Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-11-08

annual revenue of the government at
about four billion dollars then 10 held to
be unavoidable on the face Of average
expenditures estimated for the period.
Recommendation to be made by Mr..
Houston, it is understood, will propose
abolishment Of the excess profits taxes
in their entirety and the substitution
therefor OF graduated income tax Of
substantially deeper cut than under pres
ent revenue laws. 1t was believed the
new income taxes would apply only to
incomes above 5000 annually and that
provision would be made for graduated
increase even on the additional tar az the
amount of income grows larger.
The secretary is expected to advise
congress that the strictest economy in
federal appropriations is necessary If
the program outlined on the basis of
four billion dollar tax bill Is to be ar
complished. He has said that there
was no way to estimate with any de-
gree of accuracy what even the present
law would yield IN revenue because If
the rapidly changing conditions in bisl-
ness As a result OF after the war transi-
ton and readinstmeut.
Facing Difficult Job
Mr.. Houstons view of this was said
to be that tax receipts would be mater
ally lower later in the present fiscal
year which ends June 80. 1921, and that
therefore the government income under
the present revenue laws could not he
taken as basis for calculating future
receipts.
This attitude, which is held also by
all treasury officials having
to do with tax collections. forecasts a
task OF great difficulty for the trainers
OF the new revenue act. The treasury
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 the
suggestions contained in the treesury's
report In fact the tax law trainers
VIII ee informed that there is no alter
native to voting a revenue act that will
produce the required amount.
Needed to Handle Debt
The program for handling the nation
al debt can be accomplished only through
revenue of $4.O00. .0OO. 600. treas
ury officials hold. With the Victory notes
maturing in 1923 and the war savings
securities falling due in the interim and
lntil 1924. it was declared. a possibility
mat the four billion dollar tax level
might have TO be continued even until
the latter date.
- AoaSais views are expected to clash
With those OF the Republican majority
n questions of ways and means Of Oh
aiming the needed revenues. But with
he changing administration, il WAS un-
ierstood the present regime at the treas
Try would merely suggest and offer lit
lie argument IN support of their stand
or repeal of the excess profits taxes and
'eplacements of the amounts so gained
~ higher income taxes.
May Discuss Tariff.
1t was expected that tariff questions
would he brought into the discussion
md that those in charge of tax lelsla-
ion might seek to offset some of the
lefict by higher duties and customs, ar
'eding TO the treasurys arguments for
viping the profits tax provisions off the
tatute books.
Ihe treasury is committed to con
inuaton of the sale of savings secur-
ties. Although amounts thus obtained
re small they help materially in reliev-
ng current burdens Of demand on the
reasury. This feature of the financial
tatus of the government also viii have
o be considered in the next tax laws
ince officials believe it offers one road
or the distribution of small amounts of
he tax burden over several additional
ears. 1t was said to he only a means
t deferring payment, but after the Vic
ory notes have been retired, securities
N which the payments have thus been
eterred can he better handled,
Short Term Financing.
Meanwhile. the treasury will carry on
s announced program of short term fin
ncing. issuing certificates of indebted
ess to meet current requirements in an
icipatson of quarterly payment of in
ONE and profits taxes. Ii was said that
he certificate issues probably would
ontiDue on bi-monthly basis until con-
ress indicated what it with do in tax
egislation.
Award Victory Medal