New-York tribune., 1920-12-06
Fordnev Aims
TO Cut Taxes
s6O0,O00,OOO
Total Will BE Increased to
S1.25O.OOO,0OO if the
Bonus Bill Should Fail
TO Pass Senate. He Saws
Ridicules Houston's Ideas.
Secretary Estimates Read
Like Fairy Tale. He As
serts; Cites Examples
r-c., re rr,su~e, Washington Bureau

P~>~
WASHINGTON, Dec. 5.-Reduct on
:, taxes BY more than $500 600
through r'eid economy and revision Of
the income TAX law along simpler hnes
"a meet the demands of the country
s.s Two of the hle items on the SEIZED
Vie beng outlined for TIE House Ways
snd Means Committee, Chairman Ford
,sv declared to-day.
Chairman Forduey said this estimate
vss based or the expectation that the
solc;e-s' bonus bill would become law
Should ,he bonus bill fsll TO pass the
Senate tne total reduction would te
shout billion and quarter dollars
he said
sor the various governmental denart-
msnts for Tire neN, fiscal year will u
many cases, be nslderably slash.d
Nr Fordney said.
a have just read an advance reYor.
ct the Secretary o re Treasury" said
Nr. Fordnoy. "an6 his estimates Tor
a ;a.rv .sle. They are ridiculouslv
hirh. I can go down the list of esti-
mates and chop OUT billion and
quarter, 1proXimatcly, as unnecessary.
As ar sXample-he wants $1S1 900 600
sor the War Risk Insurance Bureau
| have consulted leaders of the ApLro-
priatiors Committee and We all agree
that Houston estimate is 500 100000
100 high.
10000 Clerks Unnecessary
with the consolidation Of the vari-
ors soldier relief agencies under one
department, we can save another s100.-
0Ou,0C0 and eliminate about 10000
clerks in Washington.
Las. year Sf4.00O.000 was appro-
prated for miscellaneous expenses OF
military posts. This year Secretary
Houston IS asking s71. 100000 under
that item He wants $4,000 900 for
river and harhor improve 'nents
don't think Congress Will srant any
such sum this year
IN commenting on the income tax
'av, NJ Fo7dney said that demands
from every section Of the country
would compel enactment Of legislation
providing simpler law. Included in
his plan for accomplishing this end, is
a fat levy of Is per cent on corpora
ton incomes and elimination OF quail
tying and modifying clauses. Only
committee work on revenue legislation
IS expected at this session
4Id- : NY ptdlI, Saiu chairman
Fordney.' and a corporation won't
have to hire an expert or lawyer to
figure how much II owes the govern
ment. The government should raise
$500 100000 by such tax"
Opposes Consumption Tax
Fordnsy secuted the idea of con-
sumption tax.
~ have thought the matter over"
he said, and a tax OF one-haf OF
per cent upon sales OF all kinds seems
very good one to me. However, |
fsvor having the wholesaler pay these
taxes rather than the retailer The
government to-day hires about $4,000
men who go about the country prying
into books OF retailers to see that the
government gets its due. 1t costs the
government about s3oo0o,0 900 20 main
tan this inspecting army-and they
are pests 10 retailers.
after the Civil War there was a
AK o. eight cents A pound on coffee
imports. Il We taxed coffee FIVE cents
pourd-coffee imports. that is-we
can raise sS5 600 900. If We tax tea
10 cents a pound we can raise from
sio,o00.0o1 to s15,o00.0oO"
TIE supertax on incomes above a
certain amount IS not successful
MONEY ra.ser, said Mr.. Fo-dney.
Il tnd as does the Secretary Of the
Treasury. mat men OF large incomes
are putting their money IN taX-exempt
securities. Hence the government is
noc getting the revenue it expected.
, To remedy this. am in favor Of lower
Ing the graduated superraxes on large
Incomes and increasing by few PEI
cen. the tax on small incomes. l think
TIE government Will find this sue
cessfui way 10 raise the needed reve
RE