The Washington times., 1920-12-08
ny w. II. ATKINS,
International News Service.

International News Service.
Tax changes that will better dis
tribute the tax burden but not reduce
Government revenues were recon-
mended to Congress today by Secrs-
tary Of the Treasury David F. Hous-
ton. The revised tax program, out
lined by the Secretary. strikes at the
rich who escape liability In tax-free
securities, or in over-capitalized cor.
porations. His proposals aim to
eQualize the tax burden Of partner
ships. through a more severe applica-
ton of tax penalties upon tbs wsaithy
who cloak their profits In stock divi-
dends" which are non-taxable.
The need of the hour. demanding
Immediate action by Congress. Mr..
Houston said, Is the repeal OF the ex.
cess profits taxes, readjustment OF
surtaxes. and the adoption of some
form of sales or Consumption" taxes
upon certain luxuries.
Proposed revision, he urged. must
be made to keep the level of Govern
ment revenues up to at least $4,000
0o0.o 900 through the fiscal year 1928,
and possibly q longer period.
Reduction of taxes" he secuted ms
an utter impossibility, not compatible
with national security. He even hints
even be sufficient to meet the demands
of the future.
Revision of taxes should be ef-
fected," he said. There can and
should be better distribution of the
tax burden. Unwise taxes should ee
eliminated.
Low TAX Is DANGEROUS.
"But any scheme which would after
this year yield for several years TO
come less than S4.000.000,000 a year
would be Incompatible with safety
and sound finance.
And the country should face the
fact that present taxes even may not
in the future be relied upon to yield
the needed revenue"
Due regard for the protection Of the
Treasury imposes upon Congress the
duty to seek out new sources OF tax
revenue for the next two years,
Secretary Houston said, and to re-
place losses which may come from the
| revisions recommended he urges that
part of the burden must be borne by
| ''wasteful but non-taxpaying classes
through luxury taxes. He opposes
general sales taxes upon necessaries
widespread use.
SHIFT $4,000, 900. 900 LOAD.
Shifting of about $4,000, 900, 600 OF
the tax burden from the shoulders OF
| those least able to bear II, and relief
for the general public through put
ting a check upon multiplying costs
now possible under the excess profits
Is contemplated as the most bene
ficial effect to the average consumer
Secretary Houston believes readjust-
NJ l-l 49,
load for the wage-earner, who now
pays in indirect fashion many profits
Although the aggregate tax load will
be as high, It's reapportionment will
fall less heavily upon the wage earn.
ing public, in the Secretaries opinion
The three main tax proposals out
lined and the remedies suggested In
detail by Secretary Houston to the
Congress, are:
l. Excess profits tax should be re-
placed in large part by some form
kof corporation profts tax. This Is
based upon Government needs and
upon grounds of equality.
$50 long ~ taxpayers, other thar
corporations nrc subject to . pro-
srrssive Income tax rising now 70
over per cent. corporstion prcn'
should not he allowed 20 escape with
| a single tax Of only 10 per cent?
When the excess profits tax Ia re.
pealed some equivalent or compensa
tory tax should be placed upon the
corporations in lieu Of the surtas
upon re-invested income paid by other
taxpayers, he said.
EXCESS PROFITS SUBSTITUTE.
"one partial substitute for the ex'
cess profits tax would be tax on
undistributed profits OF corporations
as nearly as possible equal to the sur
tax imposed upon the saved income OF
the Individual. II individuals dolng
business in partnership pay 20 per
cent on undlstributed prof1ts, individ
uals doing business as corporation,
should pay 20 per cent
Mr. Houston urged that IL an un-
(ContInucd on Para 4 Column ~