Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-12-08
HOUSTON MAKES TAX
CHANGE PROPOSALS
IN ANNUAL REPORT
Revised Program Strikes at Rich Who Escape
Liability Under Cloak of Stock
DtUidends.'
SEEKS NOT TO REDUCE REVENUES

Kenyon said he proposed to urge the
passage Of the bill in a lengthy speech.
but opposition to it on the part of sew
eral Influential leaders may preclude an
carly vote on it.
1t is understood Senator Lodge OF
Massachusetts and Senator Smoot Of Utah
are two Republican leaders who believe
the retailer and not the wholesaler, is
the one in most need Of regulation.
Certain recommendations made by the
President in his message are certain to
be ignored by the Republican majority
In control of Congress, Republican and
Democratic Senators declared.
They say the Presidents suggestion for
! an immediate revision of the countrys
taxation system is impracticable although
hearings will be begun after the Christ
mas holidays by both the Senate Finance
md House Ways and Means Committees
Preparatory for a reduction Of taxes in
accordance of Republican program in
revising the revenue act
The licensing Of corporations engaged
in interstate commerce; a loan to Ar
menia, and the granting of independence
TO the Philippines, are other proposals
OF the President, which, 1t is believed,
viii not be acted upon favorably.
The coalition between Democratic and
Republican agricultural members may re-
suit in the re-esta blishment of the War
Finance Corporation, despite the opposi-
tion to this by certain Republican lead
ers.
Minority leaders in Congress were
asked by Secretary Of the Treasury Hous-
ton to press for action on the soldiers
bonus legislation, prior TO enactment of
new tax legislation. The suggestion made
by the Secretary ha
question must be definitely settled before
] the outlines of new tax laws can be ac-
curately determined
Renewing his opposition to the soldier
bonus. proposal which would involve an
estimated cash expenditure Of $3.50, ,000.-
600. Mr.. Houston said such expenditure
would have TO be made by the Govern
ment during the period in which the
treasury will be most severely tried by
the burden Of meeting heavy maturing
obligations
1t would entirely dominate the pro-
gram Of tax legislation during the next
TWO years or more It would increase
the present tax burden, delay the tighten
ing OF that burden and dismay taxpayers
with its promise or threat of future drafts
Of Ike character upon the public purse"
the secretary commented in his report
| to Congress.
The need Of the hour, Houston said, is
the repeal OF the excess profits taxes,
readJustment OF surtaxes- and the adop-
uon OF some form Of sales or con
sumption" taxes on certain luxurfes.
Proposed revision, he urged, must be
made to keep the level of Government
revenues up to at least $4,000, ,GO00OO
through the fiscal year 1923, and possibly
longer period.
CALLS REDUCTION
AN IMPOssIBILITY.
The secretary termed reduction OF
taxes as an utter impossibility, not
compatible with national security He
intimated that present scales of taxes
may not even be sufficient to meet the
demands Of the future
ANY scheme which would WELD for
several years to come less than $1,000
100000 year would be incompatible
with safety and sound finance" said the
secretary.
And the country should face the fact
that present taxes, even. may not in the
future be relied on to yield the needed
revenue"
Due regard for the protection Of the
treasury imposes on Congress the duty
to seek out new sources OF tax revenue
for the next two years. Secretary Hous-
AoA Sallt anu 10 replace losses W0lcn may
come from the revisIons recommended.
he urges that part of the burden must
be borne by "waSteful, non-taxpaying
classes through luxury taxes. He op-
poses general sales taxes on necessities.
TIRED SHOULDERS
MAY BE FAVORED.
Shifting OF about $1,000 100000 OF the
tax burdens from the shoulders of thoss
least able to bear it is contemplated as
the most beneficial to the average con-
sumer. Although the aggregate tax load
viii be as high, its reapportionment will
fall less heavily on the wage-earning
public in the secretary's opinion.
The main tax proposals outlined and
the remedies suggested in detail by Sec,
retary Houston 10 the Congress were
1. Excess profits tax should be replaced
in large part by some form of corpora
tion profits tax. This is based on Gov
ernment needs and on grounds of equal
ity
So long a taxpayers, other than cor
porations, are subject TO a progressive
income tax rising now to more than 70
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