Evening star., 1920-11-22
HOUSTON RAPS TAX
PAYMENT DELAYS
Treasury Head Says Taxes
on 1919 Profits Must Be
Paid-Congress Not to Act.

Department has come out nattooteQ
against postponement Of the pay
ment OF the installment Of the in
come and excess profits taxes due and
an extension Of the met loss'' pro-
visions Of the revenue act December
Is. The postponement has been urged
as a means Of relieving the situation
for merchants and manufacturers.
particularly in the textile business.
who say that the recent shrinkage OF
values has hit them hard and they
do not know how they can pay these
taxes without serious embarrass-
ment.
Members Of Congress in Washing
ton said today that in consequence OF
the announcement of Secretary Hous-
ton. advising against such postpone
gress looking to the relief of these
taxpayers and the law will take its
course.
Huge Demands ON U. 8. Treasury.
AS recently stated. the ways and
means committeeman were awaiting
word from the Secretary of the Treas
ury before proceeding to act upon
the subject, as they felt they could
not go ahead until they were as
sured that remedial legislation would
not interfere with the Treasury De-
partment's financial$p1ans.
Secretary Houston states that be-
tween December 81 and January Is,
one billion of Treasury certificates
mature, while the first semi-annual
payment of interest on the first lib
erty loan will mature December Is,
amounting to $40, 900, 900. These pay
ments must be made out of revenue
from income taxes and the Treasury
must have the money.
In view of the stand taken by the
Secretary of the Treasury, congress-
men say they feel relieved of further
responsibility in the premises and will
not propose legislation over the pro-
test Of the responsible official of the
executive department dealing with the
collection and dispensing of the reve-
nues Of the government.
Secretary Houston's Statement.
Secretary Houston's statement in
full is as follows:
Suggestions have recently come to
the Treasury from various sources,
first, that the payment Of the Decem-
ber 18th installment of income and
profits taxes should be postponed by
amendment of the revenue act of
1918. and. second. that the met loss
provisions of the revenue act be ex-
tended to the year 1890. presumably to
losses during the taxable year 1920
from the net income for the taxable
year 1919. with redetermination of the
1919 taxes accordingly.
'The agitation for these changes in
the law can only do harm and, from
it is important that the situation be
made clear.
"The revenue act provides for the
payment of income and profits taxes
in four quarterly installments due on
March Is. June Is. September Is and
December Is. The taxes due on De-
cember Is. 1920. represent chiefly the
final 1nstallment due In respect to in
come and profits of the taxable year
1919. Taxpayers have already had
nearly twelve months grace as to
this final installment and have had
every opportunity to make provision
for its. payment by setting up the
Treasury certificates. of indebtness.
Vast Sums Needed Soon.
"The Treasury Department, more
over. has adjusted it's financial pro-
gram to the tax payment dates pro-
vided by the revenue act of 1918.
There are outstanding nearly $780,
100000 of certificates maturing on
December Is. 1920, and $300, ,000, 900
additional mature on January 3 and
January Is, 1921. On December Is
there will also become payable the
semi-annual interest on the first lib
erty loan and the victory liberty loan,
aggregating about $4,000 900.
ITO meet these heavy maturities of
principal and interest and at the same
time provide for the current require
ments of the government. enlarged
as they are by the extraordinary bur-
dens imposed upon the Treasury in
connection with payments to the rail-
roads. the Treasury relies chiefly on
the income and profits taxes paya-
BILE on December 10. This instaliment
is not expected to exceed $650,00O.-
900.
'"The Treasury must finance its fur
ther requirements. so far as they are
not covered by ordinary current re-
ceipts. through issues of Treasury
certificates Of Indebtedness. It would
be impossible to defer the payment
of the December installment Of taxes
without forcing the Treasury to offer