The Birmingham age-herald., 1921-08-02
MELONS PLANS ARE HEARD BY THE
 HOUSE COMMITTEE
Has Many Suggestions for Revising the Revenue Bill Now Before Congress as
 Important Measure

Washington, August LA tax of . cents on bank checks, a flat license tax of per cent on all automobiles irrespective of cost, an increase of first class postage rates to/3 cents and an added levy on cigars, to- bacco and cigarettes are understood to have been among tax revision suggestions presented today by Sec l. retary Mellon to the House ways and means committee meeting in execu tive session
 Other suggestions were said u have included:
 A reduction of 50 per cent in trans portation taxes, both passenger and freight, next year, and their elim- ination the year following
 Repeal of the taxes on soda foun- tain drinks and ice cream.
 Repeal of the excess profits and elimination of the $2,O00 exemption on corporations incomes
 Increase of the normal income tax on corporations from the present iO per cent to IS per cent.
 Income Surtax Brackets
 Elimination of the income surtax brackets above 40 per cent with the surtax rates on incomes ranging from s6.ooO to s50.OOo increased.
 me revenue bill. as revised in az cord with these suggestions. would be designed to raise approximately 5000, 100000 next year, it was said
 MT, Melons memorandun c1nbody ing his views was withheld, bu' Chairman Fordney promised to make it public tomorrow.
 Representative Garner of Texas ranking democratic member of the committee, attacked the treasury sec retary's proposals, declaring that every one of them constituted a shifting of the tax burden from the classes to the masses"
 Government Expenditures
 Mir Mellon was said to have esti- mated government expenditures fos next year at s4,675, 900, 900, but Char man Fordney said this was dependent upon how much of the $500, 900, ,000 due the railroads would have to he advanced out of the federal treas- uTNt Int CpAl Ol oDti dtlnB hbS rON ernment merchant fleet and the sile of expenditures for the army and the navy.
 Aside from international taxes, the treasury secretary was understood to have estimated customes receipts for next year at S450.000.000 and miscel- laneous receipts. including salvage at s35O. 900 ,000. IT. was said to have figured that the slo licenses tax on automobiles would bring in $l00.000, 900 and that added levy on cigars, tobacco and cigaretts an additional s25.00o 900. Increased postal rates have been estimated to yield another S75,00o 000, but the estimate IS to the income from the proposed tax on bank checks was not disclosed.
 The loss of revenue through reduc- tion of the transportation taxes has been placed at approximately sl5o,- 100000
 Hear Mellon
 After the committee had heard Sec retary Mellon, Commi ssioner Blair, and other officials of the government Chairman Fordney reiterated his statement of last Saturday that the tax bill could be s500,000,000 and the government run of 4,000,000,000 a year.
 Representative Garner said that government expenditures in excess of that sum next year would be will full, wicked waste of public funds, wholly indefensible." He asserted that the federal establishment could be run on s3.5ou. ,o0s, adding that Representative Maddan of Illinois, the new chairman of the appropria- tions committee. had declared In an address that this sum should be suf- ficent.
 Before the committee heard the treasury experts, the republican mem- bers were in conference with MT. Madden for a discussion of expenses next year and more particularly the needs of the shipping board, the army and the navy.
 Examination of the treasury of- ficers concluded the committees hearings on the revision measure and the republican members are to get to work tomorrow on final draft of the bill. Chairman Fordney re- iterated that the committee probably could not complete the measure under three weeks.
 Y Yo