The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-12-09
LITTLE FELLOWS MAY
ESCAPE HEAVY TAXES
Secretary Houston Believes in
Rich Bearing Heavier
Burden.

| Washington, Dec "a. N, s)--The
| little fellows" probably win Escape
higher taxes ON their incomes after all
Secretary OF the Treasury Houston is
not committed To n higher normal In
come tax~-affcctinR some 1000, 900
Americans OF tho srlall aalarled class,
4 evonl though his annual fepOtlfA te CON
kgreF suggested such n measure ma n
possible source OF $50, OOO. 900 incrensed
revenue, Tho secretary, II was said To-
day, In rendy 10 tell congress that
higher normal income tax rates viii
not be necessary " congress finds n wny
TO tap the corporate field for tho addl-
tlonal revenue desired
At the capitol, leaders on both sides
expressed doubt as 10 the adylsabilIty of
raising the small mans tax. and many
believe higher taxes will not be noces-
snfy Mt all.
The revision OF revenue taxes will
be made by republican congress with
republican president some time after
March next" said Representative Jo-
aeph Fordney, OF Michigan chairman OF
the ways and means committee
Secretary Houston, although ref,ia.
Ing to discuss the Items In detail In adj
vance OF his appearance at tho capitol,
To-Day had before I'm nm important rec-
ommendatlon by the treasury experta
showing that raise OF or 4 per cent
In normal Income taxes can he avoided
by Imposing adequate rates upon corpo.
rationa that nro over capitalized, MS well
hs those which, by various suhterfugoa,
are dodRlnp payment OF their tax liabil. |
itN to the government.
Houaton's original table OF estimated |
new tax sources computing $id5 900 900 |
additional revenue by an additional 6 |
per cont on corporation income tax. In |
now supplemented by further pro-
posnl TINT nm lncrensc of 10 TO ~ per
cent upon the same source win bring
forth another tiiS 500. 600. This later |
ter Item treasury experts think would |
almost entirely displacc tho item aug-
gested for higher normal income taxes
The burden OF Secretary UouRton's
argument to congress, II was said. will
he IN loosen Tho hidden wealth due 10
the government from undistrlbuted
pront channels ana through other corpo-
rate avenues. The urgent need for
diverting into the treasury tho tax oh
legations thBt now 20 into tax free Sc
curltIes viii be emphasized and he IA
prepared 70 champion them as against
nny par 10 further burden already
heavily burdened taxpayers In the
groups below the wealthy classes
Houston wiz luhst upon deop cuts
IN the budget ~ nearly So 900 900 goo
ne recently laid before congress
From the attitude ~ Secretary Hous-
ton today ana tho golced objections
tom congress II In believed taxpayers
n the small wage earning classes who
ire now pnylng per cent normal in.
'ome tax on net Incomes below IS 600. |
minus the exemptions allowed for de-
lendents. viii not sufrcr added bur-
lens
Secretary Houston'a advisers nave
,ivcn him many Altrrnnt proposals
g submit to congress Tor ~ guidance !
For example, one item IN long list
II other possible sources OF new taxrs
= an estimate thAt about 500. 000 0O0
additional revenue chn be obtained by ,
Iouhitng the stamp taxes MANY eiab.
rate tables have been prepared :
Nmong these ~ Jne designed to show =
hat II other expected sources fail as
cevnne producers, n would be- possible
" Increasing the normal 'ncume tax a,
ate from per cent TO ~ per cent,
N incomes shove S. 200 10 raise more
han 500 00u 000 = year
Secretary Houston hAs been IN
ormed by revenue auditors that
e"althy individuals under the progres-
I've Income tar schedules, are now {
holding out nnt hillion dollars a
ear THIS despite The positive belief
: the treasury that the actual income a.
7 the 'tChcf taxpayers hhr suffered no
ecline For instance Houston has al
isrf the Income taxes iron persons
pvinp lncomry o. 80 0nO . yraf ana
vor have dfopprG from about 81 no0.
lU 200 IT, 1919 e shout 1922 nnn Nhe this
ear This II one - the things he q
rsks 60 correct