The Owosso times., 1920-12-03
WASHINGTON LETTER.
TAX LAWS TO REMAIN
UNTIL AFTER MARCH a
Meantime Republicans Make Study of
Subject and Form Program
For Special Session.


Washington, Dec. LIN the opin-
ion of Senator Penrose, chairman of
the finance committee, communicated
to senatorial colleagues here and to
influence members of the ways and
means committee, no attempt should
be made to repeal the excess profit
tax or amend the revenue laws until
the special session of Congress, which
President-elect Harding has an /.
nounced that he will call soon after
March A.
Senator Penrose said that in his
opinion anything that might be done
by the Republican Congress along
these lines would probably be vetoed
by President Wilson, and, therefore,
it would be waste of time for Re-
publicans to attempt to carry into
effect party policies during the final
months of the Wilson administration.
at may be wise not to repeal the
excess profits tax, but to simplify tax
forms for the calendar year 1920,'
said Senator Penrose, "but do not
believe that the conconsus Of opin-
| ion in Congress would favor under
taking the repeal Of any taxation
schedules until tho Republicans entor
into full control OF the gove"nme t.
| myself favor simplifcation of the
tax forms 80 that the taxpayer can
know what hc has to report. / hope
that we may 90 this before the tax
payers are required to make the
1920 report"
Senator Penrose further indicated
that no advantage could be gained
by repeating the excess profits tax at
the coming session, as Congress un-
doubtedly would not favor repeating
the tax for the calendar year 1920,
and there was sufficient time to re-
peal it at the special session, when
other features Of the revenue law
would be considered and general re-
vision might be undertaken.
There is such a demand from busi-
ness men for repeal of the excess
profits tax, supplemented by the
recommendations of treasury Off
cials, that there is reason to believe
that Congress will not delay action
until the whole subject of tax re-
vision can be undertaken. 1t is the
opinion of those concerned with tax
alton matters that this tax will be re-
pealed early in the special session
so that the tax need not be collected
for 1921. This must be done in the
summer of 1921, or, according to Sec
retary Houston, it will be necessary
to collect the tax for that calendar
year.
What is puzzling the authorities
tax. There is no argument against
it's repeal. In the ways and means
committee last session, R. G. Letting
well, then assistant secretary OF the
treasury, suggested that the income
tax might be increased to provide
revenues coming from excess profits
This view was opposed by the com
mittee, which was nearly ready t.
accept a tax on sales and real estat'
transfers. Many object to a sale
tax.
Another suggestion is to repeal tn
profits tax without trying to suppl
another source of revenue to tax
it's place. In such a case the expendi
lures of government must be reduce
to a minimum. If this is done, it
argued, there will be sufficient rev
enue to meet ordinary expenses o
government, but not to redeem tn
treasury certificates and Victor
notes in 1928, amounting in all
about 5000, 100000.
/: Some financial experts hold ths
these obligations should not be n
deemed, but should be refunded int
long-term bonds and cancelled
fifteen years( when the condition {
the Government will be such as
carry out the transaction without pu
ting such burden on present-ds
taxpayers.
=. Different schools of financiers w
undoubtedly come into conflict wht
the subject of tax revision comes Z,
in Congress. Underlying the diffe
ences, however, is the general agre
ment that the excess profits tax mu
be repealed. The struggle will cor
over whether a substitute tax is ne
essary or whether the present stu
ng ton can be taken care of by exten
ing the period Of Indebtedness matt
ity.
Mr.. and Mrs. William Robertsc