Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1920-11-08
Treasury Officials Lay Draft
of Report Before Dept.
Chief.
TAX ON EXCESS PROFIT
Suggest it be Eliminated Would Sub.
stitute Graduated Revenue .Alea-
sure Affecting Incomes Over $4,000

Washington. Nov. S.--The nation
will face continuation OF the an
nual tax bill of S4,OOO,000,O00 for a
period CT at least three years if Con-
p.ress adopts officials and which, il
was understood last night, have been
laid before Secretary Houston for ap-
/ proval.
Mr.. Houston, it was stated, prc3a-
bly, Will include such recommendations
| in the form of an analysis Of the Gov
ernment's financial condition in his
Forthcoming annual report to Con-
igress. The analysis will show, and ac
ccmpanyin@ recommendations will
| suggest. it was said, that a three
year program for tax revision is re-
Cuesttd in order to meet maturin"
Government obligations and tovcr
current Federal expenses.
approximately $4,000. 100000 in VIC
tory notes. war savings securities AMI
Treasury certificates Of Indebtedness
viii be due for payment within IN"
next three years, Treasury figures
show. Retention of the present aggre-
gate level of taxes, or maintenance
cf the annual revenue Of the Govern
ment at abca. $4,000, ,0OO,0 900 then Is
held to be unavoidable on the face Of
average expenditures estimated for
the period.
Recommendation to be made by
Mr.. Houston, it is understood. viii
propose abolshment of the excess
profits taxes in their entirety and the
substitution therefore Of graduated
i income tax of substantially deeper
cut than under present revenue laws.
1t was believed the new income tax
would apply only to incomes above
$4,000 annually and that provision
would be made for graduated in
Icrease even on the additional tax as
! the amount of income grows larger.
Tne Secretary is expected to advise
Congress that the strictcst ccoromy
m Federal appropriations is ncces-
sary if the program outlined or the
bass of 4 $4,000. 900 900 tax bin is to
be accomplished. He has said that
there was no way to estimate with
anv degree of accuracy what even the
present laws wcsuld yield in revenue
because Of the rapidly changing con.
dit;ars in business As result OF al
tc--tne-war transition and readjuSt-
mert Mr.. HouSton's view cf this was
said to he that tax receipts wou Il DC
materially lower later in the present
fiscal year, which ends June 80, 1921.
ard that, therefore, the Government
ircome under the present revenue
laws could not be taken aS basis
fer calculating future receipts.
The attitude, which is held also by
practically all Treasury officials har-
irr to do with the tax collections
forecast a task OF great Difficulty for
the f,nmcrs of the new revenue acs.
The Treasury will insist strongly on
LEGISLATION which would produce 81
900 600 900 fer the next year. hu;
the ways ard means of getting It vii!
Z
be loft to Congress except for; the
s;,y.pe ..;cns contained in the: ,Trea-
.ony's report, in fact, the tax law
trainers will be Informed that there
is no alternative to voting rercnuo
act that will produce the required
jamount.
The program for handling the ma
,t;onal dt'bt-and its payment is Oh i
ratory-can he accomplished only
THROUGH annual revenue of S4.oOn,Ooo
900 Treasury officials held. With the
Victory notes maturing in 1929 and
the war savings securities fallin" Cue
in the interim and unit! 1924, it was
declared possibility that the $1,000,
0NO. 900 tax level might have to: he
continued until the latter ffate
Treasury views arc expected Il
clash with those of the Republican ma
jority in Congress: on questions ol
fw'ays and means Of obtaining. the need
cd revenues. But with the chang:n"
administration it was understood tht
present regime. at. the Treasury w"ue
mercy suggest and offer l;tt!e ar@u
ment in .support of their ssantf fo'
repeal Of. the excess profits take:
and replacement of the amouhts 81
Continued on Page Four)