The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1921-08-12
LEADER DEMANDS
S5OO,OOO,0OO CUT
Mellon Gives Revised Estimate
and Figures on Proposed Mo-
tor Car Tax and Others.
TOTAL NEED S4,55O,OOO,000
Federal Cost Must Be Cut $3.50, 000,-
600 to Avoid Added Burden-Puts
Internal Tax Need at
$3.50, ooo, 900.

shington.-Insisting before the
House Ways and Means Committee
that there should be no addition of
taxes, but tightening of the burdens,
Republican Floor Leader Mondell
said:
ut is entirely practical, In my
opinion, to reduce the total tax levy
by at least $5OO,OOO,0OO and still meet
all proper, necessary, and essential
expenses of the Government"
Mr.. Mondell had been preceded by
Secretary of the Treasury Mellon,
who, estimating that revenue from
internal sources for this fiscal yeur
must be about $780, 100000, declared
that If taxes are to be reduced the
executive end of the government must
make additional cuts in expenditures
Of more than $250,0O0,000.
Arguing for reduction Of the tax
devy, Mr.. Mondell said, in part:
"The excess profits tax and the
higher income surtaXes should be re-
pealed and nothing substituted for
them. The so-called nuisance" taxes
and the transportation tax, in whole
or in part, should be repealed, and
some simple, easily understood tax
as, for instance, the proposed per
cent fiat increase on corporation
taXes-enacted to provide funds lost
by the repeal of these last mentioned
taxes.
Possibly some other one form of
additional tax may be necessary, but
doubt it. In any event, we should
not, in my opinion, adopt the stamp,
the bank check or other taxes of that
character that have been suggested,
and l doubt also the necessity or the
ACCESSIBILITY of the automobile tax.
people are expecting a real reduc-
tion-a lifting and not wholly a shift
Ing of the burden. They are entitled
to it, and their reasonable, expecta-
tons can be met and still fulfil all
the necessary and legitimate oblga-
lions of the Government"
Mr.. Mellon said the S3,S30000,000
revenue "can be safely reduced only
If, and to the extent that, further re-
auctions are enforced in the spending
departments of the government.
This MEANS" he continued, "that
! If additional taxes are to be avoided
there must be additional effective
cuts in ordinary expenditure of more
than $25O,0O0,OO0. Even if such cuts
were assured, the internal revenue
yield for the year could not safely
be permitted to fall below S3,57O,0O0,-
600, the estimated yield under exist
/ ing law"
Members of the Ways and Means
Committee, which was considering
the tax question behind closed doors,
took issue with Secretary Melons
estimates of the expenditures and re-
ceipts Of the Federal government for
the current fiscal year. He was told
he had failed to take into account
sundry claims and other demands
against the government, and that the
total expenditures would be much
nearer S5,OO0OOO,OOO than his estimate
of S4,55O,OO0,OOO
The secretary admitted in answer
ing questions, 1t Is understood, thar
his estimate Of expenditures was "the
minimum" and not the maximum.
Members got the impression that he
did not include various claims against
the government, such as are connected
with railroad control and the Shipping
Board.
The treasury programme Of tax
revision would repeal the excess prof
its taxes, increase the corporation fax
from 10 to 10 per cent, increase the
taxes on cigarettes, repeat transpor-
tation taxes, reduce income surtaxes
and add sundry stamp taxes.
Under the treasury program Mr..
Mellon estimated that the government
can collect $3,935,OOO,OOO from inter-
nal sources. This does not include
proceeds from the suggested increase
in postage rates and stamps on bank
checks.