Every evening, Wilmington daily commercial., 1920-12-08
REPEAL OF EXCESS
PROFITS TAX URGED
BY Sec. HOUSTON
Treasury Head Declares it a Fail
ure and Wrong in Prin-
ciple.
ASKS ANNUAL LEVY
OF FOUR BILLIONS S
by Associated Press to Every Evening

by Associated Press to Every Evening
Washington, December S.-Immedi-
the revision Of the nntion'a tax laws on
the basis Of an annual levy of four bill
tions of dollars for period Of four years,
and including an increase of two per cent
in the taxes on incomes up 10 50 900, is
urged by Secretary Houston in his annual
report sent today 10 Congress.
Repeal Of the excess profits taxes,
elimination Of certain Of the so-called lux
ury taxes, including the levy on soda
fountain and similar beverages, and n
readiustn1ent of the rates in the higher
groups of income taxes, rs proposed by
the Treasury chief To meet the losses
brought about by these proposed changes,
Mr.. Houston recommends revised and
new taxes 10 yield about $1,000, 600 900
NJ follows
A tax OF 20 per cent on corporation
profits, distributed or undistributed in
addition to application of higher sur
tax rate IN yield 5000, ,oO0oo0
An additional tax Of q per cent on cor
poration incomes 10 yield si65 .OG0, ,OC0
Readjustment of surtax rates on incomes
10 Weld mn additional 1890. .OC0. 900
Abolishment of the 5000 exemption
allowed corporntlons on income 70 yield
s5s. 900
An increase from the present per cent
10 six per cent in the tax on incomes
OF $4,000 or loss and from 8 per cent n
IL per cent IN the tax on incomes between
s., 600 and $4,000, the whole estimated
to Weld si50,ai0 900 annually.
A tax Of two cents a gallon on gsso-
lin. for motor cars and ell other purDoses
To yield sa0,OD0,O00
A federal license tar of 80 cents per
horsepower on the Use Of motor cars n
Weld siOn. 900. 600
An additional sales tar on automobiles
tother than trucks and wagons and motor
cycles and motor car accessories 10 yield
800 600 900
A ten per cent additional tax on theat-
rical admissions % yield $4,000 900
An additional tax Of 81 per thousand
on cigarettes 10 Yield $40. 900, 600,
An additional tax of 25 cents per thou
sand on cigars 70 yield 5000 600
An additional tax OF cents per pound
on tobacco and snuff 20 yield 81, 900, 600
An additions tax of > per cent on candy
20 yield s20,O00,OO0
An additional tax Of 7 per cent on chew.
ing gum to yield 100000.
An additional tar Of per cent on toilet
soap and toilet soap powders 70 yield
81, 100000.
A 10 per cent tax on the sale by manu-
facturers, producers or importers Of per.
/ fumes, cosmetics and medicinal articles in
| lieu OF the present tax on the consumer &C
yield $4,000, 900
An additional FIVE per cent tax or
iewelry and precious metals 10 yield
s25, ,00O,0oc
An additional tax Of per cent on musl-
cal instruments 10 yield 100000
An additional tax of per cent on mo-
ton pictures films to yield 100000
In the resdjustment of surtaxes, Mr.
Houston proposes the division Of incomes
/ into saved or 'reinveste cd and spent
On the former class he would limit tins
/ highest tax TO 20 per cent while the in.
come spent would be subjected 70 a tax
/ ranging as high as so per cent. Under the
plan proposed by the Secretary, incomes
i between $4,000 and Sc, 900 would be taxed
! . per cent on the part saved and the same
! on the part spent. The same tito with 8
graduated increase would apply To in
comes up 10 $50. 900, where the maximum
] of 20 per cent on saved income IS reached
! From $4,000 to $4,000 the rates would
| be 20 per cent on saved and 25 per cent on
/ spent, $40, 900 70 $50. 900, 20 per cent anC
| 80 per cent; $4,000 to $4,000, 20 per
/ cent and 35 per cent; S75, 900 to 500, 600,
/ 20 per cent and 40 per cent, and over
! Sl00, 900, 20 per cent and so per cent or q
total tax of 20 per cent.
The present maximum rate Is 20 pei
cent on incomes of 81 1,000, 900, but Mr.
Houston declares it has long passed th'
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