Evening star., 1919-12-27
FACING J
REVENUE PROBLEM.
House Committee Planning
for Current Expenses and to
Meet Huge Deficits.

The Ways and Means committee, IL
trusted with the job of raising enough
money to pay Uncle Sans bills, Is lay
ing awake nights trying to figure where
it will obtain the money necessary IL
carry on the government for this anc
the ensuing fiscal year.
Representative William i. Green OF
Iowa. the ranking republican. tells some
of the perp'exities that are crowdinS 4;
upon the members Of this most responsl
be committee of the House and the
opinions of the committee regarding cel %
tain phases of taxation.
Secretary Glass admits a deficit 70
| the year ending June 80, 1929, or
100000 needed for the Treasury an.
the total deficit is nearly four billio
dollars" Representative Green points
out, and the only way we can so o.
is by continuing to issue Treasury ceI-
rificates, of which We have been carry
ing about three billion dollars, but tn.
| amount Of which viii have to he il
creased.
Big Deficit for 1920.
''For 1921 Secretary Glass figure .l
deficit OF a little over two billions CL
dollars, but he gets this amount .,
oinitting items which must be met, bu
which are not included in the depart
ment estimates-such US the road ap-
priatlonS previously made, increa Sc Q
payment to government employees. dt :,
| ficiency bdl, deficit on government op~,
Grafton OF railroads, new Navy COZ
struction, shipping board demands, IT
creased pay of the Army and Navy in.
crease i'll pensions, increase in coInDon--
Sation to disabled soldiers OF the latt-
/ war-whicil are certain to amount To-
! at least Il billion dollars and for which
| there may be allowed a billion and :,
| half.
Both the excess profits and the IN =
come taxes are reduced for this tax
| able year although that is not gen
orally understood. We have been get-f
| ting about S1,700. coo from the excess
| prontS tax. IT is estimated that for
the taxable year 1919. notwithsta nd =
| ing the reduction, We will receive 81 -
| ioo,0o9.eou. l think this is too high.
as the rate was greatly reduced and
( the profits are not so large.
There is clamor in some quarters
! for repeal OF the excess profits tax
ana II Is said that this would reduce
! the cost of living. Nothing could b.,
more absurd. The excess profits tax
that is to be collected during the CON-
| ing year is for the taxable caiendar r
yc3r 1919. The sales upon which the,
prohts are to be computed are sales
already made during the year 1919.
! i ne theory that to take off the tax on.
these goods already sold during 1912
/ would reduce the cost of living is
simply ridiculous.
Would Favor Practical Substitute.
IF any practical substitute could
be found I would favor either taking
OF the excess profits tax for 1920 o.
| greatly reducing il, and if our gov
ernment expenses were cut down a.
they should be, we ought TO at leaa.
make Il further reduction but il il l.
abolished where will the money como,
from 10 offset it?
I The nat tax on corporation incomes
l. II
increase the tax Oh great incomes "a,
the SupertaAeS are now causing rh..
owners OF great estates to put their
money INTO tax-eNteInpt securitie.
where IL cannot be reached at all
I'm view of the high cost Of liviuc
the taxes on the smaller inconls
, seem to me to be already as high D
! people viii stand. We might raise tll.
! tax on estate of the deceased, but this
would afford only d small part of vha {
we would need. Even with the mos
rigid economy there is sure to be u
great deficit in the Treasury, and
there is danger that We may have to
resort to another bond issue, which
would depreciate the former issues
and add to imitation. thereby increas-
ing the already oppressive cost Of liS-
ing.
Presidents Attitude on Tariff.
TT has been suggested that relief
could be obtained by additions TO oUr
own tariff. and this is true to some
extent Unfortunately the Presiu,nt
i'll his last message 10 Congress mad b.
il. | think. reasonably clear that ad
: -itlUnal tariff duties would not be :ll,-
proved ut the White House. IL wo,iItt-
in my opinion. be useless to prepar.'
, "a general revision of the tariff whi"i
would make amy substantial increas,
| III the duties, for the reason that j.
could not be expected that il woul,,
receive presidential approval. TIL.
, House has already passed some bill.
, through which the disposition of th,
President can be definitely learned.
. and until these bills are presented 10
him | see no use of giving any very
serious consideration TO a genera
tariff review
i, The ways and means committee i'm,
| m ediately after the holidays is to Ia lzo
up some proposed changes in admins
trative features of the income and eA :
cess profits laws with view to sim
| plifying the general statutes and
| equalizing their application. II lie ex
pected that these amendments wif