The Beaver herald. [volume] (Beaver, O.T. [Okla.]) 1895-1923, 1920-12-02
TAX LAWS TO REMAIN UNTIL
AFTER MARCH q


Washington. Nor.-In the opinion
% Senator Penrose. Chairman Of
the Finance Committee. communi-
Gated 70 Senatorial colleagues here
and to influential members OF the
Ways and Means Committee. no at
tempt should be made 10 repeal the
excess profit tar. or amend the rsye-
nue. laws until the special session Of
Congress. which President-elect
Harding has announced that he will
call soon after March &.
Senator Pclrose said that in bis
opinion anything that might be done
hy the Republican Congress along
these lines would probably be We
toed BY President Wilson. and.
therefore. II would be a waste Of
time for the Republicans to attempt
10 carry into effect party policies
during the final months OF the VIII
son Administration
1T may be wise not only TO re-
peal the excess profits tar. but to
simplify tar forms for the calendar
year 1870" said Senator Penrose.
but do not believe that the con
census Of opinion in Congress
would favor undertaking the repeal
Of any taxation schedules until the
Republicans enter into full control
Of the Government myself fzT-
or sfnplificafion of the tax forms
50 that the tar payer can know
What he has TO report I hope that
we may do this before the tax pay
era are required 10 make the 1870
1epcrt--
Senator Penrose further indicated
that no advantage could be gained
By repezlfng the exceHs profits tax
a the coming session. as Congress
undoubtedly would not favor repeal
iag the tax for the calendar year
1890. ana there was. sufficient time
. repeal II al the special session.
rhen other features OF the reve-
nue Law would be considered and
reneral revision might be under
taken.
There is such a demand from
business men for repeal OF the ex-
cess profits tax. supplemented by
the recommendation OF Treasury Of
ficials. that there is reason to be-
l!sve tha; Congress will not delay
action until the whole subject of
tex revision can be undertaken. II
Z
with taxation matters that this tax
VIII be repealed early In the special
ressson 50 that the tax need not be
collected for 1921. This must be
done in the summer of 1921. or.
according to Secretary Houston. II
viii be necessary to collect the tax
fer that calendar year.
What is puzzling the authorities
Is how to find a substitute for this
Ia. There is no argument against
its repeal. In the Ways and Means
Committee last session. X. c. Lef-
fingwell. then Assistant Secretary of
the Treasury. suggested that the in
ccne tax might be Increased to pro-
yidc revenues coming from excess
Profits. This view was opposed by
the committee. which was nearly
ready to accept a tax on sales and
real estate transfers. Many object
to sales tax.
Another suggestion is to repeal
the profits tax without trying TO
| supply another source of revenue to
take its place. In such case the
cxrenditures of Government must
DC reduced TO a minimum. IL this
! Is done, II Is argued. there will be
/ sufficient revenue to meet ordinary
expenses OF Government. but not
to redeem the Treasury certificates
and Victory notes in 1921. amount
ing In all to about $4,000, ,000. 900.
Some financial experts hold that
these obligations should not be re-
| deemed. but should be refunded in
TO long-term bonds and cancoied in
! fifteen years, when the condition of
the Government will be such as To
carry out the transaction without
putting such burden on present
day tax payers.
Different schools OF financiers will
undoubtedly come into conflict
when the subject of tax revision
comes up In Congress. Underlying
the differences. however. Is the gem
eral agreement that the excess prof
It's tax must be repealed. The
struggle will come over whether a
substitute tax is necessary or wheth-
er the present situation can be TAX
en- care of by extending the period
" Indebtedness maturity.
Ef;fE OR Rim AT~rvTu-nr