The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-12-16
TAXES
|SG.0.P.PLAN
Refunding Of Victory Loan and
Economies in Expenditures
Announced as Program.

The refunding OF the Victory loan,
the funding OF a part of the present
floating debt. and the practice Of
economies in expenditures by the
Government is the Republican plan
to reduce the burden OF taxation on
the people, House Republican Leader
Mondell announced today IN a speech
to the House.
PROTECTIVE TARIFF.
The tariff will be called on TO
help out this Republican plan. and
there viii be re-enactment OF pro-
tective tariff duties. but not SO high
as TO shut OF Imports.
MondelPs plan of passing part
OF the war debt alon q to future
generations under refunding opera
lions running fifty or sixty years
differs from the Democratic Admin
istration plan as presented by Secre-
tary of the Treasury. The latter
proposed taxation to pay on the
floating debt and the Victory loans
at maturity. which would preclude
any reduction In the volumue of
taxes, although recommendation was
made for abandonment of the excess
profits tax and eadjus tment of
other taxes.
WILL REPEAL PROFITS TAX.
Repeal of the excess profits tax.
abandonment of some Of the special
taxes, and reduction Of heavy sur
taxes on incomes Is advised by Mon
dell. He says that with the practice
OF economies. the refunding of part
Of the floating debt and increased
receipts from customs duties the
Federal Treasury can be protected.
The Secretary of the Treasury"
says Mondell. docs not base his
recommendation for a continuation
OF heavy tax levies wholly, or In the
main, on anticipated increases of
appropriations. but rather not only
to meet current bills, including in
terest and sinking-fun charges. but
also to retire the present floating
Indebtedness and a considerable part
OF the Victory notes before the close
Of the fiscal year. 1928.
ION September 80 last there were
outstanding loan and tax certificates
maturing within a year, in the sum
OF $2.347. 0OO. 900; $500. 0O0. 900 warsaw
ing certificates will mature January
/. 1923: and $4,000 900 900 Of Victory
notes become due May 20. 1928 All
these tax and savings certificates.
totaling $3.147. 900, 900 and $500. 900 900
of the Victory notes, or a grand total
Of $3,647. 0Oo. 900. the Secretary would
pay out of current revenues before
January 80. 1923.
WOULD LIFT BURDEN.
'Manifestly. II we are to continue
to pay OFF our war debt at the rate
OF more than $1,000. OOO. 900 a year. in
addition to approximately s1.250.000,-
600 for interest and sinking fund
charges, we must maintain q high
rate of taxation. But l am of the
opinion that by the end of this fiscal
year we shall have reached q point
in the reduction Of our war debt from
which the further reduction. except
through the sinking fund operations
and returns from salvage, should not
continue to impose wartime burdens.
1--WE reached the peak Of our gross
war debt on August 81, 1919. when it
amounted to $26,596, 900 900, of which
about $4,000 100000 wass in short
time loan and tax certificates. II re-
auctions are accomplished the public
debt at the CLOSE of the fiscal year
June so next will amount to about
s23. $50, 900 900, of which about $780,
O0O.0 will be represented. by tax
and loan certificates. The fact that
we will still have a honing debt that
should have been converted into
Victory notes will not present
situation warranting the maintenance
of the war level of tax burdens with
view of it's immediate extinction"
Mondell. urged Congress to hold all
appropriations to a total not exceed
ing $3,25O, 900. 900. The greatest cut
ting of estimates, he said, must be
for the army. navy and sundry civil
appropriations. The Administration
is asking Congress for $1.414,467, 76s
for the army, navy and Notifications.
Appropriations last year for these
services were $s45. 900 900. and he sug-
gests that this total should be re-
duced this next year.