The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-12-11
HOUSTON WILL
IGNORE KITCHIN
To Make No Reply to His
Attack on Treasurer's
Estimates and Plans
WILL BE
WHAT HOUSTON SAID
Indirect Appropriations VIII Provide
The1p-HOustOn's Substitute Taxes
Would Make Burden More Uniform
Consumption Taxes Already.

Would Make Burden More Uniform
Consumption Taxes Already.
BY. DAVID LAWRENCE.
Especial Despatch to The Reformer.)
Copyright 1920.
WASHINGTON. Dec, 11.-Secretary
Houston has decided to ignore the attack
made upon him by Representative Claude
Kitchin. Democrat. of North Carolina,
who thinks the tax pans announced by
the treasury department are too easy on
the big corporations. There is a suspicion
in treasury circles that Mr.. Kitchin, who
boastcd when the present tax laws were
considered that .he- voted for them with
his eyes shut" also failed to read the re-
port of the secretary of the treasury. For
the wall that is coming in from the big
corporations is quite the contrary-thcy
insist Mr.. Houston is too hare on-them.
The secretary of the treasury. who is not
d politician and cares much less about
party politics than any man in the gov
rrument. is in the same position as is the
average neutral. who used to be called
pT0-German by the British and prohibit
iSlIby-tlH Germans. the NEST that
can be gotten out Of the treasury depart
Iarut i'm reply TO the agitation about the
proposed tax revision is n suggestion that
the report be carefully read.
Instead of proposing an increase in
faxes. Mr.. Houston insists that he has
recommended ii reduction in the total
amount that the American people should
pay. For instance. the people paid an ag-
/ grCgatC of six billions the year before last.
and something over five billions last year.
Now they are asked TO pay in the neigh
borhoGd of four billions. The secretary
Gf the treasury proceeded on the theory
that on account of the slump in business
conditions there wouldn't be enough mon
~ available for the government through
the excess profits taxes. But he didn't
quite suggest that the excess profits tax
be- repealed and nothing put in its place.
MIR. Houston proposed that the substi-
tute taxes shall place Il uniform burden on
all classes of business. namely. that cor
porations alone shall not be taxed but
that partnerships. sole propriet0rS and
other concerns that are not largely incor-
porated shall participate in the tax pro-
gram 50 hat the amount taken from bust
ness as a whole shall be approximately |
the same as heretofore.
rs for the consumption tax. Mr.. H0uS-
iton points out hat we already have taken
on Wearing apparel. soft drinks and other
N'iNthith III every udA -lAlt. iitSA
recommendations are that some of these
ba abolished and certain others taxed
more. The point Is that if congress ae-
cepts the proposed budget Of four billion
dollars the painful fact is that existing
laws may not be sufficient i'm view of bust !
ness conditions to yield that sum even
though the same Avs have in the past in
clIded five and six billions of dollars in
two different years. So Mr.. Houston felt
II to be his duty to list all the various
ways by which revenue could be raised. !
The tact that complaint has come from
some OF the interests which would be af-
fected by some of these suggestions is the
inevitable result of mentioning them. No
body wants TO have an increase in taxes
and of course members of congress will he
pressed by local interests to protest
against any taxes that put a burden on the
iR1uential business men in their re>pec-
tive communities. So if the fax uucStiou |
Is viewed through local eyes. the treasury
department viii be under constant hom.
bardment, not only under this admins
tralon but the next one as well. If the
question Is examined through national
eyes, the total amount paid by the Ameri-
can people will be seen as less than any
previous year. Is four billions. however.
the minimum amount on which the govern
ment can get along? Republican lenders
say they can knock a billion dollars ont of
the estimates submitted by the treasury
Tor the coming year. But the treasury
calls attention. AZ did President Wilson.
To the congressional habit of making an
preparations out of revolving funds. More
than a billion dollars was spent last wear
IN that way, after the estimates had been
pared down by a billion dollars. proba bly
the adoption Of a budget system and the
making of all appropriations directly will
cure inns tauit IN government finance. but
ultlI II comes congress may be in the DO
sitlon OF taking a billion dollars off a list
or paper tlmat and of finding the same
billlon eventually on a list of expenditures
10 get relief from taxation. il will be
necessary not merely to reduce the csti-
mates but to prevent indirect appropria-
lions. Moreover. an ANALYSIS of how
secretary Houston made up his budget of
TOUR billions shows that one and one-tbird
Dllllons go to pay interest on Liberty bonds
and other public debt. Another billion i
wanted by the military establishment
Nhlch includes plans. for such things as
UNIVERSAL military training and the main |
tehance OF a fair-sized army To cost
SUBS, 100000 The railroads win cost IN
the nelghborhood of Il billion dollars and
DC used to cost the government inst a bill
non dollars to run in pre-war days. Al
that the government will face n deficit on
outstanding debts. Pruning government
department estimates win help some. hut 4
1t lS not believed the general total thai
must be raised By taxation will he Suf-
fclentiy reduced to be felt BIZ the nnbI;c /
at large, no matter whether MIR. Housfon's
plans or those of the next administrator
are adopted. For, in a nutshell. some
individuals may fare better and other
Wofse-the total tax bill. will be about the