The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-11-10
FOUR BILLION
EVERY YEAR
Houston Expected to Recon-
mend This Sum in His Firan-
cial Report to Congress
AGAINST EXCESS
PROFIT TAXES
SAID to Favor Plan of Gradu.
ated Income Tax of Deeper
Cut Than Present

Washington, Nov. THE nation
will face a continuation OF the annual
tax bill of $4,000, 100000 for period
Of at least three years if congress
adopts reCommendaticns drafted by
treasury officials and which. 1T was
understood tonight, have been laid be-
fore Secretary Houston for approval.
Mr. Houston, it was said, probably
I will include such recommendation in
the form OF an analysis Of the gov
Grnment's finanCia. condition in his
forthcoming annual report to con-
gross. The analysis wilt show, and
| accompanying recommendations will
suggest, it was said, that q thIee-year
program for tax revision is required
in order to meet maturing govern
mcnt obligations and cover current
federal expenses.
| Approximately 100000 in
victory notes, war savings securities
and treasury certificates Of indebted =
ness will be due for payment within
the next three years, treasury figures
show. Retention of the present ag-
gregate level Of taxes. or maintenance
Of the annual revenue of the govern
ment at about $4,00O,000,0 700 then
Is held to be unavoidable on the face
of average expenditures estimated for
the period. .. ~. n ..-a.
| Recommendations to be made by
Mr.. Houston, it is understood, will
propose abolish Clent of the excess pro-
tit taxes in their entirety and the sub
sutution Ofia graduated income tax of
\ substantially deeper cut than under
Fprcsent revenue laws. 1t was bCliev-
ed the new income taxes would apply
only TO incomes above $1,000 annually
ana that provisions would be made for
= graduated increase even on the ad-
3ditIonal tax assessed as the amount
OF income grows larger.
The secretary is expected to advise
congress that the strictest economy
N federal appropriations is necessary
II the progam outlined on the basis
OF $4,O00,000,000 tax bill is to be
accomplished He has said that there
was no way to estimate with any de-
gree Of accuracy what even the pres
ent laws would yield in revenue be-
cause OF the rapidly changing condi-
tons in business result of after
the war transition and readjustment.
Mr. Houston's view or this was said
TO be that tax receipt would be ma
I terially lower later in the present
fiscal year which ends June so, 1921,
and that therefore the government in
come under the present revenue laws
could not be taken as basis for cal
culating future receipts.
This attitude which is held also by
practically all treasury officials hay
ing to do with tax collections, fore
casts task OF great difficulty for
the trainers " The new revenue act.
The treasury will insist strongly on
legislation which would produce Si,-
! OO0,O00,0O0 for the next year but the
ways and means of getting it will be
left to congress, according TO the
suggestions contained in the treas
| trainers will be Informed that there is
no alternative to voting revenue act
| that will produ the required amount.
The program for handling the ma
| tional debt-and its payment is Oh
| ligatory-can lie accomplished only
through annual revGuc OF $4,000 ,000,-
900, treasury officials hold. With
the victory notes maturing in 1923,
and the war savings securities falling
'lue in the Interim and until 1924, IL
was declared q possibility that the $i,-
| 900, 100000 tax level might have to
be continued even until tho latter
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