The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-08-09
TAX ON WEARING
APPAREL Is ALSO
in THE SCHEDULE
Republican Members of House
Ways and Means Committee
Reach an Agreement.
PROPOSE REDUCTION OF
NEARLY HALF BILLION
President Harding and Secretary
Mellon to BE Consulted
Regarding Plan.

WASHINGTON, Aug. S.-Agreement to
eliminate the taxes on fountain drinks
and ice cream and the so-called luxury
tax on wearing apparel is understood to
have been reached today by republican
members Of the house ways and means
committee, sitting in executive session.
A reduction of one half in the ten per
cent levy on sporting goods also is said
to have been agreed upon.
The total loss of revenue from these
proposed changes would be slightly less
than $50, 900. 900 and the reductions are the
first to be passed upon by the majority
members in their effort to carry out the
announced program of republican house
leaders to cut half billion dollars from
the nations tax bill.
Repeal Of the ten per cent tax on car
donated bottled beverages, which is col-
iected and paid by the manufacturer
monthly, also was discussed at the meet
ing, and favorable action was predicted
by some members Of the committee who
argued that 1t was not fair to remove the
tax on drinks at fountains in the cities
and retain the levy on bottled goods sold
largely in the rural districts.
Before undertaking revision Of specific
sections of the existing revenue law, the
committee majority spent several hours
discussing possible cuts in both taxes and
expenditures, together with the probable
amounts of government income from the
various sources other than internal rev.
enue. Several sets of figures were con-
sdered, but ii was said no formal agree
ment was reached on any final totals.
Il is understood that in the course of
this discussion there was a suggestion
that the committee appoint a delegation
TO go over the whole situation very frank
~ with President Harding and Secre-
tary Mellon with view to obtaining their
counsel as well as urging that the execu-
tive departments hold down rigidly on ex-
penditures. So far as was disclosed no
action was taken, but at the conclusion
OF the days sessions, Chairman Fordney
said he might confer with Mr.. Harding
upon the latter's return from New Eng
land.
Estimates before the committee today
We're said to have contemplated total cuts
OF approximately s579 200, 600 in probable
expenditures for this fiscal year leaving
the total at So, 905. 900. 900, exclusive OF
postal estimated at S575, 900. 600 Reduc-
tions proposed include SIS, 900. 900 for the
army, $57,000,00 900 for the navy. 500. OO0.-
600 for the shipping board, $245. o0O. 600
for the railroads and s100 900, 900 pro-
posed by the treasury to be employed in
redeeming war savings securities
Tax reductions suggested totalled $500
100000, including $3.50, 900, 900 excess prof
its, 10000, 900 income sur-taxes, $50. .000.
goo nuisance taxes and $3.50 0O0. 900 trans
portatfon taxes. AS an offset against
these reductions estimated increase In an
income included 1862. .0O0, 900 from the
proposed five per cent increase in the cor
porate income tax to offset the excess
profits levy $4,000. 900 from customs he
cause of the proposed new tariff law and
$6O.oOo,oOO from the sale Of surplus war
supplies.
me net loss in government reven,e
this year on this basis would be s4S5. ono
oVo II the repeal Of the excess profits
ana higher income surtaxes were mada
retroactive to last January /, but II wa
said today that sentiment to defer these
repeals until next January was gror,~
ing Should the committee finally decide
20 postpone the date OF these revisions.
the net loss in revenue on the basis Of
this set OF figures would be s1So. 600 ono
leaving the total net income for this fiscal
year at A,I11000,000, exclusive Of nostaI
receipts. estimated at $500 600. 900 n
was indicated today by some committees
'members that the repeal Of the excass
profits and income srtaxes might be tha
last OF the revisions to be taken m IN
the hope that meantime sentiment might
become more clearly pronounced. nar-
ticularly as to the effective date Of the
repeal