The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-12-08
Secretary of Treasury Wants In
come Tax Increased.
Even Wants 2 Cents Per Gallon
ON Gasoline.
SCORES REFUNDING WAR BONDS
He Wants War Debts All Paid
OFF at Once.
Says Cost of Hostilities to u. s.
Was $3.50 100000.

Washington, Dec. S.-Secretary of
the Treasury Houston today asked con-
gress TO boost the federal income tax
rate ? per cent on incomes under
$4,000. Houston at the same time
asked that:
surtaxes be lowed ON the larger in
comes.
o Corporations made to pay a flat tax Of
70 per cent on undivided profits.
Big increases be made In existing con-
sumers taxes on tobacco, cigars cfgarets
candy chewing gum, and the like.
TasoLtne oe taxed cents per gallon and
| AUTOMOBILES 90 cents per horse power.
Bring in Two Billion.
Houston's proposals were contained
in his annual report presented to
ISpeaker Gillett of the house at noon
land are intended to. net the govern
ment approximately $4,000, 100000 a
year That part of the report dealing
with taxation was intended as a guide !.
to congress in passing new revenue
laws to take the place OF those en-
Iacted during the war period and which
now are falling to produce sufficient
lrevenue for the government, according
Ito the secretary.
At least s12. 900, ,000, 900 must be col
lected during the next three years.
Houston declared, if the government is
- pay ils oroindry expenses and meet
l$7,5OO. 200. 600 worth of floating debts
land victory notes before May. 1923.
Replace Excess Profits Tax.
Concerning the excess profits tax.
repeal of which business men are de-
manding, Houston wrote:
THE excess profits tax, however,
must be replaced, not merely re-
pealed, and I believe it should be re-
placed in large part by some form Of
corporation profits tax
;, The 20 per cent tax on undivided
profits of corporations is Houston's
proposal for replacement. The scor-
porations now are escaping with a
single tax of 10 per cent, he said.
while individuals and partners are
Obliged to pay surtaxes ranging up 70
65 and 70 per cent on incomes over
SIS. 600
The lower surtax rates on incomes
slightly more than $4,000 "A year
would be increased by Houston.
Wants General Sales Tax.
The secretary also recommended
abolition of the present consumers
tax on ice cream and similar luxuries
and urged against radical use of
the general sales tax.
| Houston presented this summary to
show what his plan of tax revision
would yield the government in addi-
tion to the money now collected:
Normal income tax. $150,94o,0OO, thru In
and II per cent
. Readtusted surtaxes; $230OO0O0O
Corporation income tax, $465 900 600 by
increasing present rate by per cent
Corporation undistributed profits $780,
100000, 20 per cent new tax.
Federal auto license 500, 900, 900, 80 cents
per horse power. new tax
Gasoline, $9oo0oooo, 2 cents per gallon,
Admission to theaters, s7o.cOoooO, 10 per
cent increase
Tobacco and snuff, $sOooooO increase 8
| cents per pound.
cigarets: cigars, $75.oOO.OOo, % cents to
81 per 1000 additional.
Auto and accessories, 500 OOOOOO q par
cent additional.
Musical Instruments. s13.O0O,oO0. per
additional
Chewing gum, s2,OooOoO, Z per cent addi-
tional.
Candy, S2Oooqoo0 per cent additional.
$45, 600 900.
Stamp taxes, s134, 600. 900. 100 per cent ad-
ditional.
Says Budget Imperative.
Houston scored practically all of a
multitude of proposals advanced for
the refunding of liberty bonds and
victory notes into longer term securi-
ties at higher rates of interest He
also condemned the continual agita-
ton for the government. to take sc-
tion to stabilize quotations of liberty
bonds and victory notes.
Houston characterized as "impera-
tive the necessity OF budget system
because the national finances must
| be handled on a business basis"
| He condemned the proposal that the
United States should donate to foreign
governments nearly $4,000, 000,0 900 in
war loans
| He warned against any attempt to
revive the proposal to pay a bonus of
81, 900. 900. 900 to ex-service men.
War Cost s33, ass, ,OOO, 600.
The cost of the war Houston placed
at S33, 3,455, ,000,0 5000. taking into con-
sideration all expenditures resulting
therefrom between April and June
80. 1920.
| Federal farm land banks loaned
s61. 961,9S0 to 1869 persons during
t1919, according to the report
The public health service needs
s35. 100000 to acquire and maintain
hospitals to care for disabled war YET
Grams, Houston said.