The Dawson news. (Dawson, Ga.) 1889-current, 1921-03-22
BILLION ANO HALF DROP
. IN j. S. TAX PAYMENTS
TREASURY OFFICIALS DIS
COURAGED BY THRINKAGE
SHOWN BY RETURNS.
FEAR REDUCTION BE GREATER

Individual and Corporate incomes ARE
Heavily Reduced. Officials Plainly
Surprised at the Extent of Slump.
Must Find New Source of Taxes.
WASHINGTON, D. C.-Income
and corporation tax returns, thus far
received by the bureau of internal rev.
enue and as so far analysed, indicate
that the income of the government
for the current year will be enormous
~ reduced.
Surprised by Reports.
Although treasury officials, from
their own knowledge of business con-
ditions during the greater part of the
wear 1920, were led to expect some
pronounced reduction in federal re-
ceipts they were not prepared for the
contraction which is shown in the fig
ures now in hand.
In official quarters today it was stat
ed that the returns from internal taxa
ton this year, based, of course, upon
last years business, will fall at least
ST, 500,000,000 below the returns of
1920, as based upon the business done
in 1919
Some discouraged officials would
not be surprised if the reduction is
even greater than $1,500,000,000.
Big Slump in Profits.
1t is shown by the returns which
the officials have had the opportunity
to examine that profits not only have
shrunk in virtually all lines of business
but that in some lines no profits at all
have been reported and therefore, no
taxes can be collected.
Also it is indicated that dividends
which were running high in 1919 were
passed in hundreds of cases in 1920.
In most all other cases dividends have
been reduced, although in a few es-
tablished businesses the old rate was
maintained through the past year even
where it was necessary to cut down
surplus accounts.
Individual incomes taken by and
large are much smaller than in 1919,
it is indicated by the returns This is
due in part to the fact that corporate
earnings have been cut down, which,
in turn has reacted upon dividends,
some of which have been withheld en-
tirely and others reduced.
Decrease in Wages Also.
Wage earners also are reporting
smaller incomes for 1920 than for the
preceding year. Although the govern
ment income from wages has not been
proportionately large it will fall off
to such an extent this year, it is esti-
mated now, as to make a considerable
hole in the treasury figures.
Salaried men, for the most part, have
been affected less during the past
year by business depression than any
other single class, but it is indicated
that the government will get much
less money from that source than in
1920
Treasury officials are candidly
alarmed over the revenue prospect for
the current year. They make no secret
of that fact in their private converse
tons If the total government income
is cut down by $1,500000,000, or even
81 900 ,000,0 900, it will be with great diff
fcuty that they will find the money
with which to meet the governments
expenses.
Appropriation Total High.
Until July lst the federal outlays
are fixed on the basis OF appropriations
made nearly year ago. After July
the outlays will be based upon appro-
priation bills passed by the last con-
gress and the bills which have to be
passed during the coming extra ses-
sion. The appropriations for the COM
ing year are not materially less than
those for the year which will end
July lst.
Although appropriations are made
for fiscal years, taxes are levied for
calendar years. The money which the
government will receive from taxation
during the calendar year 1921 is mon
ey which was made by the taxpayers
in the year 1920
Under existing law the taxpayer
may pay his 1920 taxes in four quar-
terly installmentS, the first installment
to be due by April LIST.
Majority of Returns in.
Most of the 1920 returns are in pos
session of the government. The great
err part OF them still are on file with
the local internal revenue collectors,
but. reports based upon those so far
| filed have been received in sufficient
number by the treasury department
to indicate that the federal income will
be cut from 80 to 40 per cent this
| year.
| Even though congress finds new
sources of taxation and enacts a new
taxation law within the next few
months, the revenue which would be
provided for would not be collected
until the latter part of this year. The
treasury must have a reasonable time
in which to put into effect any new
revenue act.
1t is calculated by treasury experts
that tax returns under the new enact
ment will not be made until some time
in 1922, no matter how soon congress
may find it possible to deal with the
question.