The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-09
CnnrIder TnriT First.

Consider I-irtn Ftrst.
Chairman Fordney of the committee
said present plans are TO have the re-
vised tariff bill ready for consideration
in the House before the new revenue
bill He pointed out that the tariff bill
should be brought up first. The tax laws
can be made retroactive. he pointed out,
while It is impossible to do so with
tariff changes.
The committee. according to Mr..
Fordney and other members. has no
definite programme as to either revenue
or tariff changes, believing few con-
ciusions can be reached until the various
interests involved are heard. of course,
plans are to Increase the tariff. The
prevailing opinion among committee
members Is that the Increases cannot be
expected to yield much more than $780,
0O0. 600. as compared with the present
rates of s36O.oO0,oo
As 70. the revenue revision. the COM
mittes next week hopes TO have Sec
retary OF the Treasury Houston explain
these new taxes he suggested in his an
nual report made public to-day. II IL
understood the excess profits tax will
be repealed and that many OF the pres
ent obnoxious petty levies will be elm
mated
The actual framing OF the new tarln
bill viii be started early In the special
session to be called by President-elect
Harding. Mr.. Fordney hopes. IT can
not be passed until late in the summer,
IL is generally agreed. II the revision
OF both tariff and revenue laws can be
accomplished during 1921. Congress viii
have shown exceptional legislative
speed. Mr.. Fordney thinks, because of
the vast amount OF work involved.
Houston,s suggestions Considered.
Many Of the tax suggestions made by
Secretary Houston did not meet with
approval among House committee men,
bers. His proposal for a tax on un-
divided profits of corporations seemed
to be the most popular. but there was
strong opposition apparent to increasing
the normal income tax rates
Tax suggestions made by Mr.. Ford
ney include fiat tax on corporations,
a sales tax and special levies on tea and
coffee. 1T is my DESIRE" he said, that
that a corporation will not have to hire
an expert or a lawyer to figure out how
much II owes the Government. I think
that rates could be adjusted so that. by
fat tax on profits. $1,000 100000 can
be raised.
81 believe tax OF one-half per cent.
on all sales would prove wise and ac-
ceptable one. Also. after the civil war
n tax Of eight cents a pound was placed
on coffee imports. II we should tax
coffee five cents pound the yield
would be $4,000 900. tax Of ten
cents n pound on tea would raise about
$4,000 600" ~
Mr. Fordney asserted the estimates Of
tho Treasury Department were ridicu-
iousiy high and said they must be re-
duced more than s1,oOo.OOO. 200 IL Con-
gress is 10 have any success in tighten
ing tax burdens.
Nine Months Consideration.
In a statement on the tariff hearings
Mr. Fordney said
ut Ia the plan OF the committee 20
conclude hearings and complete neces-
yary printing prior to the adjournment
of the short session on March &. 80 that
actual work On the drafting OF = bill can
bc commenced without delay under the
now Admintstrstion. II fs foregone
conclusion that Mr.. Harding viii call
Congress IN extra session soon after In
auguration. and in the opinion OF the
chairman and committee members the
final enactment OF a tariff measure at
the special session could not be accom-
plished n hearings were to be delayed
until the new Congress convened. To
substantiate this. the chairman pointed
TO the fact that IN 1918 hearings were
commenced November 10 and tho bill
was not finally enacted until August 8
1919. the elapsed time being five days
short OF niro months. In 1918 tariff
hearings we're begun January and tho
bill was enacted October 3. three days
less than nine months being required"