The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-08-10
900 Gallons of Mash In O'Marron Home
DRASTIC SLASH
AGREED UPON IN
REVENUE BILL
Mellon Figures Cut to
Extent of $780,
900, 900.


Washington, Aug. 10.-Repeal of
the excess profits taxes and income
surtaxes above 80 per cent, effective
as of last Jan. 1, and of all of the
freight and passenger transporta-
tion taxes as of next Jan. l was
agreed upon today by Republicans
of the house ways and means COM
mittee, Chairman Fordney an
nounced.
The committee majority also
agreed to increase the normal in
come tax on corporations per
cent, making total of Is per cent,
instead of 12h per cent, as sug-
gested at the White house tax con-
ference last night A $4,000 ex-
emption on corporation income was
understood to have been retained.
Washington, Aug. 10.-President
Harding, having intervened to
straighten out tax revision differ
ences between leaders of the house
of representatives, and treasury Off
GERS. ways and means committee
Republicans set to work today to
draft revenue bill to yield $3,075,-
100000 or approximately 5000, 0,000,-
600 less than had been suggested by
Secretary Mellon.
This total was agreed upon last
evening at a White house confer
ence attended by the treasury sec
retary, Speaker Gillette, Represent
ative Mondell of Wyoming, the Re
publican leader, Chairman Fordney
of the ways and means committee
and many other prominent house
Republicans.
AT the same time, decision was
reached, it was stated officially, to
cut S520,000,000 from the estimated
expenditures for this fiscal year,
leaving the total at S4,0S4 ,000, 900,
as against the treasury's estimate
of s4,554 900, 900. This would be ac-
complished, it was explained, by
somewhat drastic slashes in esti-
mates for the war, navy and agri-
culture departments the shipping
boards and railroads and the re-
ment on account of the pubic debt.
Chairman Fordney said his COM
mittee probably could have the new
revenue bill ready for consideration
by a conference of house Republi
cans next Monday, and leaders gem
orally thought the measure could
be passed by the house by Aug. 20,
permitting congress to recess on
that date for a month.
New Program.
Under the program as now plan
ned, the senate financial committee
would work on the tax bill, during
the recess, with a view to having it
ready for senate action when con-
gress reconvened This would per-
nit of final passage of the bill ahead
OF. the permanent tariff measure,
program, it was explained, which
the president desired to have car
ried out.
The great bulk of taxes which it
is proposed to repeal, would come
off as the first of last January, there
being an excess profits tax, esti-
mated at s450,000,000, and the in
come surtax brackets above 80 per
cent, which are estimated to >yield
S90,000,000.
After this year, the income tax
would be reduced to 25 per cent, en-
failing a further revenue loss next
year. Repeal of the other taxes
roposed-one-half of the transpor-
tation taxes, and the co-called nui-
sance and luxury clothing leyies-
would become effective Jan. l next,
and would result in loss of $780,
900, 900 in revenue.
The plan is to cut of all of the
transportation taxes on January 1,
1928. The proposed increase in the
levy on the incomes of corporations
also would be made retroactive TO
last January.
The White house agreement was
for an increase of 212 per cent in
stead of per cent, making the to-
tai 1212 per cent estimated to yield
$125, 100000.