Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-11-08
4 BILLIONS YEARLY
NEEDED FOR DEBTS,
HOUSTON Warned
Treasury Officials Lay
Draft of Report Before
Department Chief.
SUGGEST ELIMINATION OF
TAX ON EXCESS PROFITS
Would Substitute Graduated
Revenue Measure Affecting
Incomes Over $4,000.
3.IEAR PROGRAM NEEDED
Present Administration Will Merely
Suggest Course Of Action and
Not Attempt to Force Views.
SUGGEST ELIMINATION OF
TAX ON EXCESS PROFITS
a.YEAR PROGRAM NEEDED
Present Administration VIII Merely
Suggest Course OF Action and
Not Attempt to Force Views.
tBy Associated Press. ]

WASHINGTON, Nov. 7.-Thc ma
;!on Will face n continuation of the
annual tax bill of $4,000, .00e for a
rcr!od OF At least three years If Con-
Srnss adopts recommendations draft
81 by Treasury officials and which, Il
vas understood tonight. have been
la!d before Secretary Houston 70.
approval.
Mr.. Houston, II was stated. prob.
aoly will include such recommends :
lions In the form Of an analysis of
The governments financial condition
N his Forthcoming annual report TO
Congress. The analysis will SHOW.
and accompanying recommendations
VII suggest. IL was said. that "a
ihrcc-ycar program for tax revision
- required In order to meet Inatur.
ing government obligation and cover
current Federal expcnscs.
approximately $4,000, ,OOo. 900 in Vic
tory notes. war savings securities
:tmd Treasury certificates of indebted :
l.ss will be due for payment with
IN the next three years. Treasury ag-
ur.s show. Retention Of the present
Iggregate level OF taxes. or main.
t.nancc OF the annual revenue of the
government at about $4,000, 900. 900
tb'n il held TO be unavoidable on the
iace OF average expenditures csti-
,D"tcd FOR the period.
Incrcnse Income Tax.
Recommendations to be made py
>l.. Houston Il ia understood. will
propose aboiishincnt of tile excess
pront taxes in their entirety and the
substitution therefor OF gradual
cd income tax OF substantially
deeper cut than under present roy
cnuc laws. II was believed tho new
income taxes would apply 10 incomes
above $4,000 annually and that pro-
vision would be made for gradual
cd increase even on the additional
tax as the amount Of income grows
iarscr.
The secretary is expected 20 ad-
N.se Congress that the strictest econ
my in Federal appropriations is nee
o'issry ~ the PROGRAM outlined on
III" oas!. OF $4,000. 100000 tax
Dli q 10 be accomplished He ha.
aid that there was no way to cst!-
mate with any degree OF accuracy
what even the present laws would
y!cld in revenue because of the rap
iGly changing conditions In business
as n result of after-thc- war trnnsi-
,,on and readjustment. Mr. Houston's
vi.w OF this was said TO be that tax
iNceipts would be materially lower
later in the present fiscal year. which
ends June 80. 1921. and that there
fore the government income under
,iic present revenue laws could not be
taken as basis for calculating fu-
tare receipts.
This attitude. which is held also by
practically all Treasury officials hav-
ing TO do with tax collections. fore
caste a task OF great difficulty for
the trainers OF the new revenue act
The Treas sury will insist strongly on
legislation which would produce four
billions for the next year, but the
ways and means OF getting 1t will be
left TO Congress except for the sug-
Gcstions contained in the Trcasury's
report In fact. the tax law trainers
will be Informed that there is no
alternative to voting a revenue act
that viii produce the required
amount.
Four Billion Necessary.
The program for handling tho ma
tional debt and its payment Is ohliSa-
tory--can be accomplished only
through annual revenue of $4,000. .000,-
roo. Treasury officials hold. With tine
Victory notes maturing in 1923. and
the war savings securities falling
due in the interim and until 1924, II
was declared n possibility that the
$4,000. 100000 tax level might have 70
be continued even until the latter
h.Ifn ,,fa
10 clash with those Of the Republican
majority in Congress on questions of
ways and means OF obtaining the
needed revenues. But with the chang
ing administration, It was under
stood, the present regime at the
Treasury would merely suggest and
offer little argument In support of
their stand for repeal Of the excess
profits taxes and replacement OF the
amounts so gained by higher income
taxes
IL was expected tariff questions
would be brought into the discussion
and that those in charge Of tax legis-
lation might seek to Offset some of
the deficit by higher duties and Gus
toms. acccding TO the Treasury's
agreement for wipinH the profits tax
provisions off the statute book.
Continue Sale OF Securities.
The Treasury is committed to a
continuation OF the sale OF savings
securities. Although amounts thus
obtained are small. they help ma
icrially in Selieving current burdens
of demand on the Treasury by spread
ing out the maturing dates, accord
ing to officials. This feature Of the
financial status OF tho government
Continued on Second PaGc.)
$3.50 Special Excursion Baltimore re-