The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-12-09
To EQUAL|ZE
TAX BURDEN
SECRETARY HOUSTON
IN RECOMMENDATIONS
Declares for Repeal Of the
Present Federal Excess
Tax Enactments

Washington, Dec. S.IMore equitable
and just distrIhstion Of the four billion
dollar tax burden which the American
people must bear for at least four more
years. was recommended to congress TO-
day by Secretary Houston. who, in his
annual report. submitted comprehen-
sive scheme Of tax revision.
Revision of taxes should be effected
Mr.. Houston wrote congress. There
should he better distribution or the
tax burden. Unwisc taxes should be
eliminated But any scheme which
would. after this fiscal year. yield for
several years to come, less than four
billions Of dollars, would be incompati-
hle with safety and sound finance. And
the country should face the fact that
present taxes even may not In the
future be relied upon to yield the needed
revenue"
Apaiust Excess Profits Tax.
The secretary OF the treasury said the
.xccss profits tax should be repealed.
and must, of course, be replaced. ne
said nc believed it should be replaced
In large part by some 1orm "l coFpoIa
tiun profit tax.
Reductions Of the higher groupe Of
income surtaxcs accompanied by In
creoses in the lowDr income surta1 rates
also is suggested by the secretary who
asked that congress consider such
general revision. with reduction 10
maximum rate lower than that con-
tained In the present law provided ac-
ceptable new taxes OF equal yle!d can
be found"
The secretary said the plain fact was
was that the present rates, which are
as high as 20 per cent. could not be sue
sstully collected. and that the eHec-
tive way to tax the rich is to adopt
rates that do not force investment IN
tax exempt securities.
Sources Of Revenue.
Mr.. Houston suggests number or
sources of revenue which could DC
tapped. and others which could be re-
yised to make up for the loss OIL rev.
enue occasioned by the changes in the
taxes which he recommended. Thcsc
sources were outlined as follows:
tax at 20 per cent OIL corporation
profits. distributed or undistributed, In
addition to application of 4 higher sur
tax rate TO yield $500. 100000.
An additional tax Of i per cent on cor
pora ton incomes to yield $465,OO0,00O:
adjustment of surtax rates on In
comes TO yield an additional s23O,o0o.-
900.
allowed corporations on income TO ycio
$58.000.
An Increase from the present per
cent to six per cent in the tax on In
comes of $1,000 or less and from per
cent to IL per cent in the tax on IN
comes between $4,000 and $4,000 tho
whole estimated to yield s15O,94o,OOO
annually.
A tax Of two cents a gallon on gas
oiine for motor cars and all other pur-
rcses, Ia yield $40. 100000. ...., .....
An additional sales tax on automo-
blies (other than trucks and wagons)
and motorcycles and motor car acces-
sories to yield 500. 100000.
. 4 ten. per cent additional tax on thea
tFLssl sSmIisaSPz as Z aa
on cigars. 10 yield $7o,oQo.oQo.
An additional, tax OF Is cents per
thousand on cigars, to yield S5,0O0.oOO.
An additional tax of 6 cents per pound
on tobacco ana snur. to yield $4,000, ,Ooo:
An additional taN Of per cent on
candy. 10 yield s2O.O00.000.
An additional tax Of per cent on
chewing gum. to yield s2.Oo0.Oo0.
An additional tnX of rer cent on toll
let sonp and toilet-soap powders, 10
yield $4.0n0.00o.
A 10 per cent tax on the sole oy man
ufacturers, producers or importers or
perfumcs. cosmetics and medicinal ar
(continued on Page Ten)