Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-02
REVOLT GREKTS
NEW TAX PLAN
IN CONGRESS
Both Republicans and Demo
Gratis Strongly Against
Mellon Proposals.

WASHINGTON, Aug. IA wave Of
opposition In both Republican and Dem
| ocratic ranks Of Congress today greeted
! the new taxes proposed to the House
Ways and Means Committee by Secre-
tary Of the Treasury Mellon as a means
Of replacing revenue lost by a repeal
Of the excess profits levy. These pro-
posed new levies were:
! $40 Federal license tax on all-~au-
| tomobiles
! A two-cent stamp on all bank checks
| Three cent postage.
J Republican leaders frankly admitted
! they believed 1t would be political
| suicide" to enact these taxes after the
campaign pledge Of the Republicans that
| the taxes Of the mass Of the people
would be reduced.
| Democratic leaders stated the recon-
| mendations backed up their predictions
| that a movement was under way to
| shift taxes from the rich to the masses
! by repeating the excess profits levy, re
| ducing the sGrtax rates and then sub
I stituting direct taxes that would effect
nearly all the people %.
! The complete program follows the line
of suggestions previously discussed by
him with members of the committee as
follows:
Repeal OF the excess profits tax
/ and substitution Of a 10 per cent
/ fiat tax on corporation incomes in
| stead of the present tax Of 10 per cent.
Elimination of the present ex-
emption Of $1,000 on corporation in
I comes
Repeal or modification of the capital
/ stock tax
Reduction OF the highest surtax
| rate on individual incomes from 50
/ per cent to 80 per cent, which with
/ the normal tax Of per cent Will
! make a minimum Of 10 per cent
/ Revision Of some Of the lower sur
| tax rates upward In order to obtain
/ the same amount Of revenue as at
! present.
Retention Of normal taxes on lndi-
/ vidual incomes al the present rate Of
/ 4 per cent on net incomes under $1,000.
| and S per cent~on net incomes above
! that amount.
| Reduction Of transportation tax 10y
J so per cent for n period OF one year
! aud complete elimination thereafter.
Repeal Of so-called nuisance
! taxes, such as the soda water tax,
which do not yie!d much revenue.
Retention Of most Of the other
present miscellaneous taxes
/ WILL GIVE
! NEEDED REVENUE.
1t was indicated by the treasury OF
fcials that under this program the rev
enua from internal taxes would fan lit
tie short of the 81 600 600 600 which has
been held to be necessary. The revenue
from this source - was stated. probably
would he between $500 600 GOO and So
900 600 o00
In view If the plans Of the war finance
corporal ton 10 take care of railroad needs
without direct appropriations, the belief
Of the treasury now is that that amount
will be sufficient
The treasury estimates that customs
revenues will amount 20 s+50,OO0,o00 and
that salyage Of war supplies NAV yield
100000 0c0 Representative Fordney
chairman Of the Ways ana Means Com
mittee, expressed himself as believing that
500 600 900 could be cut of from the
treasury estimates.
WANT MORE
DISTRICTS.
Secretary Mellon WAS accompanied by
Cndersecretsry Of the Treasury Gilbert
ond Commissioner Of Internal Revenue
Blair. SIR. Blair urged the committee
to include In the revenue bin a provision
FOR Increasing the number Of iaternal reve-
nue. districts by ten.
Secretary Melons suggestion for n $40
tax on automobiles probably Will be ac-
/ cepted With publications Representa-
tive Fordney IN ors a minimum Of SO
/ with a graduated scale applying 20 au-
tom0hiles If different llues. tho higher
priced cars bes ing tax cf So
/ Nr Fordnav believes chat the tranSpor-
tation tax should be ~ lpe1 out entirely.
I instead Of being cut in two.
/ suggested revision Of titles /. II and
{ III Of the revenue act has been pre-
/ pared blythe Treasury Department These
| titles include Administrative provisions
and taxes on individuals and operations
but do not include miscellaneous taxes
Representative Madden. Illinois, chair
man, also appeared befo Ne the committee
during the day to give his view 81 the
probable expenditures Of the Govern
ment during the coming year