Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-08
ASKS TAX REVISION
ON4B|LuON BASIS,
W|THH|GHERLEV|ES
Houston Proposes 2 Per Cent
Increase on Salaries Up
to 5000.
. URGES EXCESS PROFITS
LAW REPEAL, IN REPORT
Revises Luxury Rates and Adds
$2,000,000 to Theaters, To-
bacco and Non Essentials.

Immediate revision of the nation
tax laws on the basis of an annual
levy of $4,000. 100000 for a period OF
four years. and including an increase
of per cent in the taxes on incomes
up to $4,000, is urged by Secretary
Houston in his annual report sent to-
day to Congress.
Repeal of the excess profits taxes.
luxury taxes, including the levy on
soda fountain and similar beverages.
and a readjustment of the rates in
.the higher groups of income taxes, is
proposed by the Treasury chief. To
meet the losses brought about by
these proposed changes. Mr.. Houston
recommends revised and new taxes, to
yield about $4,000, 900. 900 as follows:
A tax of 20 per cent on corporation
profits. distributec or undistributed,
in addition to application of a higher
surtax rate. to yield $500, 100000.
An additional tax of per cent on
corporation incomes. to yield $685.
100000.
Readjustment of surtax rates on in
comes, to yield an additional $780, ,ooo,-
600.
Adjustment of the $4,000 exemption
sllow.d sS ed ooo co1g0rations Pc on income. to
An increase from the present 4 per
cent to per cent in the tax Of in.
comes Of $4,000 or less and from s
per cent to IL per cent in the tax on
incomes between $1,000 and $4,000,
the whole estimated to yield $780,
$4,000 annually.
Sso,00o.0oo Fron gasoline.
A tax of . cents q gallon on gasoline
for oor 20 a nd oil
to yield $s0,000.000.
A federal license tax Of SO cents per
horsepower on the use Of motor cars,
to yield SLOT, 100000.
mobiles (other than trucks and
wagons) and motor cycles and motor
car accessories to yield 500. .0O0, 600
10 per cent additional tax on
theatrical admissions to yield t70.000.-
600.
An additional tax of 50 per thou-
sand on cigarettes to yield $70.00o. 900.
An additional tax of IS cents per
thousand on ciears to yield $s. .QNO. .0eo.
An addfticnai tax OF cents per
pound on tobacco and sRun e Yield
s%ssessi a. sSssiisiosl q { d 81 p.t IN sn
candy TO yield $4,000. geo.
chewing gum to. yieId $4,000. 900.
An additional tax Of Z per cent on
toilet soap and toilet soap powders to
yield $4.oeo.ooo.
manufacturers, producers or import
ers of perfumes. cosmetics and medic
inaf articles In lieu of the present tax
on the consumer to yield s10.oeo. eco.
An additional S per cent tax on
5eweiry and precious metals to yield
$25.000.00O.
An additional tax of per cent on
musical instruments to yield $13.o0o,-
o0e
An additional tax of per cent on
motion picture films to yield s..
600. 600
In the readjustment Of surtaxes. Mr..
Houston proposes the division of in
comes into saved" or reinvested and
spent" On the former class he
would limit the highest tax to 20 per
cent. while the income spent would be
subject to tax ranging as high as
so per cent. Under the plan pro-
tween $4,000 and $4,000 would be
taxed per cent on the part saved
and the same on the part spent. The
same ratio with graduated increase
would apply to incomes up to 5000.
but incomes above that figure would
pay a higher rate on the part Of the
income that was spent than on the
income saved.
Seeks Transfer Of Bureaus.
Bureaus under the administration
OF the Treasury Department which
have no relation to the fiscal affairs
Of the United States should be trans
ferred to some other department says
Mr. Houston. thus relieving his de-
partment of much work. He men,
tions in this connection the bureau of
war risk insurance. the public health
service, the office of the supervising
architect. the general supply COM
1nittee and the prohibition unit of the
bureau OF internal revenue
Referring to the salaries paid in
his department, the Secretary says
the present pay rolls are haphazard
land clearly need revision" and Con.
gress is asked to act in that connec-
ton during the present session.