The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-12-08
OF TREASURY
LAYS BEFORE CONGRESS-
EXPENSE OF CONFLICT
From April 6, 1917. to
Last June Government
Spent 80 Billions.

WASh!ngt0n, Dec. >. - NO
net cost OF the war to the.
American government was Axe
ed by Secretary Houston today
Mt .ee4.0lOO0O,O00. This, he
sad, represented the 'adtust.
cd expenditure Of the treas. 4
ury excluding all other outlay
which had mo relation To the
actual prosecution of the war
/ during the period from April
6, 1917, to June 80. last. which
he said covered the extremes
OF the governments war time
fiscal operations.
Total expenditures by the gov
ernment during the period covered.
excepting only postal disburse-
ments from postal revenues. were
$sS,83O.S12.89s treasury figures
showed and of this $16.073,S44,0S7
was obtained in taxes and revenue
from sources other than borrowed
money.
MIR. Houston said deduction Of
$9,523 .000,0O0, the amount loaned
to foreign governments. should be
made from the grand total since
these loans will be repaid and con-
sequently can not be charged as
actual expenditure. The secretary
made other deductions aggregating
approximately $4.50O. 900 900 which
he said represented the excess cost
of actual government operations
for the three years and three
months over what they would
have been in normal times.
HouSton's Report.
Washington, Dec. S.-(United
Press Secretary OF the Treasury
; Houston today asked congress to
boost the federal tax rate TWO per
cent on incomes under 5000.
. Houston at the same time asked
that:
Surtaxes be lowered on some
incomes over $1,000.
Corporations made to pay flat
tax of 20 per cent on undivided
profits.
Big increases be made in exist
ing consumers taxes on tobacco.
cigars, cigarets. candy. chewing
! gum and the like.
Gasoline be taxed two cents per
gallon and automobiles fifty cents
per horsepower.
/ Houstons proposals were con-
tanned in his annual report pre-
! scented to Speaker Gillett of the
! house at noon and are intended to
net the government approximately
$1,000, ,000, 900 a year. That part Of
the report dealing with taxation
was intended as a guide to con-
gress in passing new revenue laws
| to take the place Of those enacted
during the war period and which
now are failing to produce sufti-
cient revenue for the government,
according to the secretary.
At least $4,000, ,000,0 900 must be
collected during the next three
years. Houston declared, II the
government is to pay its ordinary
expenses and meet $500, 1000 ,000
worth of floating debts and Victory
notes before May l. 1928.
Concerning the excess profits tax
repeal OF which bushes men are
demanding. Houston wrote:
1.-The excess profits tax, however,
must be replaced not merely re-
pealed, and ! believe il should be
replaced in large part by solue
form Of corporation profits tax"
The twenty per cent tax On u1-
divided profits Of corporations Is
Houston's proposal for replace
ment. The corporations now are
escaping with single tax OF ten
per cent, he said. while individuals
and partners are Obliged to pay
surtaxes ranging up to 60 and ~
per cent on incomes over $1,000.
The lower surtax rates on in
comes slightly more than 5000
year would be increased by Hous-
ton.
The secretary also recommended
abolition Of the present consumers
tax on ice cream and similar luA-
uries and urged against a radical
use OF the general sales tax.
J Houston presented this summary
to show what his plan OF tax re-
vision would yield the government
CONTINUED on Page Fourtee1.)