Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1920-12-15
ASKS IMMEDIATE
TAX LAW REVISION
Secretary of Treasury HouSton'S
Report to Congress.
SEEKS s4,Ooo,oOO,ooo LEVY
Urges Increase Of TWO Per Cent on
$1,000, and Four on $4,000 In
comes-Wants Two-cent
Gasoline Tax.

Washington, Dec. 9.-Immediate re-
vision OF the nations tax laws on the
basis of On annual levy Of S4,OOO.OcO,-
600 for a period of four years, and In
Guiding an increase of . per cent in
the taxes on incomes up TO $1,000, is
urged by Secretary Houston In his
annual report sent 10 congress.
Repeal of the excess profits taxes,
elimination of certain of the sO-called
luxury taxes, including the levy ON
soda fountain and similar beverages,
and a readjuStment of the rates in
the higher groups of income taxes, is
proposed by the treasury chief. To
meet the losses brought about by these
changes, Mr.. Houston recommends re-
viSed and new taxes To yield about
S2,OOOOOO.OOO, as follows:
Corporation Profit Tax.
A tax OF 20 per cent on corpora
ton profits, distributed or undistrib-
uted in addition to application of a
higher surtax rate to yield S690.OO0.-
OOU.
An additional tax OF 6 per cent on
corporation incomes TO yield $780,
100000.
REIMBURSEMENT of surtaX rates on in
comes to yield an additional $780,
OOO.OO
Adjustment Of the $1,000 exemp-
ton allowed corporations on incomes
to yield S5S,OOO,OO0
An increase from the present 4 per
cent TO 6 per cent in the tax on in
comes of 5000 or less and from s
per cent 10 u per cent in the tax on
incomes between $1,000 and $4,000.
the whole estimated TO yield Sl5O94O,-
600 annually.
T~o-cent Gasoline Tax.
A tax OF cents a gallon on gaSo-
line for mOtorcars and all other pur-
poses, to yield $9O,OOO,0O0.
A federal license tax Of 30 cents per
horsepower on the use of mOtOrcars
20 yield SlOO,OOOOOO
An additional sales tax on automO-
siles (other than trucks and wagOns)
and motorcycles and motorcar aces
series. 10 yield SlOOOOO.OO0.
A 10 per cent additional tax on the
itrlcal admissions to yield 100000
An additional tax of - cents per
thousand on cigars to yield S5.O00,OOO.
An additional tax of 6 cents per
pound on tobacco and SNUFF To yield
SS.OOO,OOO.
Additional Candy Tax.
An additional tax of per cent on
candy 10 yield S20,OOO.O00
An additional tax of Z per cent On
chewing gum to yield S2.OOO,OOO.
An additional tax Of Z per cent on
toilet soap and tOilet-soap powders 10
yield S4.0OO,OO0.
A 10 per cent tax on the sale by
manufacturers, producers or import
ers of perfumes. cosmetics and medi-
cinal articles, in lieu of the present
taY ~, rkS C5Caumer, 10 yield S10O0G.-
0OS.
An additional > per cent tax on
Icwelry and precious metals To yield
s25,OO0.OOO.
An additional tax OF per cent On
UiuSlfNi llNAAuiiltitN ~ 9Afih FA1shNNs-
600.
An additional tax OF : per cent on
motion-picture films to yield S4.OOO.O0O.
Division Of Incomes.
In the readjustment OF surtaxes.
Mr.. Houston proposes the division Of
incomes into saved or reinvestCd
and spent" On the former class he
would limit the highest tax To 20 per
cent while the income spent would
be subjected To a tax ranging rs high
aS 30 per cent Under the plan pro-
posed by the secretary. incomes he
tween 5000 and 5000 would he
taxed per cent on the part saved
and the same on the part spent. The
same ratio with n graduated increase
would apply 10 increases mp to $780,
600. where the maximum Of 20 per
cent ON saved income Is reached.
From $4,000 20 $4,000. the rates
would be 20 per cent on saved and
~ per cent on spent; $4,000 TO S10.-
600. 20 per cent and 30 per cent
$4,000 10 $4,000. 20 per cent and
- per cent; $4,000 TO 100000. 20
per cent and 10 per cent. and over
100000. 20 per cent and 30 per cent
~. . tcto1 ~ IN nor cent