Norwich bulletin., 1920-12-09

where the maximum of 20 per cent on saved incomes in reached. From S30,eO0 to $40, ,9p0 the rates would bo 20 per cent. on saved and 25 per cent on spent $4o,- 900 to s5Q,o0o, 20 per cent. and 30 per
 cerit. 1; S50. 900 to s75.000, % per cent. and | s5 per cent. S75, DOC to $1o0.00e, 20 per cent. and 20 per cent. and over s1oo,0oo 20 per cent. and 50 per cent. or total tax of 70 per cent. The present maximum rate is 70 per cent on incomes of S1,000.000, but Mfr Houston declares 1t has long passed the | point ef. It's minimum oductivity, since | it encourages the investment in tax e6- ennpt securities. He says the "oniy ef- l fective- way to tax the rich is to adopt rates that do not force investment in tax 1 exempt securities 'ssf R I The new ratss. while not laying as high
 a levy against the great incomes Will, the secretary expects, produce a greater re- 1 turn to the government since the wealthy
 class will not find it profitable to invest ia bonds of states; countries or naunicipal- 1 ties which are tax exempt but pay a low CT rate of interest. 1s sLs 1s9 These possible sources of income are mentioned for the information of con. gress," Mr Houston sayA eWf1ileEI shall not attempt to discuss them. attention should be called to the new and additional | ,G1BS tdAGS.i LAOdSOIc1 ~udftl btcH given for the belief that no valid .objec- ton exists to the employment of mod. crate number ofaconsump ton taxes prop erly. selected, but it would, In my opinion be neither wise nor expedient to increase radically the volume of consumption tax es. fss The articles included in the suggested list of additional consunptio
 taxes have not been selected because theli
 pse is particularly harmful or. in any Sscnse less. legitimate than those not irls eiuded. Consumption taxes must be judged by. practical standards What ls1ieuid be sought fare a few consumptiofi taxes which tan the surplus income which ! is, being wasted, not a conglomerate null tjplicatien of petty taxes upon every arti- ce of luxurious or unnecessary corsunp-
 ltion which. can neither De clearly defined t:heapfy collected nor administered with
 but widespread evasion"
 Repeal of Soda Fountain Tax.
 The repeal of the tax. on soda fountain
 and other beverages is asked, the Secre- tary says, because the collection of the l tax the aggregate of which is small. has
 presented an administrative. problem oI : magnitude Added to that, Mr. Houston $ says, there has been constant and wide.
 spread evasion of such taxes.
 The excess profits tax, Mfr. Houston , tdeclares, has not fulfilled the theoretica
 grounds upon which it was enacted and 2 has been found to be wrong both in the toFy and in political philosophy. He says
 l ii discrIHlinated against the conservative. E ly financial corporation while aiding ria- ) terially the firms whose capitalization is
 exaggerated. He urges that it be le. 5 placed by some form Of a corporation -i profits tax mot only on the grounds of the ,I governments revenue needs but upon ? grounds of equality and justice" The | corporation profits. the secretary Contin.
 tues. should not be allowed to escape witt | q tax of 10 per cent. while other taxpay
 i CTS are subjected to taxes On their in comes ranging as high as-7o per cent
 Mir. Houston agaia~urges the necesst. for rigid economy, ill government expendi ' l ture, asserting that only by conserving tll, < finances carefully can the expenditures b, kept within the s4,e0e GOO ,000 annual,
 which he suggests should be the basis fo F a revenue program. He is hopeful, how
 ever. that with the "heavy burden :, placed by the transportation act out o U the way, there will be a substantial Axces
 shown by government receipts over gov ', eminent expenditures
 'i An. analysis of the government ex T. penditures for the last fiscal year de e velops the fact that almost one-ffth c
 the 00,000,000 paid out was sper Y in connection with federal control an = the. guaranty of earnings for the raj
 troads- One department of the goverr D. i1nent-the war department-speat mor
 than was used in connection with tf r. carriers. The war departments tota IS the record shows, has $1,611. .000, ,OC :" against s1.0S7, ,09eooO for the railroad le1 Discussing the war debt, and a pr, l. gram for it's retirement, Mir Housto -X says that within the next 50 months u cr government will have to pay off appro: n- imately S7,500,o0O,oo0 in ietory note Id War Savings certificates and treasul ed certificates of indebtedness He prc he poses that the treasury certificates n SC be funded further; tat they be retir, DO las rapidly as the treasury's condition