Evening star., 1921-08-10
MADE
TO REPEAL EXCESS
PROFITS TAXATION
House Committee Majority
Decides to Make Action
Effective This Year.
INCOME SURTAXES ABOVE
80 PER CENT WILL GO
Provision Also to Be Made for Re-
moval of Freight and Pas
senger Tax Next Jan. /.

Repeal of the excess profits tax and
income surtaxes above 32 per cent. ef-
fective as of last January /, and OF all
OF the freight and passenger trans
portation taxes as of next January
i. was agreed upon today by republi-
cans of the House ways and means
committee, Chairman Fordney an
nounced.
May BE Is Per Cent.
The committee also is said to have
agreed to increase the normal income
tax on corporations per cent, making
total of Is per cent instead of 12h
per cent, as. suggested at the White
House tax conference last night. A
$4,000 exemption on corporation in
come was understood to have been re-
tanned.
While agreeing to repeal all the
freight and passenger taxes the COM
mirtee members decided to retain the
tax on Pullman accommodations and
on express shipments. Repeal of half
of the transportation taxes had been
agreed upon at the a White House
meeting.
Representative Bacharach of New
Jersey was understood to have pro-
posed that the exemption on indi-
vidual incomes be increased $500 for
both single and married men or that
the tax rate on incomes below $1,000.
be reduced from per cent to per
cent. Action was deferred.
deductions of approximately $780,
$4,000 in taxes and S520.000 900 in
government expenditures this fiscal
year were agreed upon last~night at d
conference between President Hard
ing. Secretary Mellon and republican, n
| leaders in the House of Representa-
tlves, incluoing members of the ways
and means committee
| Decision was had. il was said, to
| abandon all new taxes suggested to
! the House committee last week by
| Secretary Mellon. including a license
| tax on automobiles. bank check
| stamp tax and an increase of ] cent
In the frst-ciass postage rate. Re
| publlcans of the ways and means
| committee are to meet today to draft
a new revenue bill on the basis of the
revisfons agreed upon. and leaders
| said it was hoped to have IL ready
for conference of House republicans
next Monday Hope for it's passage by
pressed.
Under the agreement reached at the
White House conference, government
expenditures this year would be re-
duced from the previous estimate OF
s4554 100000 to $4.834 100000 and the
cut from s3.67O.0O0.000 to S3.075. .O00.-
600. The total income from all sources
were estimated at 4,035. .000, eco, in
! cluding s570.000.0e from customs.
| $500. 1000 from miscellaneous
sources. including sl40.0O0.OOO more
| than heretofore estimated on the sale
of war salvage. and 500, 900. 900 addi-
! tional from back taxes.
Cuts in expenditures proposed in
cluded $3.50. 100000 for various gov
| ernment departments and agencies
and $170.000.000 on account of the
| public debt Departmental cuts in
cluded s50.00e.000 War Department.
$10n.000,0OO Navy Department. sl00.-
! 100000 Shipping Board. S25. .000. zoo Ae-
riculture Department. S25. .00O. .O00 mis-
cellaneous and S50.900, 200 in the es-
| TINA ted payments of $545.000.000 10
! the railroads.
The $4,000. 900 previously estimat-
| ed as necessary to retire war savings
securities and Pittman act certifi-
| Gates will be taken care of through
! refunding operations, it was stated
the Treasury retiring these securities
by borrowing in the open market.