The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-12-09
REVISE TAX LAWS
PEACE BASIS AT
ONCE HOUSTON
Secretary of Treasury
Finds Existing Laws In
efficient and Burden
some; Asks Sweeping
Changes.

ANNNAAANNAON 1NNs Ns-lAl-
mediate revision OF tho nations laws
on thu basis OF an annual law OF four
hilllons Of dollars for a period of four
years, n including an increase OF
two per cent In the taxes on incomes
up to $1,000, u urged by Secretary
Houston IN his annual report sent to-
day to congress.
Repeal OF the excess profits taxes,
elimination OF certain OF the Ho-call-
od luxury taxes. Including the levy
on soda fountain and similar bcver-
ages. and a readjustmcnt OF the rates
IN the higher GROUP OF Income taxes,
Is proposed BY h treasury chief. To
meet the losses brought about by
these proposed changes. Mr.. Houston
recommends revised AID new taxes
20 yield about $4,000. 100000 as fol-
lows:
A tax Of 20 per cent on corporation
profits, distributed or un~distributed.
In addition to application Of a higher.
surtax rate to yield S690.00O.O00.
Ar additional tax Of 6 per rem on
corporation Incomes to yield $685.
600, 600.
Reimbursement OF surtax rates on in
comes to yield an additional $780,
100000.
Adjustment OF the $4,000 ex-
omption allowed corporations on in
come TO yield $4,000. 600.
An increase from nj present 4 per.
cent 10 8 per cent In the tax on in
comes OF 5000 or less and from 8
per cent 10 ~ per cent IN the tax or
Incomes between $4,000 and 10000.
the whole estimated to yield $780,
sac. 1000 annually.
A tax OF two ccdts a gallon on
gasoline for motor cars and all other
purposes, TO Yield $40, 0OO, goo.
A federal license las OF SO cents
per horsepower on the use OF motor
cars TO Yield 500, 100000.
An additional anles tax on antomo-
biles (other than trucks and wagons)
and motorcycles and motor car ac-
~cessories to yield 100000 900.
A ten per cent additional tax on
theatrical admisHions 20 yield 500
600. coo.
An additional tax Of 81 per thou
sand on cigarettes 10 Yield S~70.o00,-
coo.
thousand on cigars TO Yield $4,000
o0o.
An additional tax Of 6 cents Dcr-
pound on tobacco an1 snun to yield
$4,000. 900.
An additional tax OF 8 per cent on
candy to Yield $40, o geo.
An additional tax Of z per cont on.
chewing gum 10 yield $4,000. 600.
An additional tax OF Z per cent on
toilet soap and toilet-soap powders
20 yield 81. 900. 000.
A 10 per cent tax on the sale ny
manufacturers, producers or import
crs OF perfumes. cosmetics and medi.
clnal articles In lieu OF The presen;
tax on the consumer to yield SiO,-
coo. 900.
An additional five per cent tax on.
IUnunIrE uUH nrafInru U4afu1n ~ gluIl
&25, 0oO, 900.
An additional tax OF 6 per cent ON
mpeical Instruments 10 yield $4,000
An additional tax OF 6 per cen on
motion picture films to yield $4,000.
600.
IN the reimbursement Of snrtaxes,
Nj. Houston proposes the division OF
incomes into saved" or ~reinvested
"a spent On the former class he
would limit the highest tax 60 20 per
cent while the income spent would.
he subjected TO a tax ranging - high.
IS so per cen Under the plan pro-
posed by the secretary. incomes be-
tween $4,000 and $4,000 would be
taxed 2 per cen on the part saved
and the anne on the part spent. The
same ratio with q graduated increase
would apply to incomes up TO 100000
where the maximum Of 20 per cent
ON saved income Is reached From
1000 10 10000, lae rates would
be 20 per cent on saved and 20 per
cert on spent; $4,000 TO $4,000. 20
per cent and 80 per cent; $4,000 10
S16, geo. 70 per cent and 36 per cent;
$4,000 10 100000. 20 per cent and
20 per cent. ana over 500, 900, %
nor cent and 50 per cent or a total
tax Of 70 per cent.
Tbs repeal OF the tax on soda foun-
lain n otl1or beverages IL aslted. the
rrCreiEry haya. betauae the collection
uf the tax. the aggregate OF which is
small, has presented an administra-
tive problem a mQ6nitude. Added TO
fhnt. Mr.. Houston says, there has
Anen constant and widespread evasion
o. anch iaEea.
ENoess Profits Tax Faiiure,
me excess profits tax. Mr.. Houston
f~rclnren' has not Fulfilled the theoret-
teal grounds upon which It was en-
H4lea and ime been feuna 20 ho
FuIit both 81 theory and Ii polliioai
IHIIaHqnhy. He SAYS Il dlacrlninated
laifAI he -ronhdfvatlvray finauced
corporation while eifire mqicrlally