Arizona republican., 1920-11-08
ANNUAL TAX BILL IF NATION TO BE KEPT UP UNDER HOUSTON $ PLAN

S Treasury Officials Submit n Analysis of Governments ; Financial ConditionShow- los ing Program for Tax Re- z alI vision.
 nte WASHINGTON, Nov. 7-The na- irkion will face a continuation of the aSannual tax bill of four billion dollars ~ for a period of at least three years if congress adopts recommendations by treasury officials and which tonight have been laid before Secretary Hous- ton for approval
 MT. Houston, it was said, probably will include such recommendations in the form of an analysis of the gov ernment's financial condition in his forthcoming annual report to congress. The analysis will show, and accom- panying recommendations will suggest, 1t was said. that a three year pro- gram for tax revision is required in order to meet maturing government obligations and cover current federal expenses and that the approximately eight billion dollars in victory notes, war savings securities and treasury certificates of indebtedness will be due
 
 years. treasury figures show.
 Retention of the present aggregate level of taxes or maintenance of the annual revenue of the government at about four billion dollars then is held to be unavoidable on the face of aver age expenditures estimated for the / period.
 Recommendations to be made by MT. Houston. it is understood will propose a hnl a Inf af fa fin their entirety and the substitution therefor of a graduated income tax of a substantially deeper cut than under present revenue laws. 1t was believed the new income taxes would apply only to incomes above $5,000 annually and that provision would be made for Q graduated increase even on the additional tax as the amount of income grows larger.
 The secretary is expected to advise congress that the strictest economy in federal appropriations is necessary if the program outlined on, the basis of a four billion dollar tax bill is to be accomplished. He has said that there was no way to estimate with any de- gree of accuracy what even the present laws would yield in revenue because of the rapidly changing conditions in business as result of after-the-war transition and readjustment. MT. Houston's view on this was said to be that tax receipts would be materially lower later in the present fiscal year which ends June 30. 1921 and that therefore the government income un- der the present revenue laws could not be taken as a basis for calculating future receipts.
 This attitude, which is held also by practically all treasury officials having to do with tax collections forecasts a task of great difficulty for the framers of the new revenue act The treasury will insist strongly on legislation which would produce four billions foI the next year but the ways and means of getting it will be left to congress except for the suggestions contained fl the treasury report. In fact the ta1 framers will be informed that there i; no alternative to voting Q revenue ac that will produce the required amount The program for handling the ma tional debt can be accomplished onl. through annual revenue of four bill 1 lions, treasury officials hold. With tn V Victory notes maturing in 1923 am the war savings securities falling du in the interim and until 1924, it wa declared a possibility that the four bil lion dollars tax level might have to b Rcontinued even until the latter date.
 Treasury views are expected to clasl with those of tho Republican majorit in congress on questions of ways an means of obtaining the needed reve nues. But with the changing admin istration it was understood the presen regime at the treasury would merel suggest and offer little argument i support of their stand for repeal of tn excess profits taxes and replacemer of the amounts so gained by higher in come taxes.
 If was expected that the tariff ques tions would be brought into the discus sion and that those in charge of ta legislation might seek to offset son Of the deficit by highef duties and GUS toms. acceding to the treasury's agree ment for wiping the profits tax pro visions off the statute books.
 The treasury is committed to cor tfnuation of the sale of savings st cririties Although accounts thus ol tained are small. they help material in relieving current burdens of demaI on the treasury. This feature of Il financial status of the government VI also have to be considered in the ne. fax laws. since officials believe it o fers one road for the distribution small amounts of the tax burden ov several additional years. It was sa to be only a means of deterring pa .Inent, but after the victory notes nd been retired securities on which pa, rnents have thus been deferred can better handled.
 Meanwhile, the treasury will car on it's announced program of shor term financing, issuing certificates indebtedness to meet current requir ments in anticipation of quarterly pa so,t of income and profits taxes. r-os said that the certificate issu nrobably would continue upon a | rronfIlv basis until congress indicat rvbat it will do in the way of tax le islation.