Evening star., 1921-08-05
HOPE TO CUT TAXES
AND STILL PROVIDE
FORNEEDS0F J.. S.
Republicans Consider Ways
of Meeting Reduction OF Halt
Billion in Levy.
MONDELL STATES TASK
FACED BY COMMITTEE
Saving Believed by Some to Be
Possible in Rail and Shipping
Expenditures.

To realize their expressed nope OF
reducing the nations tax bill by half
a billion dollars, republican leaders OF
the House of Representatives appear
on the basis of Treasury estimates. to
be faced with the task of cutting
three-quarters of a billion dollars
from estimated government expendi-
lures for this fiscal year or else risk
ing a huge federal deficit next July 1.
Secretary Mellon has warned that
even If more than $250.00o,000 should
be Topped of the estimated expendi-
lures Of s4,550, 100000, the tax yield
could not safely be permitted to fall
below $3,570,o00,000. the estimated re-
turn under the existing law.
Coupled with this warning is the
declaration that 1t would be folly"
TO reduce revenues without the as
surance of substantial additional re-
ductions in expenditure. Mr.. Mellon
added that in seeking to arrive at an
estimate of the cash outgo for the
year, the Treasury could not take into
account paper savings or hoped-for
not reasonably be expected to ma
terialize."
MondeIl's Opinion.
-
ever, Representative Mondell of Wy
oming, the republican leader, de-
clares that in his judgment it is en-
tirely practical to reduce the total
tax levy by $500. 100000 and still take
care of the essential needs of the
government.
Il realize" he added, that If all
the = bureaus. departments and
agencies of the government expend-
ed the sums they have heretofore
anticipated spending, and in addition
to that we were called upon in a va
riety of ways to make large expen.
ditures in the actual reduction of the
sum total of the public debt, over
and above sinking fund expendi-
lures, we could not reduce revenues.
But neither of these things should
happen
ways and means committee. it has
been explained, Is determining where
cuts in expenditures can ba made
safely and the amounts. Some re-
1has aish OF se sad
financing plan proposed in pending
legislation IL would be possible to
materially cut down the $545.206.00o
roads. At the Treasury, however. it
is explained that this estimate is in
dependent of the financing proposed
to be done by the War Finance Cor
poIdllOH, anu represents payments on
account of the transportation act and
federal control,
The outgo estimate also includes $780,
100000 for the Shipping Board, and
some leaders say they are determined to
trim this total The outlay for the main
tenance of the government merchant
fleet is giving many members of the
House concern, and there has been con-
siderable private discussion lately of
some plan to ease the drain on the
Treasury from that direction.
Opposition to New Taxes.
Opposition to the new taxes suggested
by Treasury officers continues to grow,
with Representative Mondelf coming out
fatly against any increased postage and
bank check tax The republican leader
also has said he doubted either the
necessity or advisability of the automo-
bile levy.
He declares for repeal Of the trans
portation and soda water taxes, the
excess profits tax and the higher in
como 8urtaxee, with additional reve-
nue provided through S per cent
increase in the corporation income
tax.
According to Charles A. Lyman.
secretary.treasurer Of the National
Board OF Farm Organizations, the as
sociations of farmers over the country
are preparing to launch a determined
fight against repeal Of the excess
profits tax. These organizations al
ready have given their views on this
question to the ways and means COM
mittee. and Mr.. Lyman says If the
committee reports bill with a repeal
provi sion the farmers will appeal to
the agricultural ''bloc' and all other
friends in Congress to work for its