Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-12-05
NO REDUCTION IN !
TAXES NEXT YEAR,
GLASS DECLARES

WASHINGTON, Dec. 3.-No APP
preciable reduction in taxes for the
Secretary Glass declared in his an
nual report sent today to congress.
Government receipts must be kept
at their present figure. he said, II
order to bring government borrow
ing to an end.
Facing expenditures estimated at
s5,629,4S6,359 for the year ending
June 80, 1920, and $4,473, 696,358 for
the year ending June so, 1927, the
government must enforce rigid econ
cmy. Mr.. Glass declared. He placed
the deficit for the current year at
S3.905, 100000 and for the year end
ing June 80, 1921, at approximately
$2,005, 600, 900.
On this basis. MI Glass urged
congress to deny every appropria-
alton for expenditures in new fields
He said the same policy should OBJ
tain until the government had its
sinking fund we'll under way and re-
payment of the war debt, 'satisfac~
torily begun"
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
public expenses for this reason as
well as because of the drain on the
taxpayers.
Revenue Laws Need Revising
The present revenue laws need re-
vising to meet new conditions. he
said He referred particularly to
the excess profits tax laws, which he
described as being objectionable
even as a wartime expedient." 1t
would be still more Objectionable in
peace time, he added. Less harm
full forms" of deriving funds for the
government should be employed, the
secretary said adding that the ex-
ca&s profits tax had been responsible
for much of the increase in living
costs because it had been passed on
to the consumer.
at encourages wasteful eXpendi-
lures. puts a premium on overcapi-
taliza ton and a penalty on brains,
the secretary continued. 1T dis
terprises and establishes old ven
lures in their monopolies. In many
instances it acts as consumption
tax, is added to the cost of produc
ton upon which profits are figured,
determining prices. 1t has been, and
will. so long as it remains on the
statute books. continue to be a ma
teria1 factor in the increased cost of
living"
In this connection Mr.. Glass also
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,
although they are wholly tax eX-
empt, 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.
Relations With Europe
Relations between conditions in
Europe and those in the United
States were discussed also b. Mr..
Glass. He said that, undoubtedly
there was very great need in Eu-
rope for financial assistance, but
that the situation had been much ex-
aggerated.
I'VE must all feel deep sympathy
for Europe today" he said, ''but we
must not allow our sympathy to
warp our Judgment and, by exagger-
ating European financial needs, make
them more difficult to fill. T..
of l.
longs largely to the exporter, be-
cause industries cannot be reopened
without raw stocks. Government
financial assistance in the past and
talk of future government or bank
ing aid to finance exports have ap-
parently led our industrial concerns
to the erroneous expectation that
their war profits, based largely Oh
exports, will continue indefinitely
without any risk on their part. To
them will fall the profits of exports
and upon them will fall the conse-
quences of failure to make the ex-
ports"
The treasury will continue it's pol
icy, in effect since the armistice, to
restore private initiative and remove
governmental control and interior
ence with respect to the. nations
foreign trade, Mr.. Glass said. Only
through this means, he argued
could a healthy economic life be
gained" He added that removal OF
any influence by the government
should provide the incentive for
American commerce to go into the
world markets and establish itself.
Ratification of the peace treaty will
measurably stimulate export trade,
Mr.. Glass declared, because opera
ton of the pact would eliminate nu-
merous political risks and provide
q surer investment basis.