The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1920-12-02
TAX LAWS TO REMAIN
UNTIL AFTER MARCH 4
Meantime Republicans Make study Of
subject and Form Program for Spec
ial session.


By Smell Smith.
washington. Nov. SO.-In the opinion
Of senator Penrose. Chairman OF the
Finance Committee, communicated to
Senatorial colleagues here and to ipfiu-
entail members OF the Ways and Means
Committee no attempt should be made
20 repeal the excess profit tax or amend
the revenue laws until the special ses-
sion Of Congress, which President-elect
Harding has announced that he will
call soon after March 4,
Senator Penrose said that in his
opinion anything that might be done by
the Republican Congress along these
lines would probably be vetoed by
President Wilson, and, therefore 1t
would be a waste Of time for the Rep
uhlicans TO attempt to carry into effect
party policies during the final months
Of the Wilson Administration.
1T may be wise not only to repeal
the excess profits tax, but to simplify
tax forms for the calendar year 1890.
said Senator Penrose, but l do not
believe that the consensus Of opinion
in Congress would favor undertaking
the repeal of any taxation schedules
until the Republicans enter into full
control Of the Government l myself
favor slmplifcation Of the tax forms so
that the taxpayer can know what he
has to report hope that we may do
this before the taxpayers are required
TO make the 1920 report"
Senator Penrose further indicated
that no advantage could be gained by
repealing the excess profits tax at the
coming session, as Congress undoubt-
edlv would not favor repeating the tax
for the calendar year 1920. and there
was sufficient time to repeal it at the
special session, when other features OF
the revenue law would be considered
and general revision might be under
taken.
There is such a demand from ousi-
ness men for repeal of the excess pro-
fits tax. supplemented by the recon-
mendations Of Treasury officials. that
there is reason to believe that Con-
gress will not delay action until the
whole subject of taxation can be under
taken 1t is the opinion of those con-
cerned with taxation matters that THIS
tax will be repealed early in the sum-
mer of 1921, or. according to Secretar,
Houston, it will be necessary to collect
| the tax for that calendar year.
What is puzzling the authorities is
how to find a substitute for this tax
There is no argument against It's re-
neal In the WAYS and Means Commit
tee last session, R. c. Leffingwell, ther
Assistant Secretary Of the Treasury
suggested that the income tax might
be increased to provide revenues com
ing from excess profits This view wa:
| opposed by the committee, which was
| nearly ready to accept tax on sales
and real estate transfers, Many objec
to a sales tax.
Another suggestion Is to repeal TIL
profits tax without trying to suppl,
another source of revenue to take IL
place. In such a case the expenditures
Of Government must be reduced to
minimum. If this is done, 1t is argued
there will be sufficient revenue to NEE
ordinary expenses Of Government bu
not to redeem the Treasury certihcate
and Victory notes in 1928, amounting
in all to about $4,000. 100000.
Some financial experts hold tina
these obligations should not be redeem
ed. but should be refunded into long
term bonds and cancelled in hftee'
wears. when the condition of the Gov
ernment will be such as to carry gu
the transaction without putting such
burden on present-day taxpayers.
Different schools of fnanciers Wi
undoubtedly come into conflict whe
the subject of tax revision comes up /
Congress, Underlying the differences
however, is the general agreement tha
the excess profits tax must be repealed
The struggle will come over whethe
a substitute tax Is necessary or wheth
er the present situation can be take
care Of by extending the period OF In
dahetedness maturity