The daily times., 1921-08-11
CUT IN TAXES AS
It WAS OUTLINED
BY THE PRESIDENT
FIRST CUT IN MARCH
Mindful of the Opinion That
Demands That Expenses be
Cut the Administration Has
Outlined a Program Which
Represents a Reduction of
Six Hundred Million.
(By David Lawrence
Copyright, 1921, by The Daily
Times


Copyright, 1921, by The Daily
Times.)
Washington, Aug. 10.-The Amer
ican people will have their first cut in
taxes since the European war when
they make out their income tax re-
turns next March. President Harding
and Secretary Mellon as well as Re
publican leaders in Congress mindful
of the overwhelming opinion which
demands that government expenses
be cut and taxes reduced have outlin-
ed a program which represents a net
reduction of 100000 in the
amounts that must be raised by di-|
rect taxation.
| Mr.. Harding and the Secretary of
the Treasury stood in the Presidents
Room of the Executive Offices and
outlined to the correspondents the
nature of the changes in the tax pro-
gram. Chairman Joseph Fordney of
the Ways and Means Committee and
Republican leader Frank Mondell also
stood by ready to answer questions
and explain the figures. The picture
was one of absolute informality the
President having asked his colleagues
to stay in the room with him and
submit to interrogation so that the
public might have no misapprehen-
lsions about the tax program.
In order best to understand the
changes that have been made the fol-
lowing table summarizes the data
given out by the President and the
Secretary Of the Treasury.
= .@s-bi xsss
Amount estimated two weeks ago
| by Secretary Mellon as necessary
to run the govern
! uSuI
Amount now officially
estimated as budget $4,034, 100000
Net reduction in esti-
How was that $52O,00O,OOO cut in
estimates accomplished? The Presi-
dent simply insisted that the vario-
Gus government departments cut
their requests for money still fur
ther than they have. Furthermore
certain sums which were falling due
this year and which were expected to
be paid out of new revenues will be
deferred So the analysis of the
$500, 100000 reduction in estimates
| is as follows:
, Amount by which go
vernment will reduce
their appropriations $3.50, 100000
Amount of floating
debt to be deferred $4,000, 900
). Total ...............s $500, 100000
The floating DEBT referred to above
consists of about $10O,O00,0OO in
war saving securities and $70,00O,-
loco in what is known as Pittman Act
certificates AS a matter of fact this
total of $17O,OOO,OOO was incurred
lduring the war and is to be regarded
, as a part of the war debt. There
wasn't any more reason in Mr.. Mel
Ions opinion for paying that $17O,-
100000 out of new revenues than
paying off Liberty Bonds. Of course
such part of the $17O,0OO,00O as falls
due during the year will be paid fol
lout of sinking fund or other avail
able funds 1t isn't such a large
amount but that it can be handled
satisfactorily. So it was cut out OF
the estimates of new revenue.
! The most important announcement
: made was that the actual tax bur
q den of the people would be $3,O75,
n 100000. This is about $6OO,OOO,0Oi
o. less than it has been under the pres
: ent law. The following analysis shows
CONTINUED on page 81