The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-12-11
Houston Insists He
Has Recommended Cut
In the Federal Taxes
BY DAVID LAWRENCE
Copyright by Thu .nteti.sraCer)

Washington. Dee. =" -- Secretary
Houston has decided 10 !enore the at
Ia, \ made upon him 10y EeprcSentat!H"
,l-udr Kltchin. Democrat. Of North
Carolina. who thinks The tax plans an
t.uuac'd BY IN" treasury Department are
too '.'~y on the biz eorp"rationS: rhGTrs
= suspicion IN the treasury circles thai
Mr.. k;tch;u who hUaStcd when the pres
.ut IAN laws wer" considered that he
voted Cor them with his eyes shut
AIS" failed % read the report OF mH
secretary II the treasury. For the wall
hat -, coming n from the big corpora
ti"nS is Vuit" the cvutrarE--thcy insist
Mr.. N"uS;vu IS too hard on them.
Secretary ~ the treasury. who is not
ru,it;c:an and cares much less about
party politics than any man in thc GOV
yrumcnt. - ~ The sam" position as -
n" average nrutral who used (" be
pr".BrittSh by IN" Germans. So the
most that v;IlI be gotten Out ut the treas
ury department. IN reply 10 The astta-
lion about tn" proposed tax revision Is
Claims Reduction.
l"Stead " processing an increase. in
taxes. Mr.. Houston, insists that he mas
amount that tn" N':,> !can people should
pay. For iu>,'u' q. the people paid an
1SsrcEat. e.: ~ hj.lIons the year be-
fore last ami something over five bill
,
u pay in t. r.lshborhood Of four bill
lions
The Scci":~r! IT til" treasury pro-
"r,dyI On n" Theory that on account
81 ths slump IN business conditions
ta'r- wouldn't be Enough muury avail
Nh," fer the government through the ex.
cess profit taxes. But he didn't suS-
S'S' thN' 'hv ,NcrSS profits Kan be- re-
p'ri'd and ugth:NE put in their place.
Nj Houston proposes that the SubSti-
tU;c t.A"S snail place a uniform burden
on III cases 81 business. namely that
corporations alone $a1. not be taxed
0", mat partnerships. sole prupr!etors
tnd other courrrhs that are not legally
incorporated shnii participate in the tax
program -" tHIt the amount taken from
business A. i wh"i" shall be approx
mAtc!y the same as before.
The Consumption Taxes,
As TOR the consumption TAX. Mr. nous-
ton points Vut that We already have
tINr> on wearing .pparc.. soft drinks
Rud other articles consumed in every
day lif". HIS recommended tons are that
some o. these b. abolished and certain
UturrS tH\cd more.
The point Is that If congress accepts
thc proposed budget Of four billions Of
dollars ;he painful fact - that EXISTING
tLN laws may not be sufficient In View
OF business conditions to yield that sum
oven though the same laws have in the
past yielded five and six billions of dol
,arS in TWO different Years. Su Alr.
Houston felt II 20 DC his duty to list all
Tho various ways by which revenue
could be raised. The fact that complaint
has como from some OF the interests
which would he affected by some Of
these suggestions is the inevitable re-
Su.t OF Mentioning them. Nobody wants
20 have an Increase IN taxes and OK
curse members OF congress- will b
dressed by local interests to protest
rg,l.nSt any taxes ihIt put i burden on
HI influential business men IN their
.,y,Ff .
question - ytcwed through local. eyes,
,ar treasury department Will be under
,cnsttnt bVmhardment not only under
ms administration but the next one as
we'll. II the quest ton Is examined
through national eyes, the total amount
i>,Id by the American people Will be seen
NS less than any previous year.
May Knock OFF q Billion.
Is tour billions. however. the m!ni-
mum amount on which the government
AN get along: Republican leaders say
thry can knock 4 billion dollars out OF
the estimates submitted by the treasury
Ter the coming year. But the treasury
,ti.s attention AZ did t'reSiden Wilson,
To- the congressional habit Of making APP
preparations Vut OF revolving funds
More than billion dollars MAS spent
.ast year IN thac way after the est.
mates had been pared down BY 4 billion
dollars. Probably the adoption OF \
budget system and the making OF all
appropriations directly Will cure this
tauIt IL gov ernneut liuance bu; until Ii
comes congress may be IN the position
1T taking a billion dollars off list OF
pIpcc estimates adj OF finding the same
pH!.uu eventually on Il list Of eXpendl-
turrS.
To get relief from taxation. It will b..
necessary not merely to reduce the eSti-
mates but 10 prevent indirect appropri4
lions. Moreover an analysis Of how
secretary Houston madc up his budget
ut four billions. shows that one and one
,hlrd billions go 10 pay interest on Lib
vrty hundS and other public debt. An
other billion - wanted by the military
"stahii shlncnj which includes plans for
such things a. universal military train
.uS and tn" maintenance OF fair sized
army - cost Sb%\. "On 100. The railroads
viii cos; III the urighburhOUd uf "A billion
dollars ~ run N pre-war days. At that
TN, government VIII fac" Il deficit on
outstanding debts. Pruning GoveruntriL
department estimates will help some,
but il - not believed tn" general u al
'hat must b., raised BY taxation NH -,
sufficiently reduced e. b" felt Ivy the
publ" At larS'' no matter whether Mr..
IG"uSjou'S plans W thnSr ct 'hc u"Nc
administration rr. .ld"p'yd. For In =
nutshell some !n.pI .!Ur'S may Tar" be-
ter and others WurS. the total tax bi.l
Will be- about tn" same. a. Mr.. Houston
suggests SImpiy because that is IN"
amount m. government must have 10
/,