The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-12-09

willing 10 sec theiI dcpartmcnts u I
,nnr,hrrcI His own request, i" says q,
mandS the more aItch''"" 'o'
son. ,,,~.s,se
In connection with this suggested re.
o,ra,,,gatiHn, the secretary asks thal
~ rnSitInn Of under secretary Ct INC
treasury be- created At 4 salary O. fi"'
Hnn lie recommends ais" an increase
IN the salaries Of the assistant Sc''E
t.rirs from $4,000 u $500.
Mr.. Houston strongly urges the eS-
enlistment If I. federal budget SiSi'in
declaring that unless such Il pan -
shouted the financial burdens 9l tme
ncople will b" greatly inct"nSTTtu - u, ~ "
~tta picccmrul methods Of handling APP
rropriat!uns without regard i"r or re-.
ft,nn.tn inrnn" of the government.
ForGign Loans. -
Reviewing the leans 10 lorc'en GOV
rrnmentS, SIR. Houston sa;S tHe - y, H.
tyycci! April a. 1917 ana EnErmh"r -,
iy"G. a total q: $?.5S0.b23,tI'. or ms
amount, approximately Sl63;ou"'"u" ~ =
been advanced since November H. ivy
u u't credits previously established I"
i've foreign governments. pf THIS
France received $llU.OhO.0OO: lthiy wv
Ji6 400. Greece, Sl5,0OO,O0O: Belgium
siO,56? 900 and Czccho-Sl"Nakia So
Sos 400 :,
termination AS to the form which the
obligations OF the foreign governments
Will take, Mr.. Houston says hut ne rec.
om,ncndS they he nllwcd 10 extend until
June 1874, at which thrymuSt be PAID
crnncnts, thc secretary says, should bc
given every advantage to prepare for
the payment by whatever ARRANGEMENTS
they deem best suited TO their indiVid-
ual requirements.
Tho present e.aXimun rate is 70 per
cent on incomes Of $l.000,hNO. but Mr.
Houston declares II has long passed
the point Of It's minimum productivity,
since il encourages the investment IN
taX-cxrmpt securities. lie says the
only effective way to tax the rich is to
adopt rates that do not force invest
mcnt in taX-cNcmpt securities.
The new ratcswhilc not laying as
high levy against the great incomes
will. tho secretary expects. produce
greater return to the government since
the wealthy class will not find 1t prof
table to invest in bonds of states. coun-
tries or MUNICIPALITIES which are taN-
exempt but pay Il lower rate oil interest
Consumption Taxes.
These possible sources OF income are
mentioned for the information or CON
grcss." MIR Houston says. While
shall not discuss them attention should
br called 10 the new and additional con-
sumption AIXrs Reasons have been
given for the belief that no valid OBJ
lection exists to the employment or Il
moderate number Of consumption lakes
properly selected. but 1t wuid. IN III!
Opiniun, hr neither wise nor c%prdient
to increase radically the volume of ocn-
s,p,ntiou toXrs The arti-
clcs included in the suggested list OF adj
ditional consumption taxes have not
been selected because their use Is par
ticulurly harmful or i'll any sense less
legitimate than those not included. Con-
sumption taxes must he judged by prac-
teal standards. What should be SuEht
are 4 few consumption taxes which tap
the surplus income which is being
wasted. not n conglomrra;c multiplica-
ton OF petty taxes upon every articIc
of luxurious or unnecessary conSump-
ton which can neither be clearly de-
fined ,Cheaply collected nor administer
ed without widespread evasion.
Repeal Beverage Tax,
The repeat Of II" tan on soda foun-
tain and other beverages ~ asked. the
secretary says. because the collection
Of the tax. the aggregate of which IS
small. has presented an administrative
problem of magnitude Added 10 that,
Mr.. Houston says. there has been con-
stant and Widespread evasion Of such
taxes
The excess profits tax. Mr.. Houston
declares, has not fulfilled the theorGtcai
grounds upon which il was enacted ana
has been found to be wrong both IN
theory and in political philosophy. lie
says il Disseminated against the CON
scrvatircly financed corporation while
aiding materially the firms whose
capitalization is exaggerated. He
urges that it be replaced Ivy some form
Of Il corporation profits tax mot only on
the grounds OF the governments
revenue needs, but upon grounds or
equality and Justice" Tho corporation
profits, the secretary continues. should
not be allowed to escape with tax OF
10 percent while other tax payers ar"
subjected to taxes on their incomes
ranging as nigh as ~ percent.
Urges Rigid Economy.
Mr.. Houston again urges the necessity
for rigid economy III government en-
pcndture, asserting thlt only by con-
serving the finances carefully can the
cxpendltures he kept within the si.nGn.-
600 900 annually which he suggests
should lie the basis for revenue pro-
gram lie is hopeful however. that
with the heavy burdens placed by the
tranSporta ton act" out of the way.
there will hc Il substantial excess shown
by government receipts over govern
ment expenditures.
An analysis Of the government eX-