Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1920-12-09
TREASURY Chief IN
FAVOR OF HIGHER.
TAXES ON INCOMES.
SECRETARY HOUSTON WOULD
INCREASE RATE PAID BY LIT
TILE FELLOW-SHOWS HOW
REVENUE MUST BE RAISED.

Washington, Dec 9.-TaX changes
that will better distribute the tax
burden hut not reduce government
revenues wdre recommended to con-
gress today by Secretary of the Treas
ury David f. Houston in his annual
report,
Secretary Houston's recommends
tions hit every home in America, tor
he recommended that income taxes
be returned to the 1918 basis. The
recommendations provide that the
man with an income less than $4,000.
now paying a 4 per cent tax, would
pay 6 per cent, and that the man
with an income of more than $1,000
who now pays 6 per cent tax would
pay II per cent tax
The need Of the hour Houston sald
Is the repeal Of the excess pfoIltS
taxes REIMBURSEMENT of surtaXeS ana
the adoption Of some form OF sales
or consumption" taxes upon certain
Injuries,
Proposed revision, he urged. must
he made to keep the level or govern
ment revenues up to at least $4,ooo,- /
600 900 through the fiscal year, w., /
and possibly longer He minated
that present scales of taxes may not
be sufficient to meet the demands OF
the future.
The new luxury tax yields, togeth-
err with other sources for new rev
enues, totalng s30ojo0oo00, were I
estimated by Sec Houston as fol T
lows;
Normal income tax, by increase OF .
the 4 and per cent rates to and /
10 per cent, $l59,940000.
Readju1ment surtax rates $3.50
100000.
CORPORATION income tax, bearing an
additional per cent. 1866 100000.
Corporation undstributed profits tax
$500 100000.
Stamp taxes at higher rates, Sl34,-
100000,
Federal license tax on use of auto
mobiles at tax rate OF 80 cents per
horse power, S100.000,OO0.
Cigars at rate of 25 cents per 1000
additional, $5,0o0,00O.
Cigarets, increase of 81 per thou
sand. $70.000000
Tobacco and snuff at cents a
pound additional, 100000
Gasoline, cents a gallon, 100000 .
600.
Theatar admissions 10 per cent ad /
dtional, S7O000000.
Automobile and ACCESSORIES At 5 /
per cent additional sale rates, 500,
900 900
Musical Instruments, 5 per cent
rtae increase, $13,00o,000.
Chewing gum, 7 per cent additional,
100000
Candy ) Fer cent additional, 500
100000
Toilet soaps and powders, per
cent additional, 100000
Jewelry ard precious stones, ) per
cent additional, $25000.000.
Motion pictures films, per cent
additional, $4000,000
Perfumes. cosmetics and medicin
al dl tltltS, ~ PEI ttIlt lIltItdNt tdA
upon sale by manufacturer, producer
or importer, $l6000,000.
/. Excess profits tax should he re
placed in large part by some form OF
corporation profits tax.
2. Income surfaces must undergo
drastic notifications, as they are ex-
cessye and driving weather. tax
payers to transfer their Investments
in tax free securities, settling up
needless and dangerous competition
with industrial and railroad securi-
ties, with consequent impediments to
business development and foreign
trade expansion. The secretary as
serted:
"One partial substitute for the ex-
cess profits tax would be tax on
undistributed profits of corporations,
as nearly as possible equal to the sur
tax imposed upon the saved income
of the individual. If individuals do
Ing business in partnership pay 90
per cent on undistributed profits. in
dividuals doing business as corpora
ton should pay 20 per cent.