Omaha daily bee., 1921-08-12
Congress Wins
In Settlement
! OF Tax Question
solons in Good Humor Fol.
lowing Amicable Meeting at
White House; Taxpayers
Burden Lightened.
BY E. c. SNYDER.

BY e. {. SN Y DEN
Washington, Aug. ll.-(Special
relegram.) - Republicans in con-
yress, both in the senate and the
house, were in good humor ycstcr-
lay over harmony that prevailed at
the White House on Tuesday eve
ring when the leaders OF the party,
\mcluding. the majority members Of
Nhe ways and means committee,
charged by the constitution with mi
tiating tax legislation: the speaker
of the house, Mr. Mondell, floor
leader, and other advisers met to
thresh out a program for tax revi-
sion.
Secretary Mellon of the treasury
in his testimony before the ways and
means committee, threw a connipl-
ton fit into that august body when
he outlined his program or tax re-
vision which included tax of $40
on automobiles. cent increase on
first class postage and stamp tax
on bank checks, with the wiping out
of tte nuisance taxes and the repeal
OF the excess profits tax.
Saw Bitter Contention.
Hard think ing administration
men, who had been through num-
hcrless tariff and tax fights, saw in
Secretary Melons program bitter
contention and at the end divided
party. So the gray heads got to-
q v<Hether and as result Of the White
- House meeting on Tuesday night
the republican party will present to
TIE country early next week, on Mon
Aday or Tuesday. a tax revision bill
G,ha will mean reducio approx
yImately of Sc per capita for every
V,1an, woman and child in the United
States. H..
There will be no increase on au-
tomobics. The present 2-cent first
class postage will remain and there
will be no stamps on checks.
In the good-natured triumph
which the legislative wen over the
executive branch of the government,
Floor Leader Frank Mondell of Wy
o,ning must be given no inconsider-
able praise for his 'canny" knowl-
edge Of appropriations made and to
be made. Throughout the discus
sions between the secretary OF the
treasury and the ways and means
committee over tax reductions, Mon
dell insisted on reductions and no
new taxes. He believed it possible to
} frame such bill and still keep the
treasury functioning.
Entitled to Relief.
Mr. Mondell. in an exclusive in
terview with The Bee correspon-
dent yesterday, tells this interesting
economic story: =.
I'm letter to the secretary OF
the treasury nearly two months ago,
said that in my opinion the people
were entitled to lifting rather than
shifting of the tax burdens. Since
that letter was written there have
bcen times when it did net appca,
s4~.altogether certain that it would be
" POSSIBLE to accomplish real lifting
,rocess, but fortunately that time
nas passed and we are assured OF
reduction of the tax burden IN
the net amount of at least $50OOO0.-
600 and probably somewhat more.
"All this has not been acconl->
rlished without effort. 1t has re.
uuired careful study and scrutiny OF
appropriations. available balances,
thoughtful consideration of obliga-
tions that must be met, above all,
a grim determination to practice the
x, strictest economy in all branches OF
4 the public service.
First Estimate High.
"The treasury cannot afford to
oyer-estimate receipts or underesti-
mate expenditures. for it must be
prepared to meet all demands 1t
is not surprising, therefore, that the
first treasury estimate did not seem
to leave any margin for tax reduc-
ton and this being true twas IN
evitable that from the treasury view
point, on the basis of the estimates
furnished them by the departments,
new taxes must be provided in lieu
OF the burdensome, inequitable and
confiseatory taxes, it was purposed
to repeal. Unfortunately, from the
standpoint of those who would have
to pay the new taxes. they would
not be looked upon with any more
4 favor than the present taxes.
Mutual Compromise.
Fortunately we have president
who is man of sound judgment
ard possessed of unlimited tact and
patience and we have in the sec
~, retary of the treasury man OF
kA,wide experience in financial mat
X ters. The presidents suggestion OF
a conference at the White House
was an inspiration and the secre-
tarys revision Of his figures after
this afforded basis for q prompt
and amicable adjustment Of all diff
ferences. What had been a most
trying situation. fraught with dan.
ger and difficulty, was transformed
into an occasion of mutual compro..
mise and adjustments in which all
those present could unite.
THE result is we shall have a
revenue bill through the house with
ir 10 days that will repeal between
s700,000,000 and SS00,000,000 of our
burdensome, obnoxious and oppres-
sive war taxes and provide only one
new taxa flat tax on corporations
with an income above $4,000, which
: for the next two or three years will
- care for the portion OF the tax repeal,
which relates to income surtaNes.
The total net relief to the taxpayer
will as l have said. be in the neigh