Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-12-08
WOULD CUT OUT
LUXURY TAXES
IN SOME CASES
Additional Taxes on Num-
Der of Articles Asked to
Make Up Loss. 49,.
SINKING FUND is
PUT TO GOOD USE
Large Amount of Cash is
Loaned to Foreign Ma
tons, Says Houston.

of the war to the American govern
ment was fixed by Secretary Houston
today at $24,010.000.0 900. This, he
said, represented the adjusted" ex-
penditure of the treasury. excluding
all other outlay which had no rela-
tion to the actual prosecution of the
war during the period from April 8.
1917. to June 80, last. which he said
covered the extremes of the govern
,nent's wartime fiscal operations.
Total expenditures by the govern
cepting only postal disbursements
from postal revenues, were $3S,830,-
812,S95, treasury figures showed. OF
this amount $16,07S.S44.Se7 was OBJ
tanned in taxes and revenue from
sources other than borrowed money.
Mr.. Houston said a reduction of $9,-
523,0O0,000. the amount loaned to for
eign governments. should be made
from the grand total since these loans
will be repaid and consequently can
not be charged as an actual expendi-
ture. ~ tsFt
The secretary made other deduc-
tions aggregating approximately $4,-
5O0,000,000 which he said represented
the excess of cost of actual govern
mental operations for the three years
and three months over what they
would have been in normal times.
III Washington, Dec. S.-Immediate
revision of the nations tax laws on
the basis of, an annual levy Of fouc
billions of dollars for q period Of four
ysaEs sna ,nflaaIas n incresss nc ,soos q
UP TO $5 900 Is urged by Secretary
Houston in his annual report sent to-
day to congress-
Repeal of the excess profits taxes,
elimination of certain of the so-called
luxury taxes, including the levy on
soda fountain and similar beverages,
and readjustment of the rates in the
higher groups of income taxes. is pro-
posed by the treasury chief. To meet
the losses brought about by these
proposed changes, Mr.. Houston rec
ommends, revised and new taxes to
yield about $4,000. 000, 900, as follows:
A tax of 20 per cent on corporation
profits, distributed or undistributed
in addition to application of higher
surtax rate to yield $690,00O,000.
An additional tax of per cent on
corporation incomes to yield $465,.
100000.
Readjustment of surtax rates on in.
900.
Adjustment of the $4,000 exemp.
ton allowed corporations on incons
to yield $5S,000.
An increase from the present 4 pei
cent to per cent in the tax on in
comes of $4,000 or less and from
per cent to IL per cent in the tax or
incomes between $1,000 and $4,000
the whole estimated to yield $3.50,
$4,000 annually.
A tax of cents a gallon on gaso
line for motor cars and all other pur.
poses. to yield $90,000,000.
A federal license tax of SO cents PEI
horsepower on the use of motor car!
to yield 800, 100000.
An additional sales tax on auto
mobiles (other than trucks ant
wagons) and motorcycles and motor
car accessories to yield Sl0O,OOO,0 600.
ten per cent additional tax OF
theatrical admissions to yield $40,
100000. la
An additional tax on 50 per thou
sand on cigarettes to yield $4,000,
An additional tax of Is cents pc
thousand on cigars to yield $4,000,
900.
An, additional tax of 6 cents pc
pound. on tobacco and snuff to yielt
!, $4,000
An additional tax Of per cent o,
candy to yield $20,000,000.
An additional tax Of per cent ol
chewing gum to yield $4,000, 900.
An additional tax Of z per cent Of
toilet soap and toilet-soap powders t.
yield ;$4,000,000.
A 10 per cent tax on the sale b.
manufacturers, producers or import
ers OF perfumes. cosmetics and medi
cinal articles in lieu of the present ia:
on the consumer to yield 10000.
900. /,
An additional fivc per cent tax o.
jewclry and precious metals to yiel'
$25,o00.o00.
An additional tax OF per cent o.
5 musical instruments to yield $13,
\ 100000.
t7 An additional tax of per cent o.
motion picture films to yield $4,000.
600.
Surtaxes.
In the rsadjustment of surtaxes Mi
Houston proposes the division of In
Z comes into saved" or reinvested an
..spent." On the former class h
If would limit the highest tax to 20 pc
cent, while the income spent would b
l subjected to q tax ranging as high a
a 80 per cent. Under the plan propoe
II ed by the secretary, incomes betwee
5000 and $4,000. would be taxed
sls;f -. = 3S n 49,