The New York herald., 1921-08-12
Secretary Urges Congress
to Repeal Standing I'm
expended Balances.
HOUSE DEBATES REVENUE
Democrats Charge White
House Plans Represent
Paper Savings
Special Despatch to THE NEW YoRK HERALD.
New York Herald Bureau,
Washington. ID. c.. Aug. IL j

New York Herald Bureau.
Washington. ID. G.. Aug. ii
Legislation to expedite the collection
of nearly $1,000, 100000 in back taxes
was approved by Republican members
of the House Ways and Means Com
mittee to-day for insertion in the rev.
enue revision bill, which Is expected
to come before the House next week.
An agreement has been reached by
House leaders with Secretary of the
Treasury Mellon to make concerted
drives during the coming fiscal year to
speed up the collection of these taxes
in order to make sure that the tax
reductions desired by Congress will
leave sufficient revenue to meet the
reduced expenses.
The Secretary In another letter to
the House Ways and Means Committee
to-day on the Government fiscal situa-
ton urged that Congress force greater
economy in Government departments by
specifically repeating various outstand-
ing unexpended balances and authorize
tons which some agencies are planning
TO spend this ysar.
Mr.. Mellon warned that the $3.50 0o0,0 900
reduction in estimated departmental ex-
penditures agreed upon at the White
House conference last Tuesday could be
accomplished only in that way.
ITO accomplish this reduction" Mr..
Mellon wrote, "it will be necessary for
the Administration, with the assistance
OF the Director of the Bureau of the
Budget to pu. forth it's utmost efforts
It~xy< ant
activity, and for Congress on its part
to give the most whole hearted cooper
alton, not only by avoidance of new ex-
penditures, but also by the limitation or
repeal of various outstanding balances
and authorizations.
Maximum Of Receipts.
II cannot too strongly emphasize that
the programme agreed upon and outlined
In this letter depends upon the reduc-
tions In expenditure which the Admins
tration expects to accomplish, and that
the anticipated savings can be effected
oiiy by the most consistent and de-
termined efforts to cut expenditure.
The estimate OF receipts. on the other
hand, represents the utmost expected
to accrue during the year. particularly
in view OF the uncertainties resulting
from the depression in business and the
The ak question got into House debate
to-day. Democratic leaders attacking the
programme with charges that only the
wealthy would benefit by most of the
proposed changes in the revenue law and
that the curtailmenc in departmental ex-
penditures for this fiscal year agreed
upon at the White House conference
would prove merely paper savings"
Republican leaders replied with the
declaration that the new law would
lift $500. 900. 900 off the people yearly
and launched a counter attack against
the Democrats for leaving over to this
Administration what were described as
unnecessary burdens growing out Of the
war. including payments to the rail-
roads.
Expedite Overdue Collections.
The new legislation that Is expected
to expedite back tax collections gives
the Secretary OF the Treasury power to
adjust these cases with the taxpayers.
Such a plan has been recommended by
Treasury officials. both Republican and
Democratic. for the last three years.
With court procedure slow and interest
accommodating on these back taxes
against the taxpayers 1t is believed that
large amount additional can be
brought In through satisfactory "out of
court" adjustments. Under present pro-
cedure the Treasury experts examine
returns and then demand the back taxes
n ev believe necessary.
If the taxpayers contest the amount
virtually the only recourse Is to tie the
cases UP In the courts for a long time, or
by prolonged hearings before the Bureau
of Internal Revenue. II Is believed in
many cases that small compromises
can be made which viii result in the
immediate influx into the Treasury of
hundreds OF millions sorely needed at
the present time.
Another plan for the expedition or
back tax collections Is to increase the
number of collection districts so as to
relieve the present almost overwhelm-
ing buri ems on some offices. Secretary
Mellon will recommend that at least ten
more offices be created and it Is be-
lieved this plan will be adopted.