The daily star-mirror. (Moscow, Idaho) 1911-1939, 1920-12-09
SECRETARY HOUSTON
WANTS MORE TAXES
INCREASED TAXES NECESSARY
TO PROVIDE SIXTEEN Bill
LIONS In FOUR YEARS.

Washington-(By A. P.)-lmmedi-
ate revision of the nations tax laws
on the basis of an annual levy OF
four billions of dollars for period OF
four years, and including an increase
of two per cent in the taxes on in
comes up to $4,000, is urged by Sec
retary Houston in his annual report
sent today to congress-
| Repeal of the excess profits taxes,
elimination of certain of the so-called
luxury taxes, including the levy on
soda fountain and similar beverages.
and a readjustment of the rates in the
| higher groups of income taxes, is
proposed by the treasury chief To
meet the losses brought about by
these proposed changes, Mr. Houston
recommends revised and new taxes to
yield about $2,000,000, 900 as follows:
A tax of 20To on corporation profits.
distributed or undistributed, in ad-
dition to application Of { higher sur
tax rate to yield $690,000, 900.
An additional tax Of 6b on corpor.
alton incomes to yield $465, 900, 900.
Readjustment Of BfftHx rste1 1~UR-1n-
comes to yield an additional $780,
100000.
Adjustment Of the $4,000 exemp-
ton allowed corporations on income
to yield $4,000.
An increase from the present 40 to
$50 In the tax on incomes Of $4,000 or
less and from 8%o to 1870 in the tax
on incomes between $4,000 and $10,-
900, the whole estimated to yield
$15O.940, 900 annually.
A tax of two cents gallon on gaso-
line for motor cars and all other pur-
poses, to yield $90,000,000
A federal license tax Of 80 cents per
horsepower on the use of motor cars
to yield $100,000000.
An additional sales tax on automo
biles (other than trucks and wagons) |
and motorcycles and motor car ac-
cessories to yield $100,000,000.
A 1920 additional tax on theatrical ,
admissions to yield S70,000,0000
An additional tax of 50 per thous-
and on cigarettes to yield $4,000, 900.
An additional tax of 25 cents per
thousand on cigars to yield $4,000, 900.
An additional tax of cents per
pound on tobacco and snuff to yield
Sc 100000
An additional tax of SO on candy /
@ yield $20,0O0,O00.
An additional tax of 7%o on chew
ng gum to yield $2,000,000.
An additional tax Of 7%o on toilet
soap and toilet soap powders to yield
a, 100000.
A 1920 tax on the sale by manufac-
urers, producers or importers of
perfumes. costumes and medicinal
,rticles in lieu of the present tax on
he consumer to yield $10,000,000.
An additional 5ge tax on jewelry and
,recious metals to yield s23,000,000.
An additional tax of $50 on musical
Instruments to yield $13,000,000.
An additional tax Of $50 on motion
icture films to yield $4,O00,000.
In the readjustment of surtaxes,
Ir Houston proposes the division OF ,,
ncomes into saved" or reinvested
nd spent On the former class he
would limit the highest tax to 20%
While the income spent would be sub {
ect to a tax ranging as high as 5O%o
rnder the plan proposed by the sec
etary. incomes between $4,000 and
6 600 would be taxed 2@o on the
aved and the same on the part spent. :
he same ratio with a graduated In :
rease would apply to incomes up to
80 900 where the maximum OF 20|o !
n saved income is reached. From :
30 600 to $4,000, the rates would be
O@s on saved and 25%o on spent; !
40 900 to $4,000, 20%o and 5000; I
50 900 to $4,000. 2O%o and $50;
Is, ,OOO0 to $4,000 201 and 40@o, and
yer s1O0 900, 209e and 50@o or total {
TX of 1910. !