The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1920-12-17
LARGER TAXATION
ON SMALL income
Huston Urges Present Surtax
Rates on Large Incomes Be
Cut Because UnCoiIeCtible.
WOULD CHANGE PROFITS TAX.
New Taxes on Automobiles and Luxur-
les and Greatly Increase Stamp Taxes
uegested-Secretary of Treasury
Forecasts a Four-BiIon Tax.

Westinghouse of the
Treasury Houston recommended in his
annual report to Congress on the ma
on taxation be revised so as to yield
$4,000,000,000 revenue annually 80 the
end at least of the fiscai year 1923. "
Mr.. Houston recommended also re-
peal of the excess profits tax, read
justment of rates in higher income tax
asoups, and elimination Of few luxury
taxes, notably that on soft drinks,
which has proved hard to collect and
comparatively productive. He pro-
posed large increases in taxes on cor
poration profits, raising the tax-levy
on incomes up to $1,000 by 2 per cent,
and increas = by 4 per cent incomes
between $1,000 and $4,000. Increased
taxes on most luXuries also were urged.
The revised and new taxes were
estimated to yield $2,OOO,OOO coo.
The report is to be acted on at the
present session of Congress without
waiting for the special session that
Senator Harding is expected to call
after his Inauguration as President.
In explaining his plan for revision
without reduction of revenues Mr..
Houston said in his report:
While 1t is highly desira!le that the
tax law should be revised at the
earliest possible uate 1t is imperative
in my opinion, that the revenue from
taxation be l. aintained after this tis-
cal year on :. level of not less than
$4,00U,000,000 year to the end a. least
of the fiscal year 1923. The internal
revenue receipts may not greatly eX-
coed $4,000,0O0,O00 even ir the fiscal
year 1921, q the basis of existing
law.
We now have floating debt (taX
and loan certificates maturing within
twelve months) f approximately 81
350,000000 This short time debt should
not be funded but should be retired,
If possible, by the end of the fiscal
savings certificates now amounting TO
$S00000000 fall due, and on May 20,
1922 Victory notes now amounting to
about S4,250,0OO,0O0 mature.
In proposing this program to Con-
gress Mr. Houston named the new
taxes whereby he hopes to compensate
for the abolition of the excess profits
tax, but in so doing said: 81 shall not
attempt to discuss them" but that
"these possible Sc rces. or income are
mentioned for tie information of Con-
gress." Mr.. Houston's possible |
sources of income" are as follows
A TAX o. . cents gallon or case lene, |
whether for automobile or other pur-
poses yielding S90OO0,000.
A Federal license tax of so cents !
for each horsepower on automobiles, |
yielding 100000 600.
A sales tax Oh motor vehicles other |
than trucks and wagons motorcycles |
and motor car accessories, yielding
S1O00OO,OO0
A 10 per cent additional tax on thea
tC- tickets and admissions, yielding |
500 10000.
Additional tax of 81 thousand on
cigarettes yielding ST0OO00O0.
Additional * of % cents a thousand
on cigars, yieldi',g S5,000.OO0.
Additional l.. of cents 4 pound on
tobacco and snuff. yielding SS,000,O00
Additional tax of per cent on chew
ing ~ =, yiedln; S2,OOO,OO0.
Additional tax of Z per cent on oilet
soap and toilet soap powders. yield
irg StOO0.000
Ten per cent tax on sale b., manu-
facturers, pro Ulcers or importers of
perfumes. cosmetics anc medicine ar
ticles, insteHu of esnni lax ca con-
suner yielding s1O.OO0,OOC.
Additional per cent o. lcwel-y and
4 cioLs metals. yielding $4,000 600
Additional tax Of > per cent on musi-
cal instruments, yielding $4,000 600.
Additional tax of per cent on mo
ton picture inns, yielding Si,COO.OOO.