The Hartford republican. (Hartford, Ky.) 18??-1926, 1920-12-03
TAX LAWS TO REMAIN
UNTIL AFTER MARCH
Republicans Make Study Of Subject
Framing Program For Spe-
cial Session.

1
ion of Senator Penrosa, Chairman of
the Finance Committee, communica-
ted to Senatorial colleagues here and
to influential members of the Ways
and Means Committee, no attempt
should be made to repeal the excess
profit tax or amend the revenue laws
until the special session of Congress,
which President-elect Harding has
announced that he will call soon af-
ter March 4.
Senator Penrose said that in his
opinion anything that might be done
by the Republican Congress along
these lines would probably be vetoed
by President Wilson, and, therefore,
1t would be a waste of time for the
Republicans to attempt to carry into
effect party policies during the final
months of the Wilson Administra-
ton.
ut may be wise not only to repeal
the excess profits tax, but to simplify
tax forms for the calendar year
1920" said Senator Penrose, but !
do not believe that the consensus of
opinion in Congress would favor I'M
dertaking the repeal of any taxation
schedules until the Republicans enter
into full control of the Government.
myself favor simplification of the
tax forms so that the taxpayer can
know what he has to report. / hope
that we may do this before the tax
payers are required to make the 1920
report"
Senator Penrose further indicated
that no advantage could be gained
by repeating the excess profits tax
at the coming session, as Congress
undoubtedly would not favor repeal
ing the tax for the calendar year 1920
and there was sufficient time to re-
peal it at the special session, when
other features of the revenue law
would be considered and general re-
vision might be undertaken.
There is such a demand from bu-
siness men for repeal of the excess
profits tax, supplemented by the re-
commendations of Treasury officials, |
that there is reason to believe that |
Congress will not delay action until |
the whole subject of tax revision can
be undertaken. 1t is the opinion of |
those concerned with taxation mat
ters that this tax will be repealed !
early in the special session so that the
tax need not be collected for 1921. |
This must be done in the summer of |
1921. or according to Secretary Hous-
ton. it will be necessary TO collect the
tax for that calendar year,
What is puzzliug the authorities is
how to find a substitute for this tax
There is no argument against its re-
peal. In the Ways and Means Com
mittee last session, r. c. Leffingwell, |
then Assistant Secretary of the Treas
ury. suggested that the income tax
might be increased 10 provide reve-
nues coming from excess profits. This
view was opposed by the committee,
which was nearly ready to accept a
tax on sales and real estate trans
fers. Many object to a sales tax.
Another suggestion is to repeal the
profits tax without trying to supply
another source of revenue to take its
place In such a case the expendl-
lures of Government must be redue-
ed to a minimum. II this is done,
it is argued, there viii be sufficient
revenue to meet ordinary expenses of
Government, hun not to redeem the
Trasury certificates and Victory notes
in 1923, amounting in all to about
SIS, OF zoe, 900.
Some financial experts hold that
these obligations should not be re-
deemed. but should be refunded into
long-term bonds and cancelled in fiji
teen years. when the condition of tho
will be such as to carry I
oet the transaction without putting
such burden on present-day taxpay-
ers
Different schools of finanoers will
come into conflict when
he subject of tax revision comes up
n Congress. Underlying the differ
snces, however, is the general agree
nent that the excess profits tax must
% repealed. The struggle will come L
yer whether substitute tax is neces-
AIRY or whether the present situa-
ion can be taken care Of by ex-
ending the period OF Indebtedness o
Maturity. o