The New York herald., 1921-08-05

Totals. ............. 81 ,33o, ,o4O.oO
first class mail matter and the sug'
gested cent tax. on bank checks. These
taxes, it is estimated, would yield aoou1
| Sill. .000 900 year, or about Sos,ooo,vo,
| for the fiscal year 1922, making grano
total Of s3,993. .500,0 ,000."
| In his estimates OF revenue receipts
given in a table in another column. Mr.
Mellon explained:
| "Note-The revision upon which the
above estimates are based assumes the
following changes
-. 4 new tariff law in effect about
December 81, 1921.
"2 The increase of the corporation
income tax to Is per cent, as OF Jan
uary I, 1921. and the repeal of the
So, 900 exemption.
"3. The repeal of the excess profits
tax. as of January /, 1921.
"A. Increased collections of back In
come and profits taxes s
's5 An increase in the tax on ciga'
rettes and smoking and chewing tobacco
IS. The repeal of the transportation
tax upon freight and passengers; the
| tax 10 be reduced one-half January l.
I1922, and entirely repealed January l.
1923
| az. Certain of the stamp taxes as
carried In title IL of the revenue act OF
1918, to be materially increased.
"s. An annual Federal license taA
upon motor vehicles, averaging about
$40 apiece, and to be graded according
to power.
80. The repeal OF section $40 Of the
revenue act Of 1918, as of January !,
l1922 (the tax on ice cream and foun-
/ tain drinks, &c.).
40. The repeal of miscellaneous
taxes levied under section 9o4 OF the
revenue act OF 1918. as OF January 1
1922.
I'll. A revision Of the income tax
rates with the maximum surtax rate
reduced to so per cent
| "1.-Customs. The estimates or row.
enue under the revised law assume tna'
a more productive tariff law viii oe
adopted, capable Of yielding about $780,.
I 600 900 additional revenue for the hsca
year 1922 and $150.o00.000 additional
| for the fiscal year 1928.
"2.-Individual income tax. The tota
1 ret income subject to the higher surtaS
rates Is rapidly dwindling, and funds
which would otherwise be invested II
nroductive enterprise are being driver
| into fields which do not yield taxable
income The total estimated revenue
\ from the surtaxes under existing law ]:
about $500, 100000 for the taxable yea'
1921. The estimated yield for the veal
from the surtax rates above 81 per cent
would be less than S100.000.000. Th,
Immediate loss In revenue that wouls
result from the repeal Of the higher sur
| tax brackets would be relatively snai
and the ultimate effect should be IN IN
crease In the revenues. 1t Ii suggostet
4 80
! limited to a combined maximum rate no
exceeding 40 per cent for the taxable
year 1921 and 33 per cent. thereafter.
/ am confident that In a short time th
| Treasury would actually collect NOR
under the lower rates than under tn
higher rates II continued.
Approves Excess Repeater.
"3.-Corporation taxes. APPROX
the repeal OF the excess profits tax
which IS rapidly becoming unproductlVe
I suggest as a substitute an increase o
s per cent. in the rate of the corporation
income tax and the repeal of the specih
exemption of $4,000 now accorded =
corporations. This would greatly simpli
4 fy the problem of administration ant
/ collection without substantial loss
revenue.
"4.-Back taxes. Collections of bacl
4 taxes are estimated to yield net abou
s2s5. ooO. 900 in the year 1922. and abou
S335, ,O00.0 900 in the year 1928. 1t ma,
be possible to secure some additiona
revenue from this source. perhaps a
much as S100.000.000 additional in tn
year 1922.
5.-Mlscellaneous taxes. II is sug
gested that the following miscellaneou
taxes be repealed or reduced:
"ta) The transportation tax on freish
and passengers. IL is suggested. nigh
be reduced one-half by January l. 1922
and repealed entirely at the close of thu
calendar year 1922. The resulting loss o.
revenue would be approximately s62
900 900 for the fiscal year 1922 and $3.50.
O00.O 900 for the fiscal year 1923.
\ "ObyT taxes on ice cream and foun
tain drinks imposed by section $40 nov
collected from the consuners In such {
way as TO cause unnecessary Irritation
| and material evasion, should be re
pealed For similar reasons the excess
price taxes now imposed by section 20
upon articles of wearing apparel shoulC
be repealed, and the other articles in
cluded under section 904 should be taxed
at appropriate rates to the producer Of
importer under the general provisions
OF section 900. The maximum loss II
II TeNenue eStfHlhteu " ItSuib lrOLl lneSs
changes would be less than S25.000,000 II
the fiscal year 1922.
would Tax Producer.
"(c) The tax on perfumes. cosmetics
and proprietary medicines (section 907'
also results In unnecessary Irritation
and is widely evaded. / suggest thai
this tax be imposed upon the producer
or imposter, as are most OF the sales o
excise taxes now imposed by the reve.
nue. act Of 1913 This could be done
without any loss in revenue.
'6. Suggested additional taxes. Shrink.
age I'm the yield OF existing taxes. the
gaps resulting from the suggested re-
duction and repeal OF the transportat tion
tax and the changes In other taxes. and
tho pressure Of expsnditurss upon khs