Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-12-09

NtohllNutu roEl fI'Sl aEt
Corporations. are subject 10 a pro-
4 <srSssivc income tax rising now Il
over 30 per cent. corporation profits
shoulG not be allowed 10 escape with
siugc tax of only 10 per cent"
Hn When tnc excess profits tax is re-
realcd some equivalent; or comrcnsa-
tory tax should he placed upon the
corporation IN lieu of the surtaX upon
reinvested income paid by other taN-
PAYERS. he said.
Has kitrruntr rian.
'Dne partial substitute for Tie cN-
- cess profits tax would be tax on
unGIStriDutod profits of corporations
nsucarly as possible equal 20 the sur
tax imposed upon Tho saved income
OF the Individual. II individuals do
Ing business ~ partnership pay "a
}. per cent on undistributcd profits. in
dividuals doing business as corpor
alton should pay taN OF >" per
cent.
Houston urged that If an undiS-
trihuteG profits ;aN he adopted. Con-
/, -Srcss should prohibit; various devices
by which corporations distribute
statutory dividends while actually
retaining their profits IN business. He
urged tAc adviSahility Of recurring
every corporation. % per cent OF
4. Mhcsc stock j. hcld by a single indi-
ridual, 10 be treated as partnership
Must Make Up S:nn0nu.osU.
Losses in revenue through rcpca!
. OF excess profits probably VIII amour;
I 70 S200. 100000 which must DE made
s. W. In new taxes.
.2. Incopc sur;aNcs must undergo
drastic notifications a. they ar. cN-
7 cessive and driving weather taNpay-
crS 10 transfer their Investments III
d. -taN-frec securities. setting ur need
less and dangerous competition with
= industrial ana railroad securities.
with consequent impsdimcnts 20 bus
mess development ana foreign trade
expansion the scCrctar: asserted
The effective way 10 tax the riI
is 10 adopt rates which do not force
7 :rreStment III tax exempt securities
he said
mended to reach a class OF surplus
. income OF taxable capacity but
from which the government derives
no revenue. This proposal IS d"SiGuc,!
10 cover, the Secretary said. "luNur-
ious and wasteful consumption among
those persons who do not ordinarily
pax income tax"
Repeal OF taxes up"m fountain
drinks. ice cream and other similar
articles OF food and drink" imposed
by present revenue laws * recon-
Trcnded. and Congress = urged 20
subs titutc tc1N!cr taxes upon certain
other iuNur!cs. Regarding new rX-
else and luxury taxes, the Secretary
: y-:'It IS not necessary to tax every
luxury. !; * desirable 20 avoid alb
soluie ncccssaries OF lie because
some individuals nave litt.r rr no
waste income 20 IT, tapped either al
rectIy or indirectly"
Present luxury --~7 are poorly de-
fined and uncertain and difficult OF
collection. the Secretary said.
Government finances have shown
~mdrked Improvement" with receipts
FOR the last year slightly exceeding
expenditures. bn, The need for rigid
economy. bo:h public and private, IS
paramount, to cuah,c the nation to
with stand III. deb, strain of the
future. Secretary ~ The Treasury
gross today.
The outstanding feature OF the
TrcaSVrys operations. Houston said,
aside from maturi;icS on tho noatinE
States has balanced its budget, and
'he current operations az the Treas
h H..f, ar now ;,inow."S 4 surplus ;
tn Treasury Toy The fiscal year md
cd Jun" 30 last Houston said. were
So y5.VoNeoo, and after that huge
&. snut."E ihtr, was an adjusted sur
Plus from current receipts Of seal
22i,000 for the fiscal year Govern
p meht receipts for tho first quarter
81 The presen; sca! year we're $I.5ip-
sl.25lo0o,opo, an Excess 6t $2ss,O0o.-
Secretary Houston predicted thut
the second quarter ending Deem
Der 81. next. ana the TWO succeeding.
quarters. VII show substantial eN-
rcSs Of receipts over .Nr.m,iiturrs
lana such excess viii d" applied to
retirement ul Inc floating dvht and
opcratuus OF the sinking fund
~ Tn secretary urged ma, suh.
'"'siart!ui reductions b, made ia In.
estimates OF government appropiia-
lions. r"cc"tiy transmitted by him
70 Congress.
Mr. Houston expressed tn hone
mat IL lie estimates are reduced tn.
hosting d"ot ~ the Egy-rumu, ac-
great NJ >!354pUgupn may be- "a