Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-09
REVISION OF TAXATION
LAWS Is URGED
CONTINUED from Page one.)

plus. income which Is being wasted,
not a conglomerate multiplication
of petty taxes upon every article Of
luxurious or unnecessary consump-
ton which can neither be clearly
defined, cheaply collected nor ad-
ministeled without widespread eva
sion"
Repeal Levy on Drinks.
The repeal of the tax on soda
fountain and other beverages Is
| asked, the secretary says, because
the collection Of the tax, the aggre-
gate Of which is small, has present
ed an administrative problem Of
magnitude. Added to that, Mr.
Houston says, there has been con 81
slant and widespread evasion of
such taxes
The excess profits tax, Mr.. Haus-
ton declares, has not fulfilled the
theoretical grounds upon which it
was enacted, and has been found
to be wrong both in theory and in
political philosophy. He says il dis
eliminated against the conserva
lively financed corporation while
aiding materially the firms whose
capitalization ii exaggerated. He
urges that it be replaced by some
form of a corporation profits tax
mot only on the grounds of the
governments revenue needs, but
upon grounds of equality and jus
tiCe." The corporation profits, the
secretary continues, should not be
allowed to escape with II tax of 10
per cent while other taxpayers are
subjected to taxes on their incomes
ranging as high as 10 per cent.
Mr. Houston again urges the ne
cessity for rigid economy in gov
eminent expenditures, asserting
that only by conserving finances
carefully can the expenditures be
kept within the $4,000, 600 annually
which he suggests should be the
basis for a revenue program. He
Is hopeful. however, that with the
"heavy burdens placed by the
Transportation Act" out of the
way, there will he a substantial eX-
cess shown by government receipts
over government expenditures.
An analysis of the government
expenditures for the last fiscal
year developes the fact that almost
one-fifth of the Sc, 400, 900 600 paid
out was spent in connection with
federal control and the guaranty
of earnings for the railroads. Only
one department of the government
the war epartment-spen more
than was used in connection with
the carriers. The war depart
ments total, the record shows, was
S1.G11, 100000 against $1,03EQe0,-
coo for the railroads.
Lessons of the world war, nv.
Houston says, have shown the need
for the transfer of some Of The
treasury activities to other depart
ments. Five bureaus-war, risk
insurance, prohibition. public
health service, supervising aren't
tect and the general supply com
mittee--are in no way related to
the fiscal operation of the govern
ment, he says, and urges that they
be placed under other jurisdiction.
The request, he adds, is unusual,
for few if any other executive de-
par mont heads have been willing
to see their departments dismem-
bered, His own request, he says
demands the more attention for
this reason
In connection with this suggest
ed reorganization. the secretary
asks that the position OF under sec
retary Of the treasury be created
at a salary Of $4,000. He recom-
mends also an increase in the sal
aries o. the assistant secretaries
from $1,000 to $500,
Mr.. Houston strongly urges the
establishment of a federal budget
system, declaring that unless such
a plan is adopted the financial bur-
dens of the people will be greatly
increased through "the piecemeal-
methods of handling appropria
lions without regard for or relation
to income of the government"
Reviewing the loans to foreign
eovernments, Mr.. Houston says the
American government advanced in
cash between April "a, 1917, and
November 10, 1920, total of So
5S0,S23,677 OF this amount ap-
proYlmately $16S,000, 600 has been
advanced since November 5, 1919,
under credits previously establish
ed to five foreign governments, OF
this, France received S110,00O,OO0;
Italy. $20,418,000; Greece, $15,-
100000; Belgium, $40, 900, and
Czecho- slovakia. sS.566,000,
The treasury has yet reached no
determination as to the form which
the obligations Of the foreign gov
ornments Will take, Mr.. HoustonI
says but he recommends they be !
allowed to extend until June, 1s47.
at which they must be paid under
existing law. The foreign govern
ments, the secretary says, should |
be given every advantage to pre-
pare for the payment by whatever |
arrangements they deem hest suit
ed to their individual requirements,
Legislative Program,