New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-02
Tax on Autos
And Checks I'm
Revised Plan
Suggestions Include In
crease of Postal Rates,
With Added Levy on CT
gars, Cigarettes, Tobacco
Total Is Four Billion
Soft Drink Exemption Is
Urged by Mellon in
Schedule Offered House

WASHINGTON, Aug. IA tax 0
two cents on bank checks, fiat licen 81
tax of $40 on all automobiles, IRE
spective OF cost or horsepower; an in
crease Of frst-class postage rates t
three cents and an added levy OF
cigars. tobacco and cigarettes are un
derstood to have been among tax re
vision suggestions presented to-da,
by Secretary Mellon to the HOUSE
Ways and Means Committee, meeting
in executive session.
Other suggestions were said to have
included:
A reduction of SO per cent in
transportation taxes, both passenger
and freight, next year and their
elimination the year following.
Repeal of the taxes on soda foun-
hin drinks and ice cres'n.
Repeal % the excess profits tax
and elimination of the $4,000 exemp-
ton on corporations incomes.
Increase of the normal income tax
on corporations from the present 10
per cent to Is per cent.
Elimination of the income surtax
brackets above 40 per cent, with the
surtax rates on incomes ranging
from $4,000 to $4,000 increased.
The revenue bill, as revised in accord
with these suggestions, would be de-
signed to raise approximately $4,000
100000 next year, it was said. Mr.
Melons memorandum embodying his
views was withheld, but Chairman
Fordney promised TO make it public
tomorrow.
Garner Attacks Schedules
Reprosentativn Garner, Of Texas, the
ranking DemooA c member of the
committee, ate ,ed the Treasury
Secretary's PROPOSALS, declaring that
every one of thel constituted q
"shifting OF the tax uur..cn from the
classes to the masses"
Mr.. Mellon was SAID to have esti-
mated government expenditures for
next year at s4,s75, Oo0, 900. But
Chairman Fordney said this was de-
pendent upon how much of the $780,
100000 due to the railroads would have
to be advanced out of the Federal
Treasury, the cost of operating the
government merchant fleet and the
size Of expenditures for the army and
the navy.
Aside from internal taxes the Treas
ury Secretary was understood to have
estimated customs receipts for next
year at $3.50 100000 and miscellaneous
receipts, including salvage, at $780,
100000. He was said to have figured
that the $40 license tax on automobiles
would bring in $500, ,o0O and the
added levy on cigars. tobacco and cigar
cites an additional $4,000, 900. In
creased postal rates have been esti-
mated to yield another S75 100000, but
the estimate as to the income from the
proposed tax on bank checks was not
disclosed
More Economy Planned
The loss of revenue through reduction
of the transportation taxes has bean
placed at approximately $3.50 900 900.
After the committee had heard Mr.
Mellon, Internal Revenue Commits
sioncr Blair, DR.. Z. S. Adams. Treas
ury tax expert, and other fiscal officers
o. the government, Chairman Fordnev
reiterated his statement of last Satur-
day that he believed the nations tax
bill could be cut $5o0,000,000 and the
government run for four billion dol
lars year.
Representative Garner said that
government expenditures in excess of
that sum next year would be a "wilful.
wicked waste of public funds, wholly
indefensible"
The Republican 7 =, oers plan TO
get to work tom ORC en- final draf,
of the BILL Chairn.AA Fordney reiter-
ated that the committee probably
could not complete the measure under
three weeks.