The New York herald., 1921-08-07
EXCESS PROFITS TAX
MAY REMAIN A WHILE
Majority Of House Commit
fee Fayors Proposal to
Delay Repeal.
II. s. NEEDS THE MONEY
Shrinkage OF S330,O00, 900
Is Seen in Revenues of
Government.
NO HOPE IN LEVY ON BEER
Total Income Is Placed at
S3,79O,0OO,O0O, Against Out
go of S4,554,OOO,000.
NO HOPE IN LEVY ON BEER
Special Despatch 70 THE NEW York HERALD.
New York Herald Bureau,
xEa.b.r0fan n An (

Special Despatch 70 THE NEW York HERALD.
New York Herald Bureau,
Washington, ID. c., Aug. g.
A majority of the Ways and Means
Committee Of the House is behind the
proposal to postpone repeal of the ex-
cess profits tax and reduction of sur
tax levies until January next. That
was disclosed by canvass to-day.
Virtually all the Democrats who are
opposing the repeal OF the excess
profits tax stated they would support
the new plan IN preference to an i'm
mediate change OF these levies. More
than half OF the Republicans believe
Congress would have to accept this
method on account OF the financial
needs Of the Government as disclosed
by Secretary Mellon.
Treasury experts, it was learned to-
day, have informed the Ways and
Means Committee that IL the new tax
law is not passed before December l,
which now seems to be a likely date for
Its final enactment. 1t will be almost
impossible TO prepare new regulations
and forms SO that the 1921 returns and
and profits taxes could be made on
htsrch L. The Commissioner Of Inter
nal Revenues office has stated that the
law should be passed now IL the
changes are to be put into effect
smoothly.
House Republican leaders plan to ask
President Harding on his return TO
make every effort to reduce Secretary
Melons estimate OF S4,500.0 900 for
Federal expenses during the current
year Meanwhile plans are under way
to expedite passage of the bill giving
the Secretary Of the Treasury power to
refund foreign loans, In the hope that
some large interest payments will be
made during the year.
An estimated shrinkage In Govern
ment revenues for the present year or
ss30. .o00 900 Is disclosed in the state
ments of Mr. Mellon TO the Ways and
Means Committee on April 80 and on
August A. or this amount s200,o00,0oo
Is accounted for by a reduction OF from
S225, ,O26. 900 to s25026.00o as the prob
able interest payments of the Allies
during the coming year. No reason for
this reduction has been given. The
balance Of the decline is in internal
revenue The total revenues for this
year, as given by the Secretary on
August 4. were s4.217.643.000. as
against s4.547.643,00 900 on April 80.
There is little probability that the
wets can induce the drys in Congress
TO legalize 2.75 per cent beer and then
tax 1t heavily. although the tax re-
vision problem would now be much
easier were II not for prohibition. The
dry majo rity in the House at least. Is
adamant against all such proposals.
Chairman Fordney said to-day that
the rewriting of levy provisions in the
1918 law probably would begin Monday
and that unless an unexpected snag was
encountered the new bill should be
ready within ten days. Leaders gene
rally say House consideration viii re-
quire only a few days.
Tt was estimated to-day that imme-
diate repeal of the whole transporta-
tion tax the soda water tax and the
higher surtaxes, together with the
s55.Oo0.000 which the Treasury experts
figure will be lost this fiscal year
through repeal OF the excess profits
axes as Of last January / would APP
)roximate the half billion dollar cut
rhich Republican leaders in the House
Insist can be made in the tax levy.
With such a reduction. the taxes to be