New-York tribune., 1920-11-08
Treasury. Officials Say An
nual Tax Bill Must BE
Continued to Meet obi
cations and Run Nation
8 Billion i'm Debts
Mature Before 1924
Houston May UrgeNewAs.
sessment, Applicable to
Incomes Over $4,000

W WASHlNGTON, Nov. Z (By The AS
sociated Press).-The nation will face
continuation of the annual tax bill
Of ,o00,o00,000 for a period of at
least three years, if Congress adopts
recommendations drafted by Treasury
officials, and which, it was understood
tonight have been laid before Secre-
tary Houston for approval.
Mr. Houston, it was said. probably
will include such recommendations in
the form Of an analysis of the govern
mert's financial condition in his forth
coming annual report to Congress. The
analysis will show, and accompanying
recommendations will suggest. it was
said, that three-year program for tax
revision is required in order to meet
maturing government obligations and
cover current Federal expenses.
Approximately $4,000 900 900 in Vic
tory notes, War Savings securities and
Treasury certificates Of Indebtedness
will be due for payment within the
next three years, Treasury figures
show. Retention of the present aggre
gate level OF taxes or maintenance of
the annual revenue Of the government
at about $4,000 900 900 then is held to
be unavoidable on the face OF average
expenditures estimated for the neriod
Would Abolish Excess Profit Taxes
Recommendations to be made by Mr..
Houston, it is understood, will pronose
apollshment OF the excess profits taxes
IN their entirety and the substitution
therefor Of a graduated income tax of
substantially deeper cut than under
present revenue laws. 1t was believed
the new income taxes would apply onlv
~ incomes above $4,000 annually and
1hat PROVISION would be made for n
graduated increase even On the addi-
tonal tax as the amount of income
grows larger. N''e
Inc Secretary is expected to adcia.
congress that the strictest economv IN
rederal appropriations is necessary II
sne program outlined on the basis 81 a
34,VoV'VVo,ooO tax bill is to be accom-
phsheo. lie has said that there was no
way TO estimate with any degreee Of
accuracy what even the present lava
would yield in revenue because Of +hn
rapidly changing conditions in business
as result Of after-the-war transition
and readjustment. MIR. Houston's vi.,r
OF this was said to be that tax receipts
would be materially lower later in Tho
present fiscal year. which ends June 20.
1921. and that therefore the govern
ment income under the present revenue
laws could not be taken as basi, for
calculating future receipts.
10 Insist on Four Billions.
This attitude, which is held also by
nearly all Treasury officials having to
do with tax collections, forccas+s task
OF great difficulty for the trainers Of
the new revenue act. The Treasury
VIII INSIST strongly on legislation which
would produce four billions for the
next year, but the ways and means Of
getting H. viii be left to Congress, OK
cept for the suggestions contained in the
Ireasury's report. In fact, the tax law
trainers will be informed that there is
no alternative to voting a revenue act
that viii produce the required amount.
The program for handling the ma
tionaE debt and its payment is obliga-
tory can be accomplished only through
annual revenue Of S4.0OO.OOO. 900, Treas
ury officials hold. With the Victory
notes maturing In 1928 and the war
saving securities falling due in the in
terim and until 1924, it was declared
a possibility that the $4,000, 900 900 tax
levy might have to be continued even
until the latter date.
Treasury views are expected to clash
with those Of the Republican majority
IN Congress on questions Of ways and
means of obtaining the needed reve-
nues. But with the changing Adminis-
tration, it was understood. the present
regime at the Treasury would rely
suggest and offer. little argument in
support Of their stand FOR repeal Of
the excess profits taxes and replace
ment OF the amounts 50 gained by
higher income taxes.
Tariff to Enter Discussions
IT was expected that tariff questions
would be brought into the discussion,
and that those in charge Of taX legis-
lation might seek to offset some of the
deficits by higher duties and customs,
acceding to the Treasury's argument
for wiping the profits Of tax provisions
off the statute books.
The Treasury is committed to con-
tinuation Of the sale of savings securi-
ties. Although amounts thus obtained
are small they help materially in re-
ievlng current burdens of demand on
the Treasury by spreading out the
maturing dates, according to officials.
Continued on next sass).
D01s T.HJ ID