New-York tribune., 1920-12-09
Senate and House Com.
mittees Start Hearings
Soon on Revision Bill
for Extra Session Action
Houston Asks More
OF Small Incomes
Also Urges Higher Levy
on Certain Luxuries and
Repeal of Excess Profits

WASHINGTON, Dec. s.-First steps
toward revision OF tax and tariff laws
were taken today by Republican mem.
hcrs Of Congress- when Chairman Ford
ney, OF the House Ways and Means
Committee, announced that his com
nlttee would begin hearings within a
lew days on The question Of proposed
tax law changes. These hearings viii
continue until January G, when pro
posed tariff legislation will be taken
up. Present laws Will not be changed
until after President elect Harding's
inauguration.
Immediate revision Of the nations
tax laws on the basis Of an annual lew
OF four billions Of dollars for period
Of four years and including an in
crease Of per cent in the taxes on in
comes up TO $1,000 was urged by Secrc-
tary Houston in his annual report sent
to-day to Congress-
Repeal Of the excess profits taxes.
elimination Of certain Of the so-callcd
luxury taxes, including the levy on soda
fountain and similar beverages. and a
readJustmcnt of the rates in the HIGHER
groups OF income taxes was proposed
by the Treasury chief.
Senate Committee to Act
Almost Simultaneously with Chairman
Fordney's announcement of the pro-
gram OF the Ways and Means Com
mlttee senator McCumber, Of North
Dakota. acting chairman Of the Senate
finance Committee, issued call for ?
meeting OF that committee for to-mor-
row, when plans will be made for hear
'ngs similar to those contcrlplated hv
the House committee.
The Senate and House committees
alike nope TO conclude their HEARINGS
by the end of the present session. Tie
House committee, Chairman Fordney
SAID expects to be able to begin the
work OF drafting the new tax and tar
III measures as soon as the extra sey-
sion is convened The Senate com
m mttee's hearings arc expected to be
hrleier than those planned bv the
House committee
Want Houston to Explain Views
Chairman Fordnev's announcement
followed q conference Of the majority
members II the committee. He said
nat as soon as the committee had had
time 30 study the tax rccnmmenda-
tions contained in the annual rel,ort
Of Secretary Houston he would invite
Mr.. Houston so appear before the com
mittee and explain his views more
fully. The Treasury Secretary Will be
asked 10 designate an official to repre-
sent him at the committees sessions.
The committee's program, the chair
man said, will be announced from dav
to day as thc hearings procccd.
Chairman Fordney said to-day that
he had in mind a definite plan for
slmphficatioN Of the tax on corpora
ton incomes. One Of his proposals is
fat tax on the incomes Of all cor
porations, having 10 qualification or
other modifying provisions" Mr..
Fordney also said it was his desire
that the income tax laws be made 80
simple that corporation viii not have
to hire an expert or a lawyer to figure
how much it owes the government
Estimates Ridiculously High
The Ways and Means chairman de-
clared that study Of Secretary
Houston's report had shown him that
the "estimates for governmental ox-
pc ditures are ridiculously high"
Il can 20 down the list of estimates
OF the Secretary and chop Out approx
mately $3.50 100000 as unnecessary,'
Mr.. Fordncy said. "Just Tor example.
he wants $lsl 100000 for the War
Risk Insurance Bureau. think th4t
IS 100000, 900 or more too high
with the proposed consolidation OF
the various soldiers rclict agencies
into one bureau, We can save 100000
600 and eliminate 35 900 clerks in
Washington. The secretary wants
$4,000, 900 for rivers and harbors I'M
provement. do not think Congress
VIII grant any such sum this year"
Secretary Houston. in proposing
changes in the tax laws, recommend
Continued naos cieht