The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-01
LEADERS DISCOUNT
WILSON TAX PLEA
Republicans Believe Short
Session Will Be Unable to
Meet Demands.
NEED GREATER INCOME
Pop Gum Measures Possible
Prior to General Re-
adjustment.
Special Despatch to THE New York HERALD.
New York Herald Bureau,
Washington. ID. c., Nov. 30.

| Specfdk Despatch TO THE NEW YORK HERALD.
New York Herald Bureau,
Washington. ID. C.. Nov. 80.
Republican leaders in Congress are
prepared to receive ironically any recon-
mendation for early tag revision In Presi-
dent Wilson's annual message. While the
necessity of tax revision is foreseen and
agreed upon. Republicans are inclined to
view Presidential recommendation as a
step to get from under this burden and
other pressing but delayed reconstruc-
lican shoulders when the session of Con-
gress opens. In any event, the new con-
trolling party will have to bear the onus
Of increasing taxes that are already
burdensome
From present indications the President
not only will recommend tax revision and
leave the accomplishment of this object
to Republican Congress In a crowded
short session, but Secretary Houston will
offer many suggestions as to the neces-
sity of the situation.
1t is indicated that the President will
urge immediate gener al tax revision. Re-
publican leaders of the House and Sem
ate say II Is impossible to give proper
consideration to such a task before the
present Congress expires. March 4.
Preliminary consideration by House
leaders and committees of Congress of
the estimates for Government expendi-
lures over the next fiscal year has
brought home general conviction that
the American people must be asked to
bear an increased burden of taxation for
at least two or three years.
Estimates of government requirements
for the next year will show q greater
total than tho aggregate of appropria-
lions for ordinary expenses of the pres
ent year--the larges. m record. With
tn. Treasury carrying a heavy burden
of floating debt and the Victory loan
maturing in the succeeding fiscal year
income well in excess Of the require
ments for Government running expenses
must be provided.
Tax revision Is certain. Revision up
ward of many of the present taxes and
institution OF new ones also Is certain.
Congress is confronted with big prob
lem in determining In just what manner
and just how soon this can be done.
There is nuch difference of opinion on
what can be done. Representative Mon
dell (Wyo.), floor leader; Chairman
Goode of the Appropriations Committee
and other Republicans are determined to
cut the estimates of Democratic Cabinet
officers, to the marrow. 1t is realized.
however, that a ruthless trimming will
not bring expenditures sufficiently below
receipts to provide for sinking fund
operations and retirement of the floating
debt
In this situation something must be
done to increase the Government In
come. The two big sources of Govern
ment income since John Barleycorn was
laid away are income profits and excise
taxes and customs receipts.
Republicans and Democrats alike
agree that it is next to impossible to
make any general revision of the rev.
enue act OF 1918 at the short session.
II VII be difficult task to pass the APP
preparation bills Even If this were not
so Republican majorities in this Con-
gress are not sufficient to permit free
Republican hand as they will be In the
next session. Tariff revision is prac-
tically out of the question.
This leaves as the only apparent solu-
ton the beginning of hearings at the
short session for general tax revision
at an extra session called March or
the passage OF "popgun' tax bills. BY
the use IF such ''popgun" or specific tax
birs the revenues could be increased
measurably For instance, IL might be
possible TO make an increase in the in
dividual income tax rate by the passage
Of simple bill for this purpose. Other
bills could be framed to Increase various
Items or levy new taxes.