
largely to the exporter because indus
tries cannot be reopened without raw
stocks. Government financial assist
ance in the past and talk of future
government or banking aid to finance
exports have apparently led our in
dustrial concerns to the erroneous
expectation that their war profits
based largely on exports will con-
tinue Indefinitely without any risk
has, ri To wi
profits of exports and upon them will
fall the consequences of failure to
make the exports"
The treasury will continue its
policy, in effect since the armistice,
to restore private initiative and re-
move governmental control and In
reference, with respect to the ma
tion's foreign trade, Mr.. Glass said.
Only through this means. he argued,
could "healthy economic life be
gained" He added that removal Of
any influence by the government pro-
vide the incentive for American COM
merce to go into the world markets
and establish itself. Ratification of
the peace treaty will measurapiV
stimulate export trade, Mr.. Glass de-
clared, because operation of the pact
would eliminate numerous political
risks and provide a surer investment
basis.
Government Agencies "Weak."
Closely related to any activities OF
the government in foreign trade is the
subject of incorporated government
agencies, withdrawal of which Mr..
Glass strongly urged He said their
manifest weaknesses were proof
sufficient that such arrangements
were not happy ones for the govern
ment nor for the persons charged with
administration of the corporatiors.
"a fCortinuaS m Pae- Twn'