The evening world., 1920-12-10

suggestion LilAL tue report De care
fully read
HOUSTON SAYS HIS PLAN RE.
DUcES TAXES.
Instead of proposing an increase IN
taxes. Mr.. Houston insists that he has
recommended reduction in the total
amount that the American people
should pay. For instance. the people
paid an aggregate of $4,000, 100000 the
year before last, and something more
than $4,000, ,OOO 900 last year Now
they are asked 10 pay in the neighbor-
hood OF $4,000, 900.
The Secretary of the Treasury pru-
ceeded on the theory that on account
OF the slump in business conditions
there would not be enough money
available Tor the Government through
the excess profits taxes. But he didn't
suggest that the excess profits taxes
be repealed and nothing put in their
place.
Mr., Houston proposes that the sub
burden on all classes Of business
namely, that corporations alone shall
not be taxed but that partnerships
sole proprietors and other concerns
that are not legally incorporated shall
participate in the tax programme, 10
that the amount taken from business
as a whole shall be approximately
the same as before.
/ As for the consumption, tax. Mr..
/ Houston points out that we already
have taxes on wearing apparel, soft
! drinks and other articles consumed in
everyday life. His recommendation
/ are that some OF these be abolished
and certain others taxed more.
PRESENT RATES MAY NOT PRO-
,oucE ENOUGH CASH.
The point Is that II Congress accepts
the proposed budget OF $4,OOO,O00, 900
the painful fact is that existing tax
laws may not be sufficient in view OF
business conditions to yield that sum
even though the same laws have in
the past yielded S5,OOo.OOO,OOO and
5000, ,OOO,O 600 in two different years.
So Mr.. Houston felt 1t to be his duty
to list all the various ways by which
revenue could he raised.
The fact that complaint has come
from some " NJ interests which
would be affected by some of these
suggestions Is the inevitable result
OF mentioning them. Nobody wants
10 have an increase in taxes. and OF
course members Of Congress will be
pressed by local interests to protcSt
against any taxes tha' put a burden
on the influential business men in
their respective communities.
SO, II the tax question Is viewed
through local eyes, the Treasury De
partment will be under constant
bombardment not only under this Ad-
mlnistratiOn but the next one as
well. II the question Is examined
through national cycs, the tota
amount paid by the American peo.
: pie will be seen as less than any
previous year.
Is SA,oOOOOOoOO the minimum
amount on which the Government ear
get along? Republican leaders say
they can knock $1,000, 900. 900 out o'
The cstimatcs submitted by the Treas
!. ury for the coming year But IN,
a Treasury calls attention, as did Presi'
l. dent Wilson, to the Congressional
" habit OF making appropriations out ol
revolving funds. More than $1,000,
100000 was spent last year in tha
a way after the estimates had beer
> pared down by 81 900, 600. 900. Probably
= the adoption Of a budget system an,
= the making OF all appropriations di
= rect'y will cure this fault In Govern
|, ment finance, but until II comes Con
greAs may be in the position OF takinJ
$1,000, 100000 off a list OF paper esti
mates and OF finding the same billion
eventually on a list Of expenditures
I. 40 rrni rnllnR Rrnr,n AnrnAlnn a. III