Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-11-11
1 BILLION A YEAR
TO RUN j. 5. GOVT.
treasury Will Suggest to Con.
gress That Continuation Of
Annual Tax Bill for Three
Years Is Unavoidable

Washington. Nov. Z. (By the Associated
'ress)--The nation will face a continue
ION OF tho annual tax bill of four bill
ion dollars for period Of at least three
years If Congress adopts recommends
lions drafted by treasury officials and
which. 1t was understood tonight, have
been laid before Secretary Houston for
approval.
Mr.. Houston. it was stated. probably
will include such recommendations in the
form of an analysis of the governments
financial condition in his forthcoming
annual report to Congress. Tho analysis
will show, and accompanying recon-
mendations will suggest, 1t was said,
hat a three-year program for tax revi-
sion is required in order to meet ma
uring government obligations and cover
current federal expenses.
Approximately eight billion dollars In
Victory notes war savings securities and
'reasury certificates of indebtedness will
DO iue iog payment within the next
.hree years. treasury figures show, Re-
'ention OF the present aggregate level of
-sxcs, or maintenance of the annual rev.
snuc Of the government at about four
Dillon dollars then Is held to he I'm.
avoidable on the face of average expen-
!ltu,es estimated Cor the period.
Recommendations to be made by Mr..
Houston, it is understood, will propose
qbolsr,nent Of the excess profit taxes
Ia their entirety and the substitution
herefor OF n graduated income tax OF
substantially deeper cut than under
present revenue laws, 1t was believed
the Jew income taxes would apply only
80 incomes above 5000 annually and that
provision would be made for graduated
Increase oven or the additional tax as
tho amount Of income grows larger.
The secretary ~ expected to advise
Congress that the strictest economy in
federal appropriations is necessary II
the program outlined on the basis of Il
four billion dollar tax bill is to be &C
romplished.
Practically all treasury officials
having to do with tax collections fore
last task of great difficulty for the
trainers of the new revenue act. The
treasury will insist strongly on legis-
lation which would produce four bill
lions for the next year but the ways
and means of getting 1t will be left to
Congress except for the suggestions
contained in the treasury's report. In
fact. the tax law trainers Will be In
formed that there is no alternative to
voting a revenue act that will produce
he required amount.
The program tor handling the ma
tional debt--and its payment is oblig-
atory-can be accomplished only
through annual revenue of four billion
dollars, treasury officials hold. With
the Victory note maturing in 1928 and
the war savings securities falling due
in the interim and until 1924, it was
declarM a possibility that the four
billion dollar tax level might have to
be continued even until the latter date.
Treasury views are expected to clash
with those of the Republican majority
In Congress on question OF ways and
means of obtaining the needed rev.
enues. But with the changing admins
tration, it was understood, the pres
ent regime at the treasury would
merely suggest and offer little argu-
ment in support of their stand for re-
peal Of the excess profits taxes, and
replacement of the amounts so gained
by higher income taxes
1t was expected that tariff question
would be brought into the discussion
and that those in charge of tax legis-
Iation might seek to offset some Of the
deficit by higher duties and customs
according to the treasury's argument
for wiping the profits tax provisions
off the statute books.
Meanwhile the treasury will carry on
its announced program of short term
financing, issuing certificates of indebt-
edness to meet current requirements
in anticipation of quarterly paymen,
of income and profits taxes.