The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1920-11-12
PRESENT TAXES TO
CONTINUE IN FORCE
FOUR BILLION DOLLARS NEEDED
ANNUALLY TO MEET OBI.
CATIONS OF NATION
NO REDUCTION FOR 3 YEARS
recommendations to be included by
Mr.. Houston Will Include Adolf.
ton Of Excess Profits Taxes
In Their Entirety

In Their Entirety
Washington. Nov. S-The nation will
tNce continuation Of the annual tax
bill Of four billion dollars for Il period
Of at least three years if congress
adopts recommendations drafted by
treasury department officials. and
which, 1t Is understood. have been laid
before Secretary Houston for approval.
Mr.. Houston. it was said. probably
will include such recommendations in
the form Of an analysis Of the govern
ment's financial condition in his forth
coming annual report to congress. The
analysis will show and accompanying
recommendations will suggest. it was
said. that Il three-year program for
tax revision is required in order to
meet maturing government obligations
and cover current federal expenses and
that approximately SSOOO.OOO.OOO in
victory notes. war savings securities
and treasury certificates of indebted
ness will be due for payment within
the next three years. treasury figures
show. Retention of the present axgre-
gate level of taxes. or maintenance Of
the annual revenue If the government
at about $4,000. 100000 then is held to
be unavoidable on the face Of average
expenditures estimated for the period.
Recommendations to be made by Mr..
Houston. it is understood. will propose
adjustment of the excess profits
taxes in their entirety and the substi.
tuition therefor of graduated income
tax Of n substantially deeper cut than
under present revenue laws. 1t was
believed the new income taxes would
apply only to incomes above 5000 an
nually and that provision would be
made for graduated increase even on
the additional tax rs the amount Of
income grows larger.
The secretary is expected to advise
congress that the stricteSt economy in
federal appropriations is necessary If
he program outlined on the basis of
$4,000. 100000 tax bill is to be accom-
plished. He has said that there was
no way to estimate with any degree
Of accuracy what even the present law
would yield in revenue because of the
rapidly changing conditions in bust
ness as a result of after-the-war tran
sition and adjustment. Mr.. Hous-
toms view of this was said TO he that
tax receipts would he materially lower
later in the present fiscal year which
ends June 80 1921. and that there
fore the government income under the
present revenue laws could not be TAX
EN- as Il basis for calculating future
receipts.
This attitude which is held also by
practically all treasury officials having
to do With tax collections. forecasts Il
task Of great difficulty for the trainers
will insist strongly on legislation
which would produce four billions for
the next year. but the ways and means
of getting it will be left to congress.
except for suggestions contained in the
treasury's report. In fact. the tax law
trainers will be informed that there is
no alternative to voting revenue act
that will produce the required amount.
The program for handling the ma
tional debt can he accomplished only
through annual revenue of $4.o0O.OO0.-
900. treasury officials hold With the
victory notes maturing in 1923 and the
war savings securities falling due in
the interim and until 1924. it was de-
clared a possibility that the $4,000 O,-
600 tax level might have to be con-
tinued even until the latter date.
Treasury views are expected to clash
with those Of the Republican majority
in congress on questions of ways and
means of obtaining the needed reve-
nues. But with the changing admin
istration it was understood the pres
ent regime at the treasury would mere
~ suggest and offer little argument in
support of their state for repeal Of the
excess profits taxes and requirements
Of the amounts SO gained by higher in
come taxes.
1t was expected that 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 customs.
acceding to the treasury'S argument
for wipjng the profits tax provisions
off the statute books.
The treasury is committed to con-
Of the sale of savings securi-
ties. Although amounts thus obtained
are small they help materially in re-
lieving current burdens of demand
MANILA CHINESE TO