Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-10
TO IGNORE
KITCHENS ATTACK
Secretary Insists He Has.
Recommended Reduction,
Not Increase, in Taxation.
BY DAVID LAWRENCE.

Secretary Houston has decided to
ignore the attack made upon him by
Representative Claude Kitchin, demo-
graf. of North Carolina. who thinks
the tax plans announced by the Treas
ury Department are too easy on the
big corporations.
The Secretary of the Treasury, who
is not a politician and cares much
less about party politics than any
man in the government, is in the
same position as is the average neu-
trail who used to be called pro-Ger-
man by the British and pro-Britfsh
by the Germans. So the most that
can be gotten out Of the Treasury De-
partment in reply to the agitation
about the proposed tax revision is a
suggestion that the report be care
fully read.
Instead of proposing an increase in
recommended a reduction in the total
amount that the American people
should pay. For instance, the people
paid an aggregate of six billions the
year before last and something over
hYe billions last year. Now they are
asked to. pay in the neighborhood of
tour billions
The Secretary of the Treasury pro-
ceeded on the theory that on account
Of the slump in business conditions
there wouldn't be enough money
valuable for the government through
the excess profits taxes. But he didn't
suggest that the excess profits taxes
DC n rpeaIed and nothing put in their
place.
= Mr. Houston proposes that the sub
stitute taxes shall place uniform
Burden .-on all classes of business,
namely. that corporations alone shall
not be taxed, but that partnerships,
sole proprietors and other concerns
that are not legally incorporated shall
participate in the tax program, SO
that the amount taken from business
as whole shall be approximately the
same as before. :.
= AS for the consumption tax, Mr..
Houston points out that we already
have taxes on wearing apparel, soft
everyday life. His recommendations
arE that some of these be abolished
and certain others taxed more.
Existing Laws Insufficient.
The point is that il Congress ac-
cepts the proposed budget of four
billions of dollars the painful fact is
that existing tax laws may not be
sufficient, in view of business condis
tons, to yield that sum. even though
ed five and six billions of dollars in
two different years. So Mr.. Houston
felt it to be his duty to list all the
various ways by which revenue could
be raised. The fact that complaint
has come from some, of the interests
which would be affected by some of
these suggestions is the inevitable re-
suit of mentioning them. Nobody
wants to have an increase in taxes,
and, of course. members of Congress
will be pressed by local interests to
protest against any taxes that put a
burden on the influential business
men in their respective communities.
So il the tax question is viewed
through local eyes. the Treasury De-
partment Will be under constant. bonn
Dardment not only under this admin
stration. but the next one as we'll
national eyes the total amount paid
BY the American people will be seen
AS less than any previous year.
Revolving Funds.
Is four billions, however, the mini
mum amount on which the govern
nent can get along? Republican lead
srs say they can knock a billion dol.
lars out of the estimates submitted by
the Treasury for the coming year. But
the Treasury calls attention, as did
President Wilson, to the congression-
y
If revolving funds. More than a bill
ion dollars was spent last year in
that way after the estimates had been
pared down by a billion dollars
Probably the adoption of a budget
system and the making Of all APP
rropriations directly will cure this
fault in government finance, but I'M
til it comes Congress may be in the
position Of taking a billion dollars
off a list of paper estimates and of
finding the same billion eventually on
a list of expenditures
To get relief from taxation it will
lie necessary not merely to reduce
the estimates, but to prevent Indirect
appropriations Moreover an analysis
Of how Secretary Houston made IN
his budget Of four billions shows that
one and one:third billions go to nav
interest on liberty bonds and other
public debt. Another billion is want !
which Includes plans for such things
as universal military training and
the maintenance of a. fair-Sized ARMY
to cost $685.. 100000.
The railroads will cost in the neigh
borhood Of billion dollars. and it
used to cost the government just a 4
billion dollars to run in pre-war days,
At that the government viii face q def
cit on outstanding debts. Pruning
department estimates viii
help some. but 1t is not believed the
general total that must be raised by
taxation will be sufficiently reduced
to be felt by the public at large. NO
matter whether Mr.. Houston's plans
or those .of the. next administrator
are adopted. For, in a nutshell. Soma
may fare better and Others
total tax bill will be abont
the same as Mr.. Houston suggests
simply because that is the amount the
government must have to pay its bills
Copyright. 1870.