New-York tribune., 1920-12-28

>ohiPiiea0eu Dy the ADOPTION OF turn
over or general sales tax, which would
require a huge additional administra-
tive force If administered properly, and
would result in widespread evasion if
not thoroughly administered.
-. The excess profits and other taxes
which, in my opinion, should be re-
laced would yield in the future less
than $730,000,000 year In order to
meet this reduction, or deficit, | have
mentioned merely for the convenience
OF the committees of Congress which
VIII be directly responsible for tax re-
vislon-a large number of possible new
or additional taxes, including higher
income taxes and additional specific
sales taxes upon luxuries and non es-
sentials. capable Of yielding over ST.
OoO,o0000O year. Obviously all of
these taxes are not recommended. They
are mentioned as possible new sources
from which to make a selection.
70. Except for l-Swspaper misuhder-
standing it would pc unnecessary to
repeat what is SO emphatically stated
IN my recent annual report, that sound
policy demands the exercise of the
most drastic economy. Unless every
unnecessary expenditure, such as the
proposed appropriation for the pay
ment of soldiers bonus, be avoided;
unless every official, or other estimate,
or request for appropriations, be re-
duced to mlnlm /, no sound plan of
t; revision can be carried out and the
successful financial conduct of the
government durir the next three
years will be seriously imperiled."
Much of what tha Secretary said was
included in his annual report and had
been presented too, at the previous
meeting of the finance committee How
10 Io,
in concise form and sought to clear
up all isunderstandngs with rcspcct
to his views.
In presenting his recommendations,
Secretary Houston defended the GEN
eral policy of taxa ion adopted in the
war period as "progressivc taxation
based on the ability of the taxpayer to
bear the burden" He said his recon-
mendations looked to preserving this
policy and simplifying it.
Secretary Houston was followed by
Treasury Department. He took up in
detail the question of how additional
taxes might be raised and discussed
details, too, Of present taxes. He
sought to impress on the committee
the idea that only by careful study Of
business was it possible to know
what money could be raised from it
IN taxes. He illustrated this by say
ing that returns from cigarettes were
falling off, despite the fact that the
treasury had always relied on them as
stable source of revenue. He cited
the fact that in November revenues
from cigarette sales amounted to
. o,587 900, as compared with $14,3O7,-
geo for November of last year.
Auto Revenue Increases
He said the cigarette slump sur
prised him. On the other hand, in
spite of Impressions to the contrary,
the revenue from the sale of auto
mobiles and motor vehicles increased
in November and in the July October
period. Taxes on carpets and rugs
increased, so did those on near beer.
The near-beer habit is increasing. -
said DR.. Adams.
creasing," said Senator La Toilette.
1t was suggested by Dr.. Adams that
the drop in prices had stimulated re
tail sales of various articles.
Touching the subject of surtaxes
on large incomes, Dr.. Adams did not
believe they could be placed much
above 80 per cent without efforts TO
escape them by investment in tax free
securities and other methods Of eva
sion.
Discussing the difficultie. Of tax col
lection and administration. DR.. Adams
toe of the trouble in keeping expert
men in the Treasury. He pictured them
as getting. their schooling in the
Treasury, then beirg employed at much
higher salaries by large concerns.
Without mentioning the name, he
told of one s5 1000 expert who quit the
Treasury to take a salary of $4,000.
This man, he declared, had cost the
government millions in uncollected d
taxes since entering private employ
ment.
More elasticity in salaries, so tina.
certain men of srecial executive ca
pacity could be better paid and kept in
the government service, was strongly
recommended by Or. Adams
Secretary Houston interviewed at this
point to read recommendation he had
made along this line in his annual re-
port. He said some of the men in the
Treasury occupied positions which in
responsibility were equal to or greater
than those in great banks. Such men
should be paid enough so they could
get something ahead. though it would
be impossible foc the government to
pay as much as private establishments
DR.. Adams doubted the wisdom of a
stock dividends tax, but Senator Nc
Cumber thought some way ought to be
found to reach stock dividends.