Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-12-04
DECL LARES|T TIME
TO REPEAL EXCESS
PROFITS TAXATION
Secretary Glass Says This
Tax Adds to Living
Cost.
HAS BEEN PASSED ON TO
CONSUMER IN HIGH PRICES
Rigid Economy Essential, Head
of Treasury Urges, in Gov
ernment Financing.
DISCUSSES FOREIGN SITUATION
sympathy, lie Says in Annual Re-
port, Must Not Lead America to
EXag.cratc Europc's Needs.
HAS BEEN PASSED ON TO
CONSUMER IN HIGH PRICES
DISCUSSES FOREIGN SITUATION
icy Associated r.casl

. WASHINGTON, Dec. NO apprcc!-
able reduction in taxes for the next
fiscal year is TO bc thought Of Secrc-
tary Glass declared in his annual re-
port sent today to Congress. Govern
mcnt receipts mus. be kept a. their
bring government borrowing to an end.
Revision Of the revenue laws, 50 as
o place heavier burden of taxes on
The normal income. was urged b! See
rctary Glass.
Mr. Glass declared that the excess
lroitS tan provisions OF the present
JAW should BE- eliminated, and the rev.
cnuc ihus sacrificed bc made M from
an increase IN the taxes on The average
income.
Revenue derived from the lower
amounts assessed under sur,ax pro-
visions OF the laws may we'll be in
creased, said MIR Glass. who added
,hat the toprlosr amounts listed under
thuse provisions already had passed
thctr usefulness.
Seek rHA-Frcc Securities.
The only consequence of !ncroasIn s
SuFtaA lHw, hc said. would be TO drive
,t"ssctscrS of great incomes 10 invest
municipal securities" which a-c wholly
iaN exempt.
,rnr, The ro.amm Treasnry plan seeks 70 raise
si.oee without attempting 10 disturb
incomes OF persons whose salaries
oarciy inest living costs, as any
4
harden on class unable to bear it,
faSing expenditures estimated "A;
sG'3;ss.sdn 800 for n" year ending June
ending June 30. 1921. jh" government
must enforce rigid aconomy Mr Glass
declared. He placed the deficit for the
current year 1t S3.JGJ. c0o 900. and .or
the year ending June so 1921. at an.
proximately s2.oo5 Ooo.oco
on this, basis. Mr.. Glass urGed Con
ELess 70 deny every appropriation for
expenditure In new fields He said
,ne same poi;ey should obtain until the
nndcr way and repayment OF In. war
debt satisfactorily begun"
Mr. Glass charged tina, excessive
most vital factors" in Increasing No
cost oi living, and argued that il was
urgently necessary to keep down public
expenses for this reason. as well as bn-
tauSc or the drain on the ;aXpaycrs.
Excess Profits Tn. Objectionable.
The present revenue laws need re-
NIsinE 10 meet nav conditions. he said
lie referred particularly TO tho excess
prohts tax laws which he described
time cxpcdient." 1t would be still more
objectionable in peace time. he added
Less harmful forms" OF deriving
funds for The government should be
that the excess profits tax had been
Tfes2,o1nsihle ,1ia for much of the increase
passed on - the consumer
IL ENCOURAGES wasteful cxpcndi-
.n.cs, puts premium on overcaptali-
"ation and a penalty on brains" the
secretary continued. at discourases
,ew ventures ana new cntcrpris~s and
nsta9!ishes old ventures in their mo-
hopoiics. In many instances il acts as
CONSUMPTION tax. is added to the cost
or production upon which porfts are
snrea' nern ard ddelG;r,mining IT ;I, prices: 1T has
on the statute books. continue To- be-
n material factor in the Increased cost
should Fix Ixcmpt>d Scn:..
In this connection Mir. Glass also
urged redraftinS OF the revenue laws
taxes. through the investment OF
wealth in the obligations OF States and
municipalities. He said laws should
nc enacted which would compel the
reporting Of such, incomes. although
they are wholly tax exempt. and thar
indiv,Gmnl ndt Snm with, NTH Other income of an
oasis Tor assessing Federal taxes on
SnH amount derived from taxable
Relations between conditions in
Europe. and those in the United States
were discussed also by Mr Glass lie
srna, sItu 'hnt ndoi 4indouhtedly there was a very
Shcnt nccd IN Europe for financial as
sistance. but that The situation had
pccn inuch exaggerated
..1r %roniein % One for Exporter.
we must all feel deep symDathv Tor
Europe today" he said sui i'pS we e"T n,mst rS,
i,o1 indcnnn, n,doW our our sympathy T. warp our
mean mean lin" tinancini' LIT Dy cXaGserating Euro
them
financing Europe belongs IN larpprpn prGnitm EN- h %t
cAporlcr; because industries cnnnot he
reoncnca opened without raw stocks. &c
government financial assistance :,
the past and talk OF fnturc .rn,,sr, IN
ncnt or banking aid to finance cDncu., 49, II
nave apparently led our industrinIp pot mn,, >
csrns to the erroneous cxpcctntjon, ,m, Gnn con /, ,
their warr, profits. based largniv on ina n,l
ports, will continue indeGnitcIvs wi., I. ,e,,, en-
|%n,Ey %d,y rixH h on fheir part. TO them viii viii
hHm fnimro VIII III al faLi The eonsequences 'o of
The Treasury will continun 80
in erect ,si,tn since the armisticc. to restore
en, mental control and interference 'vsin, With
respect to the nations foreir,, trahn
Mr.. Glass said. Only through ihis
means, he argued. .conld a "heaith'y '
lie added that removal OF any in
hncncc by the government should pro-
vide the 'lccntivc for American com.
morce nm to 20 into TIC world markets
the peace treaty Will mc:,sIrabIv i'm .
mLate export trade. Mr.. Glass declared.
:" Continued on Second PagcD