The commonwealth. (Greenwood, Miss.) 1896-1923, 1920-12-08
lev Houston Send His
Annual Report To
Congress
EpEAL EXCESS
/ PROFITS TAXES
ecommended By The
| Secretary-Other
Changes Made.
Associated Press

ASSOcldteu IIess
WASHINGTON, Dec. S--Immediate
t;sion Of the nations tax laws on
basis of an annual levy of four
hons of dollars for a period Of four
ay and including an increase OF
i per cent in the taxes on incomes
to $4,000, is urged by Secretary
nuston in his annual report sent to-
n to Congress.
Repeal of the excess profits taxes,
Imination of certain of the so-called
nury taxes, including the levy on
Ia fountain and similar beverages,
"a readjustment of the rates in
4 higher groups of income taxes, is
Oposed by the Treasury chief. To
|eet the losses brought about by
ese proposed changes, Mr.. Houston
commends revised and new taxes to
Ield about $2,O00,O00,000 as follows:
# A tax of 20 per cent on corporation
rofits, distributed or undistributed,
addition to application of higher
5urtax rate to yield s690,000,000.
d An additional tax of 6 per cent on
Corporation incomes to yield $685.
100000.
II Readjustment Of surtax rates on
Incomes to yield additional $230,000,-
|DoO.
n Adjustment of the $4,000 exemp-
lion allowed corporations on income
q yield $4,000.
& An increase from the present q
ter cent to six per cent in tax on in
BONES of $4,000 or less and from 8
Der cent to IL per cent in the tax on
incomes between $1,000 and $4,000,
Ahe whole estimated to yield $780,
100000 annually.
4 A tax of two cents gallon on gas
bline for motor cars and all other
purposes to yield $90,OOO,00O.
\ A federal license tax Of so cents
per horsepower on the use of motor
ears to yield $100,000,000.
An additional sales tax on automo-
zbiles (other than trucks and wagons)
and motorcycles and motor accessor-
|ies to yield $1O0,00O,000.
A ten per cent additional tax on
theatrical admissions to yield $70,0O0,-
|OOO
An additional tax of So per thou
sand on cigarettes to yield $70,OOO,-
|OOO.
An additional tax of 25 cents per
thousand on cigars to yield $5,0O0,-
|OOO.
An additional tax of 5 cents per
pound on tobacco and snuff to yield
|s8,oOO,0OO.
An additional tax Of 5 per cent
on candy to yield $20,000,000.
An additional tax of per cent on
chewing gum to yield 100000.
An additional tax of 7 per cent on
toilet soap and toilet-soap powders tc
yield s4,OOOOOO.
A 10 per cent tax on the sale by
manufacturers, producers or import
ers of perfumes, cosmetics and medi-
einal articles in lieu of the present
tax on the consumer to yield $lO,-
100000.
An additional five per cent tax on
lewelry and precious metals to yield
s25,oOo,0OO.
An additional tax of 5 per cent on
musical instruments to yield $13,OO0,-
900.
An additional tax of S per cent
on motion picture films to yield $4,'
100000.
In the readjustment of surtaxes
Mr.. Houston proposes the division Of
Incomes into saved or reinvested and
spent" On the former class ne
would limit the highest tax to 20 pei
cent while the income spent would
be subjected to tax ranging as higf
as 30 per cent Under the plan pro
posed by the Secretary, incomes be-
tween $4,000 and $4,000 would be
taxed 2 per cent on the part savec
and the same on the part spent. The
same ratio with a graduated increase
would apply to incomes up to S3o,oo'
Where the maximum Of 20 per cen'
on saved and rs per cent on spent
$4,000 to $4,000, 20 per cent anc
80 per cent; $4,000 to $4,000, q
per cent and 35 per cent; $75,ooO Y
100000, 20 per cent and 40 pei
cent, and over 100000, 20 per cen
and 50 per cent or total of 70 per
cent.
The present maximum rate is y
per cent on incomes Of $1,0O0,OOO
but Mr.. Houston declares it has "lons
passed the point Of its minimum pro