Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-20
DE6REASE IN TAXES
NOPE Of MONDELL
TORNEXT SESSION
Repeal of Excess Profits
\ Measure Would Shift
= Burden, He Says.

sEabstantial reduction of the tax
p41erst burdens" is held out as pros
p4Gbf House Leader Mondell during
thedShert session of Congress which
mk4tsofs December and of the ne"
CSHgfess which comes in March TINS
encpuraging outlook was taken by the
republican leader in a statement is
sued last night.
The administrations proposal for re-
peal of the excess profits tax does not
win the approval of Representative
Mondel!. He contends that such actlon
at this time would mean shifting
of burdens from large incomes ana
profits to the small and normal IN
comes and profits"
No Reduction for Year.
The republican leader in his state
ment made no prediction as to when
the lower taxes would become enec-
tive, but said reductions would not be
possible until after the close OF the
fiscal year which begins next month
The proposed changes in the tax
laws also were not revealed by Mr.
M0ndell.
No hope for a return to pre-war
expenditures and appropriations was
expressed by the republican leader.
although he predicted that for the
fiscal year beginning July 1. 1921.
reduction OF upward of billion
dollars would be effected, making
the annual government expenses ap-
proximately $3.50. 100000. Fewer gov
erBment employees and smaller ap-
preparations for the Army and Navy
were cited by Mr.. Mondell as posi-
bilities for reductions after July l,
1921.
Grievances to Exceed Expenses.
Mr.. Mondell estimated that for the
fiscal year beginning next month gov
p9nses by at least $1,O46.6O4,720, I'M
leS1 unusual expenditures not con-
templated by Congress in the recent
session. when $4.373,395,2S0 was pro-
vided for the years expenses In de-
termining the surplus, Mr.. Mondell
said he accepted the most conserva-
tive estimate Of revenues made by the
Treasury, or total of s5.420, 000, 900.
The unbonded war debt was placed
at $3,250, 100000 by Mr.. Mondell. who
said it was continual menace,
but when reduced by the anticipated
within reaching distance of reduc-
tons of the burdens of taxation
Sees Cut in Pay Roll.
In explaining where he sees the OPP
poftunity for reductions in the future,
LARGELY through cutting superfiuous
employees off the government pay roll.
Representative Mondell says:
I'VE cannot expect reductions in
the expenditures on behalf of the
widows and dependents, or those for
pensions for the soldiers of other
wars, and we cannot look forward to
reduction in the interest charge on
the national debt until the present
Arrangement Of the Treasury with
ohan nil n RI
w&shall begin to receive interest on
thu. sums they owe US. The appro-
priations for the sinking fund must
OUntinue. In my opinion there can
be q very considerable reduction in
the total appropriations for the ma
tional defense in the fiscal year lsZs.
and by that time We shall be entirely
relieved, let us hope, of appropria-
tiops on account of federal operation
and control of transportation sys-
teids. We shall also be able to make
considerable saving by the furtner
reduction of the number of federal
employees. The principal reductions IN
authorizations for the immediate
future must come, therefore, from re-
lief from expenditures growing out OF
government railway operation ana
from a reduction of the cost or our
defense establishments. Our appro-
priations for the civil and construc-
tive activities of the government Will
somewhat increase rather than de-
crease, so that balancing the probaole
increases with the probable decreases
we may hope that as we nave reouceo
the appropriations for 1921 below the
estimated expenditures for 1871 py
approximately $1,15o.ooo.ooo; we may
be able to further reduce the appao.
prfations and expenditures for lSzz
below those of 1921 by upward OF
billion dollars"