OCR Text |
Show LOWER TAX LEVEL NOT DUE FOR THREE YEARS NATIONAL TREASURY OFFICIALS OFFIC-IALS MAKE STATEMENT. Secretary Will Make Suggestions For Raising Money Exow Profits Tax To Go Now Tax to Put Heavier Burden On Largo Incomes Tariff Question May Cut Figure. WASHINGTON, I). C, Nov. 7. Tho nation will face h continuation of Ihe animal (nx bill of H00(),'XMM(l() I fur a )iriol of at least Ihree years if eoiwrees adopt recommendations I lrHflMt liy treasury officials, and J which, it is understood tonight, have Iweti laid hefore Secretary Houston t for approval. Hottalon, prolmldy will include such recommendations in the I form of an aimlyaia of the govern- I inent's financial rejwrt (o congress. I The anaelysis will show, and aceoni- llMHyinK recommendations will sug- llPMt thai a Hires-year program for tax revision is mprired in order to J inert maturing fcoveriimenl oldijra- j lions mih! wiver mrretit federal ex- I HM. That aiiroxiHMtl 98,0M),- i 000,000 in victory twlen, wa savinffs teettrilies and treasury pertirieal of indktpdniM will lw due for tay- metil wilhin lite h1 three years, treasury figures Ihiw. Itetenlio"n of I llie renl agirrirate level of (axes, I or maintenance of the annual revenue of th govemmetit at altout W.WM),- i (MK),(XM), then is held lo lw tmawridalilt! I on the faco of averago extetHlittira I entl.liated for the teriMl. I Heeommendationa lo Itc ma do liy Secrciar)' Houston, will inMHM i oboliahmrat of the excess profit taxes l in their entirety and the suhstitttim therefore of a government income tax 'of a snlmtsnlially detier cut than I under present revenue laws. It was lielieveil the new Ineonw taxes would aitly only lo lutmcs slnive I60IMI 1 annually and that jHwlsiou would lie ( made for a graduated increase even i on the additional lax as the amount of ! incflino grows larger. j The nerrelary is exiweled lo advise etingresa that the strilctest eeouoiuy in federal aprpriatiomi is neeewr' it the program outlined on llie ImsIs ! of a fl,(Hl(,(Xli),(XH) lux Mil is lo lie no- complished. Ho has said thst there nan no wax to estimate with Hiiy Igree of accuracy wlmt even tho pres jent lawn would Nicltl In revenue le- cmiim ot the rnjildly clinojfinK oondt- ' tlotis In InwinwM as n result of i-fler- i the-wnr Iraiislliun nud readjust uient. 1 Houston's view of this Is that tux re- 1 reijits would he mnlerinlly lower later in the prwM'iit fiscal year, which ends 'I June 30, 1021, and that, therefore, the gtiverniueiit incomu tiudor the i present revenue laws could not lie taken as a I main for calculating fit- l ture rweiptn. I This attitude, which itaUmld also li.v practically nil treasury offloinU Imv-iiiK Imv-iiiK to do with tax rollcetioiM, fore-pants fore-pants a tack of great difficulty for the f ranters of the new rexenuo net. Tlit treasury will insisl slronsly on legis-lnlion legis-lnlion winch would produce $1,0(10,. ; (hhi.ihmi lr lite next three yours, liul the vwn ' mid ineiuis of gelling it will loft in congress, oxcept fbr iho bur gostions contained in the treasury's rcorU In fnct, tho tnx lnw frnmcrs will bo informed Hint thcro is no nllornntivo lo Voting n revenue, net that will produce tho required amount. Tho program for handling iho nn-Honnl nn-Honnl debt enn bo accomplished only through nnnunl revcntio of $1,000.-000,000, $1,000.-000,000, trensurj' officials hoM. Willi the vlclory notes mnturing in 1023 and the war savings securities falling due in iho interim and until 1024, it was declared n Kssib!lity Hint the 1,000,000,000 tax level might have to be continued even until tho latter dsle. Treasury views are exited to clash with those of the republican majority in congress on questions of ways and means of obtaining the needed revenues. Hut with the changing administration it was understood under-stood Ibe present regime nt the treasury treas-ury would merely suggest and offer little argument in support of (heir stand for rejieal of the excess profit laxea and reiilaeement of Ihe amount so gained by higher income (axes. It was e'xperfed that tariff question ques-tion would be brought into the d!t cnssioii and that lliose in charge of lax legislation might seek lo offset some of the deficit by higher duties and customs, according to the treasury's treas-ury's argument for wiping the profit tax provisions off the statute books. The treasury is committed to n continuation of the sale of saving securities. Although amounts thus obtained are small, I hey help materially ma-terially in reli'fring current burdens of demand on Ihe treasury. This feature fea-ture of Ihe financial status of Ihe government also will have lo be considered con-sidered in Ihe next lax laws since officials of-ficials believe it offers one road for Ihe distribution of small amounts for the lax burden over several additional yeans. It was said to lie the only means of deferring jmyment, but after Ibe victory notes hnve been retired, re-tired, securities on which Ihe payments pay-ments have tbHs lieen deferred can lie taller handled. Meanwhile Ihe treasury will earry mi its announced program of short-lerm short-lerm financing, hutting ertlfleitles of indebtedness lo meet current r-qniremenls r-qniremenls in anticiatlon of quarterly quar-terly imvmenl of Income profit taxe. It was said thst Ihe certificate issues proliably would continue on a bl-monlhlv bl-monlhlv ImsIs until congress indicates what it will do in the way of tax legislation. |