The Washington herald., 1919-05-10
Senator Penrose Declares
They viii Be Wiped
Of Statute Books.
HE OUTLINES POLICIES
Watchword of Session viii
Be Retrenchment and
Economy.


rose. of Pennsylvania. who will be
the chairman Of the Finance Com
mittee.
Here are the things which Senator
Penrose will propose to the Senate
for the regulation OF the country's
Frances:
L Repeal OF the luxury taxes.
= Installation Of a budget system
,. simplihcation Of the tax laws.
T. Reduction OF taxes Of individuals.
;. Investigation of war expendi-
lures.
6. Repeal of all powers heretofore
granted for price-hxing and other
forms Of interference with legitimate
business.
Senator Penrose declared that RE
trenchment and economy" should be
the watchword of the next Congress
under Republican control. He be-
lieves that every effort should be
made to restore business to its normal
status and that government expendi-
lures should be reduced as quickly as
possible.
First Business.
The first task of the new Con-
gress. in Senator Penrose's opin-
ion. should be the consideration of
the appropriation bills which failed
OF passage at the last session.
1t will be necessary to have these
bills passed before the end of the
fiscal year. June 80. which means
that both houses will have to work
with celebrity to accomplish the
task. With these measures out of
the way. there will come the other
measures. which will require more
deliberate consideration.
'As far as revenue legislation is
concerned" Senator Penrose said.
1T is likely that a resolution will
be proposed for the repeal of the
so-called luxury taxes.
These taxes were inserted in the
revenue bill by the House Ways
and Means Committee under the
stress of war conditions and later
on. after the armistice were elImi-
mated by the Finance Committee of
the Senate with the concurrence of
the Treasury officials as being ha-
RAISING and difficult of enforcement
and at the some time producing lit
tie revenue compared with the ex-
pense of collection.
THE House rates of the so-called
luxury taxes were put back in the
bill on the floor of the Senate un-
der Misrepresentation Of their char
acter and they could not be changed
in conference as the question was
not before the body, the taxes be-
Ing those of the House.
THE resolution repeating the taxes
would have been passed in the last
Congress had the resolution for re-
real been considered before adjourn
7 nent
PERHAPS the most important legis-
alton to appear in the new Congress
cIating to the revenues is legislation
or n budget system. and by this /
mean a budget system administrative
md legislative as well.
There is almost a complete absence
II a budget system in the government
Il the United States and this fact. to-
;ether with the habit of extravagance
nd wasteful expenditures developed
" the war. will produce a chaotic con-
lition in the income and expenditures
.ccount of the government unless a
,udget system is promptly provided
or.
Receiving Attention
The subject is already receiving
he attention of some of the most
,rominent business men in the United
;tates as we'll US some OF the execu-
i've and legislative departments.
TO my mind the establishment of
uch a budget system is the most i'm
)ortant question before Congress. as
IL others are ultimately related to il.
.teps are being taken to formulate an
nuuiry looking to legislation at an
arly date on this all-important ques-
ion.
Later on. as soon as possible. the
question of simplifying the tax laws
rusht to be taken up. especially with
view to simplifying the returns to
e made out by taxpayers. II will
lardly be denied that the tax returns
n their present form are incompre-
tenSlOle 10 Ine Ordinary taxpayer.
Senator Penrose asserted that no.
oOOo0. 600 over and above the actual
stimated government expenditures
lad been recommended by various
abinet officers last year.
He said this emphasized the need
q careful scrutiny of all requests
rom government departments for ap-
Topriations- BY way Of example, he
dded that il will be necessary "to
nd out how the soaring deficit of
he railroad administration Is to be
eg1lated before we consider the
mount of money which the Treasury
. going to require for this purpose"
Senator Penrose expressed the
pinion that II care is exercised and
raste abolished taxation can come
own. Unless this is done, he said,
Unfortunate business consequences
rill follow.
In the matter of investigating the
onduct OF the war. Senator PEN
ose said he Is not in favor of a
,eneraI investigation of all govern
aent departments in a blind parti-
an spirit Some allowance should
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