The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-08-03
SECRETARY MELLON
TALKS OF TAXATION
SUGGESTS THAT LEVY BE MADE
ON BANK CHECKS, INcREAS-
ED POSTAGE, FLAT RATE FOR
u AUTOMOBILES AND TOBACCO.
OTHER SUGGESTIONS.

tax of $40 on all automobiles, ire
spective of cost or horsepower, an in
crease of first class postage rates to
three cents and an added levy on
cigars, tobacco and cigarettes are un-
derstood to. have been among tax re-
vision suggestions presented today by
Secretary Mellon to the House ways
and means committee, meeting In
executive session.
Other suggestions were said to
hays included:
A reduction of SO per cent in trans
portation taxes, both passenger and
freight, next year and their elimina-
tion the year following. @
Repeal of the taxes on soda foun-
tain drinks and ice cream.
Repeal of the excess profits tax and
elimination of the $4,000 exemption
on corporations incomes. "A
Increase of the normal income tax
on corporations from the present 10
per cent to Is per cent.
Elimination of the income surtax
brackets above 40 per cent with the
surtax rates on incomes ranging from
$4,000 to $4,000 increased.
+ The revenue bill as revised in ac-
cord with these suggestions would be
designated to raise approximately
four billions of dollars next year, it
was said. Mr.. Melons memorandum
embodying his views was withheld,
but Chairman Fordney pormised to
make it public tomorrow.
Representative: Garner, Of Texas,
ranking Democrat member of the
committee, attacked the Treasury
Secretary's proposals, declaring that
every one Of them constituted a
shifting of the tax burden from the
classes to the masses" j
Mr.. Mellon was said to have esti-
mated government expenditures for
next year at s4,675,0O0,oO0, but
Chairman Fordney said this was de-
pendent upon how much Of the $780,
100000 due the. railroads would have
to be advanced out of the Federal
Treasury, the cost Of operating the
government merchant fleet and the
size of expenditures for the army and
the navy.
Aside from internal taxes, the
Treasury Secretary was understood to
have estimated customs receipts for
next year at $45O,OOO,o 900 and mis-
cellaneous receipts, including salvage
at $3.50, 100000. He was said to have
figured that the $40 license tax On
automobiles would bring in s100, ,00e-
600 and that added levy on cigars, to-
bacco and cigarettes an additional
$25,oo0,00o. Increased postal rates
have been estimated to yield another
s75,o00,000 but the estimate as to
the income from the proposed tax on
bank checks was not disclosed.
The loss Of revenue through reduc-
ton of the transportation taxes has
been placed at approximately $780,
100000.
After the committee had heard Mr..
Mellon, Internal Bevenue Commits
sionex Blair, DE-. T: IS. Adams, Treas
sury5 tax experts and d:iotheS fiscal Off.
GERS of the governments Chairman
Fordney reiterated his statement Of
last Saturday that he believed the ma
TONS tax bill could be cut $500,O0O,-
900 and the government run for four
billion dollars a-year.
Representative Garner said that
government expenditures in excess
Of that sum next year would be a
"wilful, wicked waste of public funds,
wholly indefensible. He asserted
that the Federal establishment could
be run for $3,5oo,O00 adding that
Representative Madden of Illinois, the
new chairman of the appropriations
committee had declared in an address
that this sum should be sufficient.
Before the committee heard the
Treasury experts, the Republican
members were in conference with Mr.