The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-09
4 BILLIONS YEAR
INCOME UNTIL 1923
URGED HOUSTON
Report to Congress Asks for
Revision of Taxes to
Raise Enough Funds
to Meet Debts.
AGAINST PROFITS LEVY
Suggests an Assessment on
Corporations Surplus as
a Partial Substitute
for Present Plan.
ALL INCOMES ALSO HIT
Candy, Tobacco, Gasolene, Au-
tomobiles Among Other
Things Named-Action
Expected.
ALL INCOMES ALSO HIT
Special Despatch TO THE New YORK HEEALp.
New York Herald Bureau.
IKaa [

Special Despatch TO THE NEW YORK HERALD
New York Herald Bureau.
Washington, ID. c., Dec. ..
Secretary of the Treasury Houston
recommended to-day in his annual re-
port to Congress on the national
finances that the existing laws on
taxation be revised so as to yield
$4,000, ,000, 900 revenue annually ito the
end at least of the fiscal year 1929"
| Mr.. Houston recommended also re-
peal of the excess profits tax, read
| justment of rates in higher income tax
groups, and elimination OF a few
luxury taxes, notably that on soft
drinks, which has proved hard to col
lect and comparatively unproductive.
He proposed large increases in taxes
on corporation profits. raising the tax
levy on incomes up TO $4,000 by per
cent. and increasing by = per cent. in
comes between $4,000 and $4,000. In
creased taxes on most Injuries also
were urged. The revised and new
taxes were estimated to yield $4,000
600 900.
The report is to be acted on at the
present session of Congress without
waiting for the special session that
Senator Harding is expected to call
after his Inauguration as President.
In explaining his plan for revision
without reduction of revenues" Mr..
Houston said in his reports
While 1t is highly desirable that the
tax law should be revised at the earliest
possible date, IT Is Imperative. in my
| opinionS tDat the revenue from taxation
be maintained, ,safter this fiscal year on
level OF not %As than $4,000. 900. 900 q
year to the end at least OF the fiscal
year 1923. The internal revenue re-
ceipts may not greatly exceed $4,000
900 900. even in the fiscal year 1921. on
the basis of existing law.
1--WE now have floating debt (taI
and loan certificates maturing within
twelve months) of approximately
$3.50. 100000. This short time debt
should not be funded but should be re-
tired. il possible. by the end of the
fiscal year 1922. On January I. 1928.
war savings certificates now amounting
TO about ssOo.00o.00O fall due. and on
May 20. 1923. Victory notes now
amounting to about s4.250. 0.0Oo. 900 ma
| ture.
"rhe retirement OF the tax and loan
certificates. the reduction OF the volume
Of obligations maturing in 1929. to some
| extent by the operations OF the sinking
fund and the successful refunding OF
the balance OF these obligations const-
tute a colossal task, to the accomplish
ment OF which the whole financial policy
of the Government must be shaped
With obligations OF approximately ST.
SOC. 900 900 maturing In the next two
and half years II would be unwise, un-
less compelled by the severest form OF
Industrial depression. to plan for aggre-
gate tax receipts after this fiscal year
and till at least the end of the fiscal
year 1923, of less than four billions a
year. But this OF course does not mean
that the public will have 20 pay as
large tax amount in the aggregate IN
that period as In the current or the pre-
ceding financial year"
Making Up Excess PROFIT. Gap.
In proposing this programme TO Con-
gress Mr.. Houston named the new taxes
whereby he hopes to compensate for the
abolition OF tho excess profits tax. but
In so doing said: "I shall not attempt TO
discuss them" but that ''thcse possible
sources of income are mentioned for the
information OF Congress" Mr. Houstons
possible sources OF income" are as fol-
lows:
A tax Of cents n gallon on gssolens.
whether for automobiles or other pur-
poses yielding $4,000. 900.
A Federal license tax OF 50 cents for
each horsepower on automobiles yield
ing 100000, 900.
sales tax on motor vehicles other
than trucks and wagons, motorcycles and
motor car accessories. yielding 100000
600.
A 10 per cent additional tax on thea
tire tickets and admissions. yielding tTo.-
900, 900.
Additional tar OF 80 thousand on
cigarettes. yielding t7o.ooo.o 900.
Additional tax OF 25 cents a thousand
on cigars. yielding s5.ooo.ooo.
Additional tax OF cents pound on
tobacco and snufr, yielding $4,000. 600.
Additional taS OF 5 per cent on candy.
yielding s20.0oo,ooo.
Additional tax Of per cent. on chew
ing gum, yielding s20o0.ooo.
Additional tax Of per cent on tofles
soap and toilet soap powders, yielding
80. 900 900.
Ten per cent tax on sale BY rnanufac-
turers, producers or importers o. per-
fumes cosmetics and medicinal articles
instead OF present tax on consumer
yielding sfO.000.oOo.
Additional per cont or ievclry ana
precious nctais yielding s25.O00.ooO.
Additional tax % . per cent on must
cal instruments. yielding s1s,oo0.ooo.
Additional tar OF per cent on mo.
don picture Aims. yielding s4.00o.ooa
C,onssrning the luxurx taxcss or u