The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-08-12
REACH DECISION
ON TAX PROGRAM
Harding and Republican Leaders
in White House Conference.
$600,000,0o0 CUT IN TAXES
Small Increase in Corporation Tax Is
Only New Levy to Be Made-Big
Slash in Government
Expenditures.

be reduced $60O,O0O,0O0 and there
will be no new taxes levied, except
small increase in the corporation tax.
This was decided upon at confer
ence at the White House at which
President Harding, Secretary of the
Treasury Mellon and Republican
leaders Of the house agreed to slash
government expenditures and reduce
the tax burden even more than the
house ways and means committee
had contemplated.
The tax program as decided upon
at the conference includes the fol-
lowing:
Repeal of the excess profits tax,
retroactive to January /, 1921.
Cut transportation Taxes.
Repeal Of so per cent of the trans
pOrtatiOn taxes on January 1, 1922,
and the other so per cent on January
I, 1923.
Reduction of the higher brackets OF
income surtaxes to 80 per cent, retro
active to January l, 1921, and to .
per cent on January 1, 1922. The nor
llldl luCOI1G LAX Icu1dllS at . u6I cent
and is in addition to the surtax.
\ Increase in the flat tax on corpora
tiOns from 10 per cent to 1917 per
cent, instead of 10 per cent, as con-
templated by the ways and means
committee.
Definite announcement was made
after the conference that the pro-
posed taxes on automobiles and bank
checks and the increase in postage
rates recommended by Secretary Mel
Ion would not be adopted.
Reduction of the existing taxes
without imposing new levies was
made possible by a slash of $300,0OO,-
600 agreed upon for expenditures of
the federal government departments
during the present fiscal year. The
new cut of $3OO,0O0,0OO is in addition
to the cut of $112,OO0,OOOO made by
Charles G. Dawes soon after he be-
came director of the budget. The
total cut in government expenditures
during the present year, therefore,
will be $412,OOO,0OO.
Other Reductions.
In addition to the cut in expendi-
/ lures, it was decided that expendi-
lures on account of the public debt
will be reduced $17O,0O0,00O. This in
cludes the refunding of approximate
ly $100O00,O0O in War Savings
stamps and of $7O,OOOOOO in treasury
certificates that fall due about the
first of the year.
The remainder of the reduction in
81 taxes will be made up by an increase
of $16O,OOOOOO in salvage from sur
plus war supplies and materials and of
>$1000OO,000 in the collection of back
taxes.
The tax bill will be completed by
the house ways and means committee
next Monday and reported to the Re-
publicans of the whole house at con-
ference next Monday night.
The committee decided that it would
amend the existing law and not at
tempt to write a new bill.
The program outlined at the White
House conference calls for the passage
of a tax bill by the house by August
90
Definite Tax Program.
Formulation of a definite tax pro-
gram that has all of the branches Of
the federal government behind it ends
sharp conflict that has existed be-
tween the house Republican leaders
and Secretary of the Treasury Mel
Ion.
Secretary Mellon told the ways and
means committee that $4,550OO0,O00
would be required for the ordinary ex-
penses of the government during the
present fiscal year ending June 30,
1929. The house appropriations COM
mittee, however, refused to accept the
figures and, after conference with Gen
eral Dawes, Chairman Madden of the
appropriations committee submitted to
the ways and means committee the re-
duced estimates that were accepted at
the White House conference.
Under the tax program as accepted,
the total expenditures would be held to
$4,O34, 100000, of which amount $3,-
075,0OOO0O would be raised from cur
rent revenues