Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-12-03
NO REDUCTION
in TAXES FOR
ENSUING YEAR
Glass Declares Appreciable
Cut Is Not to Be Thought
of in Annual Report

annual report sent to-day to Con-
gress. Government receipts must be
| kept at their present figure, he
said, in order to bring Government
borrowing to an end.
Facing expenditures estimated at
/ 50, ,629. 1853 for the year ending
June 80, 1920, and $4,473,69 1858
| for the year ending June 80. 1921,
the Government must enforce rigid
economy, Mr.. Glass declared. He
! placed the deficit for the current
year at $S,905. 100000 and for the
year ending June 80, 1921, at ap-
proXimately $2,005. 100000.
on this basis. Mr.. Glass urged
Congress to deny every appropria-
ton for expenditure in new fields"
He said the same policy should OBJ
tain until the Government had its
sinking fund well under way and
repayment of the war debt ''satis-
| factorily begun"
! Mr.. Glass charged that excessive
Government expenditures were the
most vital factors" in increasing
the cost of living and argued that
1t was urgently necessary to keep
| down public expenses for this reason
as well as because of the drain on
| the taxpayers.
LhWS NccO 1teNISlOn.
The present revenue laws need
revising to meet new conditions, he
| said. He referred particularly to the
excess profits tax laws which he
| described as being Objectionable
even as wartime expedient." 1t
would be still more Objectionable in
peacetime, he added. Less HARM
! full forms of deriving funds for
the Government should be employed.
| the secretary said, adding that the
excess profits tax had been respons-
/ ible for much of the increase in
! living costs because it had been
passed on to the consumed.
1T encourages wasteful eXpendi-
lures, puts a premium on overcapi-
| talization and a penalty on brains"
the secretary continued. 1T dis
courages new ventures and new en-
| terpriZes and establishes old ven-
lures in their mopoliessonn, ,SHRD
lures in their monopolies. In many
instances, it acts as a consumption
! tax, is added to the cost of pro-
| duction upon which profits are fig
ured, determining prices. 1t has
been, and will, so long as it remains
on the statute books, continue to be
material factor in the increased
cost of living"
In this connection, Mr.. Glass
also urged redrafting of the reve-
nue. laws to prevent the evasion of
federal taxes through the investment
of wealth in the obligations OF
states municipalities. He said
laws should be enacted which would
compel the reporting of such in
comes, although they are wholly tax
exempt and that that sum with
other income of an individual should
be computed as the basis for as
sessing federal taxes on the amount
derived from taxable sources.
Europe Needs Help.
Relations between conditions in
States were discussed also by Mr..
Glass. He said that, undoubtedly
there was a very great need in
Europe for financial assistance, but
that the situation had been much
exaggerated.
I'VE must all feel deep sympathy
for Europe to-day" he said, but we
must not allow our sympathy to
warp our judgment and, by exag-
gerating European financial needs,
make them more difficult to fill
The problem of financing
Europe belongs largely to the ex.
porter because industries cannot be
reopened without raw stocks. Gov
ernment financial assistance in the
past and talk of future government
or banking aid to finance exports
have apparently led our industrial
concerns to the erroneous eXpecta-
ton that their war profits, based
largely on exports, will continue in
definitely without any risk on their
will foI he &c
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
tons foreign trade" Mr.. Glass said. !
Estimated Needs.
Returning to the estimated Gov
ernment expenditures for the fiscal
year ending June 3, 1921, Mr.. Glass
said the military establishment |
would ask. appropriations aggregat-
ing s9S9.57S,657. OF this sum,
S97,S92, 020 would be required, he |
said, for maintenance of the army |
proper while sS5, 5000 would be |
to the national guard. |
The Military Academy would re- |
ceive$6
For the navy, the appropriation of |
s542,O31,S04 including s1S5,24S,000 |
for a building program is to be |
asked.
An aggregate of s194,57S,0OO will |
be sought for public works. In this
is included funds for rivers and |
harbors' improvement totalling $53,- |
659265 Fortiications arsenals
and military posts will require
about 100000.
The legislative establishment. will |
need s9,O25,297, it was estimated,
while the executive branches of the
Government combined will seek a
total of S149,111,463. Chief among
the latter departmental expenditures
Is an estimate of S73 3,4O5, ,101 for the
Treasury Department. This sum
which is much larger than in former
years indicates the added expense to
De borne in the enforcement of pro-
hibition. Included in this also is
he appropriation of $37,528,102 to
De asked by the Department of Ag-
riculture for carrying on its field
activities. -
The judiciary will ask for S1,634,-
100. For foreign intercourse, ap-
totalling S11,243,2JO 1
will be sought. Appropriations for
he Department of State, exclusive
Of the funds for use in foreign work 1
will be s1,571,350, and for the l
other executive departments, ap-
to be sought will be as
-ollows: War Department, proper.
s6,615,24S; Navy Department, pro- II
per, $3.097,S70 Interiors Depart