New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-07
New Tax Bill
May Be Ready
Ill Ten Days
House Committee TO Begin
Final Revision of Meas
ure Tomorrow; Fordney
Expects Rapid Action
Cuts in Levy Uncertain
Members Still Differ on
Details of Program and
Sharp Fight is Possible

WASHINGTON, Aug. 6.--Majority
members of the House Ways and
Means Committee expect to get down
to the brass tacks Of tax revision next
week
Chairman Fordney said to-day the re-
writing of levy provisions in the 1918
law probably would begin Monday and
unless an unexpected snag was en-
countcred the new bill should be ready
within ten days. Leaders generally
say House consideration will require
only few days.
With revision of the administrative
features out of the way, the work now
before the Republican committeeman
is to determine the extent Of the cuts
possible and just when they are to be
made. The general belief seems to be
that the committee bill will propose
repeal of the excess profit tax, but
whether the effective date will be last
OF January or next January apparent
ly remains to be determined.
AS a substitute for the excess
profits tax it is planned to increase the
corporation inco tax from the pres
ent 10 per cent to Is per cent, and
also to repeal the $4,000 exemption al
lowed corporations under the existing
law. Chairman Fordney said to-day,
however, that it might be necessary to
make some specific provision in the
bill to relieve the burden this would
impose on the small corporations with
limited incomes.
Personal Service May Be Taxed
The chairman also disclosed a pro-
posal to write into the new bill pro-
vision taxing the income of the So
called personal service corporations,
such as architectural firms not incor-
porated under law, the same as the in
come Of other corporations. The Su-
preme Court has held that the present
law is not applicable to such concerns.
Mr., Fordney also said it was not pro-
posed to relieve public service corpora
tions from part of the Is per cent in
come tax provision of the bill. The
chairman indicated that he was not
particularly impressed with the argu-
ment that this would hit any such
corporations very hard, saying that
electric light, street railway, pas and
such companies having small net in
come would pay proportionately small
revenue to the government.
Aside from revision of these levy
sections of the law the minds of many
repeal of the higher income surfaces
c all or part of the transportation
taxes and of the fountain ice cream
ievies. 1t is explained, however, that
1T does not necessarily follow that
these changes will be made or that
other changes in the 1918 law will not
be made. The actual revisions are vet
to be agreed upon, with indications of
some fights in the committee before the
completed bill comes out.
Half Billion Cut Estimated
1t was estimated to-day by some
persons that immediate repeal of the
whole transportation tax, soda water
tax and the higher surtaxes, together
with the s55,000,0O0 which the Treas
ury experts figure will be lost this
profits taxes as of last January i.
would approximate the half billion dol
lar cut which Republican leaders in
the House insist can be made in the
tax levy.
With such a reduction the taxes to
be paid this fiscal year would approxi-
mate $3,070,000,000 on the basis of
Treasury estimates presented to the
committee, and would include $685.
100000 estimated back taxes. In adj
dition to this income, the Treasury
figures customs receipts under the
proposed new tariff law at $3.50 900 900
and income from miscellaneous sources
at about $350000,000, making a total
income of $3,790,000, 900, as against an
outgo estimated in the Treasury state
ment at $4,554 100000.
Supporters of the tax cut declare,
however, that the apparent deficit of
S764,000 900 would be greatly decreased
through additional collections on back
taxes, estimated at probably 500, O0O,-
600, larger income from miscellane-
Gus sources and decreases in expendi-
lures, including those on account of
the public debt and the various Fed
eral departments.