The Dawson news. (Dawson, Ga.) 1889-current, 1921-08-02
CONGRESS AT WORK
ON THE TAX PROGRAM
REPUBLICANS BEGIN SHAPING
LEGISLATION. SALES TAX
TO BE ABANDONED.

] WASHINGTON, D. CA program
OF tax legislation involving little, il
any, reduction, but readjustment OF
federal taxation, began to assume def
mite form today at a conference OF
treasury officials and republican MEM
bers of the house ways and means
committee.
Among the developments. we're the
following:
Sales Tax-Republican members OF
the ways and means committee, &C;
cording to an announcement by Chair
man Fordney, have determined def
nitely to abandon further thought OF
any sales tax and hence will not waste
any time on the subject at the hear
ings scheduled for next week. The
committee is favorable in general to
the treasury program for tax revision.
Transportation Taxa proposal
that this tax be reduced by SO per cent
for period of one year and eliminated
entirely thereafter was given favorable
consideration.
Corporation Income Taxes-Com-
mittee members approved the treasury
recommendation for an increase OF the
corporation income tax from 10 per
cent to Is per cent and the repeal of
the $4,000 exemptions for corporations,
the additional revenue from these
sources being expected TO offset the
loss resulting from the repeal OF the
excess profits tax.
Individual Income TaX-The recon-
mendation of the treasury for reduc-
ton of the higher surtaXes to about
40 per cent will be followed. 1t appears
to be accepted as a settled fact that the
present normal taxes on individual in
comes cannot be reduced.
Nuisance Tax" to Go.
Miscellaneous Tax-Despite protests
by various groups most OF the mis-
cellaneous taxes will be retained with
the exception of a few so called 'nui-
sance" taxes, such as that on soda
water The chief problems remaining
to be worked out relate to new mis-
cellaneous taxes, (which must be i'm
posed in order to bring the total rev.
enue up to the desired level New taxes
considered at the conference included
federal automobile license tax, an
increased cigaret tax, tax on bank
checks and other new stamp taxes.
Customs Revenue-Joseph S. Nc
Gov, actuary of the treasury depart
ment, told the conference that not
more than $150,000000 additional rev
enue can possibly be realized under
the new Fordney tariff bill, or total
of $3.50, 100000, as against $300,000,0 0C
under the Underwood law
Necessary Internal Revenue-Treas-
ury officials stood by their previous
estimates that it will be necessary to
raise approximately S4,00OOOO,00O by
internal taxation.
Date OF Effectiveness of New Rev
enue LaWs-There has been no change
in the program to make the new tax
effective with the calendar year OF
1921, collected in 1922. Final enact
ment of the revenue is expected in DC
tober OF November.
S4,0o0,0Oo,000 Total Needed.
The treasury officials went over
their estimates as to the probable ex-
lpenditures of the government as made
public in a letter by Secretary MelIen
to Representative Fordney several
weeks ago. 1t was indicated that with
new demands for additional funds for
the shipping board, the railroads and
other purposes there was no possible
ty of reducing the necessary total to
be raised from internal taxation below
$4,000,000,000.
Representative Tilson indicated that
he as we'll as other members of the
committee felt it was useless going on
with the discussion of sales tax.
"A sales tax is not feasible until the
public is fully educated on the propo-
sition," said Mr.. Tilson. That time
has not arrived"
A federal auto tax, it was estimated,
might yield $80,000,000. A new cigaret
tax might produce $20,000,000. A tax
of 2 cents on bank checks would raise
$45 ,000, 600. Sentiment seems to be OPP
posed to tax on gasoline which has
been suggested, or to return to s.
cent postage.