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Show N REDUCTION ! 1928 !I!E TUXES Secretary Houston Says Lower Rate Would be Manifestly Unsafe WASHINGTON. March 17. Any re duction of Income and excess pronis taxes to be collected in the calendar vears 1920 and 1921 would be "manifestly "mani-festly unsafe" Secretary Houston de-, clarcd in a letter today to the house; ways and means committee. Simpli-' ficalion of th.:se taxes was urged, how-, ever. j Unless action is taken at the pres- out session of congress, Mr. Houston : said, these taxos "must be continued to be collected on tho basis of the pres-j ent law until the close of the calendar calen-dar year 1922." He added that he could" not "contemplate such delay without the gravest apprehension." For the simplification of the taxes, with a resultant "modest reduction," tho secretary first recommended en-, actment of an amendment authorising I the internal revenue bureau to make a final determination and settlement of, any tax claim or assessment which shall thereafter be re-opened or modi-j fied by tho government except on a; showing of fraud. Tho particular importance im-portance of this change, the secretary said, was if the present levies continue nnd all hack taxes along with the current cur-rent taxes aro collected In tho samoi vear "the result may bo highly dlsas-i trous to business in case of industrial indus-trial depression. Other recommendations included! -.-i--. r . tnrwuvin nnrl nrnfil liiXieilSlUH i-ii nil niuwmu ....v. t f tax laws p the five-year clause con-, tained only in 191$ law for bringing suits for collection of tnxes. Exemptions on tho Liberty bond Is- ' sues so as to strengthen the market' standing ot those securities. j Extraordinary income as corapensa-j tlon from personal service and gains; from sales or dealings in property for. a period of years be deemed to i:avo; 'accrued or been received ratably Jur-i imr the years in which the sonic was reiHlPied or the property hold, and Ihe amount ot extraordinary Income so assigned as-signed io any one year be subj.-tl to th surtax rates prescribed hy law for that year. ' Provision for simplification and fundamental fun-damental modification or repeal of the exrers profits tax at the oaiiies; pos- slble future date. j Mr. Houston said' tho change In or be made now and urged substitution 'ill of ji flat tax on profits in excessof illH the distributed earnings instead ot tho liH P IlVrugBCBtcd that this flat rato bo I III 25 per cent for 1921, 20 per cent Ihr . 192: and 15 per cent for 1923, skiing 'H it would raise virtually as much is the IH present excess profits taxes. BH |