The New York herald., 1921-09-10
SS,2OO,OOO,OOO TAX
TOTAL Is Cop. AIM
Senator's Discuss Changes Pro-
posed by Mellon, but Reach
No Agreement.
ACTUAL REVISION TODAY
Democrats Fight Against Ex-
cess Profits and Surtax
Features of Bill.
ACTUAL REVISION TO-DAY

WASHINGTON, Sept. "a minimum
total tax of $4,000, 100000 for this fiscal
year is the aim of the Republican mem
bers of the Senate Finance Committee
in revising the House Tax Bill, Chair
man Penrese said to-day after con-
ference OF majority committeeman.
| This is approximately 100000. 900
| less than Treasury experts figured the
| House measure would yield, but is the
| total that Secretary Mellon has told the
committee will be necessary for the con-
! duct of the Gofernment, provided the
economies in departmental expenditures
agreed upon at the White House con-
| ference last month are effected.
| Neither the whole committee. which
| met this morning, nor the majority
members. who We're in session this af-
ternoon, reached any agreement on
specific revisions proposed yesterday by
Secretary Mellon. There was prolonged
discussion Of some at both sessions, with
the Democratic members launching
their fight against retroactive repeal OF
the excess profits tax, reduction OF the
income surtaxes to 35 per cent and
restoration of the transportation taxes
at half the present rates.
After the meeting of the majority
members Senator Penrose said that,
while the drift OF sentiment among the
Republicans seemed to be in favor of
repeal of the profits tax as of last
January I. the situation was such that
the drift might change in the direction
OF repeal as of next January ! as pro-
vided for in the House measure.
Profits Tax Repeal Attacked.
Senator Simmons of North Carolina,
speaking for the six Democratic MEM
bers of the committee. declared against
retroactive repeal of this tax and char
acterized as "indefepsible" the proposal
Of Secretary Mellon TO reduce the income
surtax rates from SO per cent. to 25
per cent effective January 1. 1922. He
declared the S2 per cent maximum rate
fixed in the House bill was too low.
During the day Senator Hitchcock Of
Nebraska. acting Democratic leader,
issued formal statement attacking the
proposals to repeal the profits tax and
cut the surtax rates. declaring such
action very objectionable" He added
that such incomes as S500,000 or more
were contrary to the public interests"
and should be limited and restricted
by taxation"
Actual revision of the House bill viii
be undertaken tomorrow by the whole
committee, Chairman Penrose said. add
ing that 1t was the plan to take 1t up
section by section, Declaring that there
had been pleasant and harmonious
interchange of views at tine session Of
the majority members Senator Penrose
asserted the indications we're that these
members would vote fairly well to-
gether when we come to final decisions"
While no action was taken to bind those
present, he added, substantial progress
was made in clearing the atmosphere"
sa,2os,4S6,O 700 for Fiscal Year.
Oficlal Treasury figures prepared for
the committee show that with the six
changes recommended yesterday by
Secretary Mellon the House bill would
yield s2.2es, ,455,0 this fiscal year, or
$4,000. 600 less than the House measure
in its present form, and 50, 1855, ,780. 900
for the calendar year 1922, or SOS, $780,
600 less than the House bill.
Losses from the House bill for the
fiscal year would be $250,000, 900, all
through repeal OF the profits tax. and
gains would be 2s4,000,0oo, as follows:
Corporation tax, increase $3.50. SOC, 900 |;
transportation. $65,50o.000; insurance,
S5,000,000. and perfumery, cosmetics and
proprietary medicines s3.000,000.
In the calendar year 1922 the losses
600, S45o,oo0,O0o profits tax and $780,
0c0,o00 capital stock tax. The gains
would be s4i4.500.0 900. as follows: In
creased corporation tax. $267,500. 900 !;
transportation, S131, 100000; insurance.
$1o.o00.000, and perfumery. cosmetics
and proprietary medicines se.000,0oo.