The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1920-12-02
TAX LAWS TO REMAIN
UNTIL AFTER MARCH 4
Meantime Republicans Make Study Of
Subject and Form Program
For Special Session.

washington, ID. {. - In the opinion
Of Senator Penrose, Chairman of the
Finance Committee, communicated to
senatorial colleagues here and to in
nuential members of the Ways and
Means Committee, no attempt should
be made to repeal the excess profit tax
ramend the revenue laws until the
special sesiosn of Congress, which
President Elect Harding has an
nounced that he will call soon after
March 4.
Senator Penrose said that in his
opinion anything that might be done
by the Republican Congress along
these lines would probably be vetoed
by President Wilson, and, therefore, it
would be waste of time for the Re-
publicans to attempt to carry into eff
feet party policies during the final
months of the Wilson administration.
1T may be wise not only to repeal
the excess profits tax, but to simplify
tax forms for the calendar year 1920"
said Senator Penrose, "but / do not
believe that the consensus of opinion
in Congress would favor undertaking
the repeal Of any taxation schedules
until the Republicans enter into full
control of the Government. l myself
favor simplification of the tax forms
so that the taxpayer can know what
he has to report. l hope that we may
do this before the taxpayers are re-
quired to make the 1920 report"
Senator Pennrose further indicated
that no advantage could be gained by
repeating the excess profits tax at the
coming session, as Congress undoubt-
eddy would not favor repeating the tax
for the calendar year 1920, and there
was sufficient time to repeal it at the
special session, when other features
o fthe revenue Jaw would be consider
ed and general revision might be I'M
dertaken.
There is such demand from bust
ness men for repeal Of the excess
profits tax, supplemented by the rec
concentrations of Treasury officials,
that there is reason to believe that
Congress will not delay action until
the whole subject of tax revision can
be undertaken. 1t is the opinion of
those concerned with taxation matters
that this tax will be repealed early in
the special session so that the tax
need not be collected for 1921. This
must be done in the summer of 1921,
or, according to Secretary Houston, it
will be necessary to collect the tax
for that calendar year.
What Is puzzling the authorities is
how to find a substitute for this tax.
There is no argument against its re-
peal. In the Ways and Means Com
mittee last session, R. C. Leffingwell,
then Assistant Secretary of the Treas
ury, suggested that the income tax
might be increased to provide reve-
nues coming from excess profits. This
view was opposed by the committee,
which was nearly read to accept a
tax on sales and real estate transfers.
Many object to a sales tax.
Another suggestion is to repeal the
profits tax without trying to supply
another source Of revenue to take is
place. In such case the expenditures
Of Government must be reduced to a
minimum. If this is done, 1t is argued
there will be sufficient revenue to
meet ordinary expenses of Govern
ment, but not toredeem the Treasury
certificates and Victory notes in 1923,
amounting in all to about $S,OOO,0OO.
Some financial experts hold that
these obligations should not be re-
deemed, but should be refunded into