The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-12-20
MONDELL STATES
FINANCIAL PLAN
OF REPUBLICANS
Would Fund Part Of War
Debt. Abandon Ex-
'''':.' cess Profit
'F Tax }k

\ WASHINGTON. Promise of re-
duction In taxes by passing a part
OF Americas war debt on to future
generations was made by Representa-
tive Mendell, Republican leader in
the house.
Leader Mendell outlined the finan-
cial plans of the Republicans as fol-
lows: a- N.
Repeal Of the excess profits tax.
Abandonment Of some special
taxes.
Reduction Of heavy surtaxes on
incomes. i,
Funding Of a part of the present
floating debt. at''9t
Refunding of the Victory loan.
Drastic restriction in government
expenditures.
Re-enactment of protective tariff
duties. @3
MendelPs plan of passing part of
the war debt along to future genera
tions running fifty or sixty years
differs from the administration plan
as presented by Secretary Houston.
The latter proposed taxation to pay
off the floating debt and the Victory
loans at maturity which would pre-
clude any reduction in the volume
OF taxes although recommendation
was made for abandonment of ex-
cess profit tax and readjustment of
other taxes.
The repeal of the excess profits
tax the abandonment of some of the
ND hA 20
the heavy surtaxes on incomes is ad-
vised by Mendell. He says that with
the practice of economics, the re-
funding of part of the floating war
debt and increased receipts from
customs duties the federal treasury
can be protected.
The secretary of the treasury"
says Mendell, docs not base his
recommendation for continuation
of heavy tax levies, wholly or in the
main, on anticipated increases of ap-
preparations but rather not only to
meet current bills, including inter-
ests under sinking fund charges, but
also to retire the present floating
Indebtedness and considerable part
OF the Victory notes before the close
of the fiscal year 1928.
ION September 80 last there were
outstanding loans and tax certificates,
maturing within year in the sum
Of 100000; eight hundred
million war savings certificates will
mature January 1, 1925 and four
billion five hundred million of Victory
notes becomes due May 20, 1928.
All these tax and saving certificates,
totalling three billion one hundred
forty-seven million and a half bill
lion of the Victory notes or a grand
total of three billion sixs hundred
forty-seven million, the secretary
would pay out of current revenues
before January 80, 1928.
"Manifestly, if we are to continue |
to pay off our war debt at the rate
of more than billion and a half a
year, in addition to $12, 100000 for
interest and sinking fund charges we
must maintain high rate of taxa
ton. But l am of the opinion that
by the end of the fiscal year we shall
have reached a point in the reduc-
ion, except through the sinking
fund operations and returns from
'alvages not continued to impose
wartime burdens.
1--WE reached the peak of our gross
var debt on August 81, 1918, when
t amounted to $26,596, 900, 200 of
which about $4,000,000, 1000 was in
hort time loans and tax certificates
t reductions are accomplished the
'ublic debt at the close of the fiscal
ear June 80 next will amount ito
bout $23,250,00O,000 of which
bout $1,000, 100000 will be repres-
nted by tax and loan; about 81 $780,
100000 will be represented by tax ..
nd loan certificates. The fact that
re still have floating debt that !
hould have been converted into Lib
rty notes, will not present a situa- ,
ion warranting the maintenance of
he war level of tax burdens with
lew of its immediate extinction"
Mendell urged Congress to hold :
II appropriations to a total not ex- =
eeding 1920, 900, 900. The greatest :
ltting of estimates, he said must !.
e. for the army, navy and sundry :
lvil appropriations. The administra-
on is asking congress for $1,414,-
67,76S for the army, navy and for },
fications. Appropriations last year =
,r these services were $4S5, 0O0,- =
90 and he suggests that this total !.
lould be reduced this next year. !.
IL