The Prince George's enquirer and southern Maryland advertiser., 1921-08-19
LEADER DEMANDS
S5OO,o0O,OOO CUT
Mellon Gives Revised Estimate
and Figures on Proposed Mo-
tor Car Tax and Others.
TOTAL NEED S4,55O,OOO,OOO
Federal Cost Must Be Cut $3.50, ,000,-
600 to Avoid Added Burden-Puts
Internal Tax Need at
$3,83o,o 900.

House Ways and Means Committee
that there should be no addition OF
taxes, but tightening of the burdens,
Republican Floor Leader Mondell
said:
"It is entirely practical, In my
opinion, to reduce the total tax levy
by at least $500,O0000O and still meet
all proper Necessary, and essential
expenses of the Government"
Mr.. MOndell had been preceded by
Secretary of the Treasury Mellon,
who, estimating that revenue from
internal sources for this fiscal year
must be about $3,s3O,OOOOOO, declared
that if taxes are to be reduced the
executive end of the government must
make additional cuts in expenditures
of more than $250,0OO,OOO
Arguing for a reduction Of the tax
devy, Mr.. Mondell said, in part:
"The excess profits tax and the
higher income surtaXes should be re-
pealed and nothing substituted for
them. The so-called nuisance" taxes
and the transportation tax, in whole
or in part, should be repealed, ami
some simple, easily understood tax
as, for instance, the proposed 5 per
cent fiat increase on corporation
taXes-enacted to provide funds lost
by the repeal of these last mentioned
taxes.
POSSIBLY some other one form of
additional tax may be necessary, but
l doubt it. In any event, we should
not, in my opinion, adopt the stamp,
the bank check or other taxes of that
character that have been suggested,
and l doubt also the necessity or the
advisability of the automobile tax.
"People are expecting a real reduc-
tion-a lifting and not wholly shift
ing Of the burden. They are entitled
to it, and their reasonable expecta-
tions can be met and still fulfil all
the necessary and legitimate obliga-
tions Of the Government"
Mr.. Mellon said the So, S30OOO,OO0
revenue "can be safely reduced only
if, and to the extent that, further re-
ductions are enforced In the spending
departments Of the government.
"This MEANS" he continued, that
if additional taxes are to be avoided
there must be additional effective
cuts in ordinary expenditure of more
than 100000. Even if such cuts
were. assured, the internal revenue
yield for the year could not safely
be permitted to fall below S3,57O,OOO,-
600, the estimated yield under exist
ing law"
Members of the Ways and Means
Committee, which was considering
the tax question behind closed doors,
took issue with Secretary Melons |
estimates of the expenditures and re- |
ceipts of the Federal government for |
the current fiscal year. He was told |
he had failed to take into account |!
sundry claims and other demands |
against the government, and that the |
total expenditures would be much |
nearer $5,000,000,00O than his estimate
of S4.5100O0.0O0.
The secretary admitted in answer |
ing questions, it is understood, thaG ,
his estimate of expenditures was "the
and not the maximum.
Members got the impression that he
did not include various claims against |
the government, such as are connected !
with railroad control and the Shipping
Board.
The treasury programme of tax
revision would repea! the excess prof
it's taxes, increase the corporation tax
from 10 to Is per cent, increase the
taxes on cigarettes, repea; transpor-
tation taxes, reduce income surtaxes
and add sundry stamp taxes.
Under the treasury program Mr..
Mellon estimated that the government
can collect $3,935, 100000 from inter-
nal sources. This does not include
proceeds from the suggested increase
in postage rates and stamps on bank
checks.