Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-12-08
By Associated Press.

81
Washington, Dec. s.-Immediate
revision of the nations tax laws or
the basis OF an annual levy of -four
billions Of dollars for period Of four
years. and including an increase of :
per cent in thextaxes on incomes UP
to 50 900, is<urged by Secretary Hous.
ton in his annual report sent today to
congress.
s. Repeal OF excess profits taxes,
eliminati on OF certain of the so-called
luxury taxes, including the levy on
( soda fountain and similar beverages,
and a readiiistnlent of the rates in
the higher groups Of income taxes,
is proposed by the treasury chief. To
meet the, losses brought about by
these proposed changes, Mr.. Houston
recommends revised and new taxes
/ to yield about $4,000, ,oJSS0O as fol-
lows:
a tax Of 20 per cent on corporation
profits. distributed or undistributed
IN addition to application of a high
ler surtax rate to yield $500, 900, 900.
An additional tax of per cent on
corporation incomes to yield $780,
600. 900.
Readjustment of surtax rates on
incomes to yield an additional $780,
100000.
Adjustment Of the $4,000 exemp-
lion allowed corporations on income
to yield $5s,OO0, 900.
increase from the present per
cent to s per cent in the tax on in
comes OF $4,000 or less and from 8
per cent to 12 per cent in the tax on
Incomes between $1,000 and 900,
the whole estimated to yield $780,
Z $40. 900 annually.
tax OF two cents gallon on
gasoiene for motor cars and all other
: purposes, to yield 500 900, 900.
A federal license tax of so cents
per horsepower on the use Of motor
cars to yield 100000, 900.
An additional sales tax on automo-
ssbiles (other than trucks, and wagons)
and motorcycles and motor car ac-
cessories to yield 500, ,0O0, 900.
= ten Trer cent additional tax on
lel-llicai es.ficai duin1ss-eas TO yield $70,-
100000.
An additional tex of 81 per thou
sand on cigarets To yield $4,000 900.
An additional = cents per thou
sand on cigars to yield s5,O0O,OO0.
An additional tax of cents per
pound ON tobacco and snuff to yield
$6,000,000
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 s2,oOo,Oo0.
An additional tax of Z per cent on
toilet soap and toilet-soap powders
to yield $4,000, 600.
A 10 per cent tax on the sale by
manufacturers, producers or import
ers of perfumes. cosmetics and me-
dicinal articles in lieu Of the present
tax on the consumer to yield s1O,-
000, 900.
An additional five per cent tax on
jewelry and precious metals to yield
s25, 1000, GOO.
An additional tax of 5 per cent on
musical instruments to yield s13,0O0,-
600.
An additional tax of per cent on
motion picture films to yield $4,000
ooo. iYti
lndueement to Saving
In the readjustment of surtaxes.
Mr.. Houston proposes the division of
incomes into Saved" or reinvested
and spent On the former class he
would limit the highest tax 20 per
cent. while the income spent would
be subjected to a tax ranging as high
as 80 per cent. Under the plan pro-
posed by the secretary, incomes be-
tween $4,000 and $4,000 would be
taxed per cent on the part saved
and the same on the part spent. The
same ratio with a graduated increase
would apply to incomes up to 30,Oo0
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 % per cent
on spent; $4,000 to $4,000. 20 per
cent and 80 per cent; $4,000 to $75.-