TREASURY TAX RECOMMENDATIONS

If Congress adopts the recommendations drafted by the Treasury officials and placed before Secretary Houston for his approval, the country will face a continuation of the annual tax bill of four billion dollars.

It is commonly thought that the election results show that the people are unanimous that our national expenses should be reduced. But the same people also seem ignorantly to expect that taxation can be immediately reduced in proportion. Yet, when we know that about eight billion dollars in Victory notes, war savings stamps, and treasury certificates of indebtedness will fall due in the next three years, it is plain that we must continue a policy of heavy taxation. Besides our regular national expenses, then, we must meet this added war burden.

Yet it would seem wise that the methods should be made more simple. A system a corporation must pay several hundred thousand dollars to find out what its taxes are is purely a great waste. It is understood that Secretary Houston will recommend to Congress in his annual report in December the abolishment of the excess profits taxes in their entirely and the substitution therefor of a higher graduated income tax than under the present laws. Simplicity, and case of collection are imperative for the success of any tax system.

Recent financial reports of the English government show a considerable surplus over expenditures with which to reduce the national debt. It is for us to do the Fame: to reduce expenditures and to maintain heavy taxation to pay off our debts as they come due. The present recommendations of the Treasury Department bid fair to do this, if the people can only be made to realize the situation.