Evening star., 1921-08-09
PRESIDENT WILL
CONFER ON TAX
Republicans of Ways and
Means Committee Take
Problems to Executive.

llcan members OF the Rouse ways anu
means committee will confer with
President Harding late today on the
whole general subject of tax revision.
Discussion. it is understood. Will Gen.
ter particularly upon what present
estimated extraordinary expenses can
be provided for through other means
than direct taxation.
Mr. Fordney hopes that 1t Will be
possible to take care of about three
quarters of billion dollars of such
expenses without provisions in the
new revenue law, thus saving, he
said, approximately SIS in taxes for
every man, woman and child in the
country this year. He is understood
to be particularly anxious that some
way be worked out to take care OF
the proposed S545,000.000 payments TO
the railroads. $100.000.000 TO the Ship
ping Board. and s1o0.oeoooo TOT re-
deeming war savings certifica te'
which fall due the last half OF this
fiscal year.
Want Freight Tax Repeal.
Repeal of the 3 per cent tax on
freight ON next January 1. with re-
tention of the per cent tax on pas
senger fares until January i. 1928
was discussed today by majority
tmembers of the House ways and
med MS Dut ucNi-
sion. Removal of the 10 per cent tax
on carbonated beverages also was
considered.
The committee turned from tax re-
vision to order favorable report on
Representative Longworths proposal
to continue the dye embargo after
amending the bill so as to make the
embargo period end next November
l27. when the emergency tariff ex-
pires instead of next March 27. as
originally proposed.
Favorable report, also, was ordered
on the bill of Representative Graham.
republican. Illinois, to impose duty
of 80 per cent on all A. E. F.. supplies
sold overseas and shipped back to
this country.
Loss in Revenue, $5O,OOO.OOO.
Loss of revenue in the proposed
changes ir the luxury taxes agreed
upon yesterday, it is estimated. would
be slightly less than s50.0OO.00O.
for repeal. are 10 per cent of the
amount by which the cost of wome n s
and misses hats, bonnetS and hoods
exceed SIS each; women's silk stock
ings in excess of 81 pair: mems
women's and children's shoes in ex-
cess of $40 a pair; mems and boys
silk stockings or hose in excess OF -
a pair; mems shirts in excess of $3
each: mems and boys hats in excess OF
S5 each; mems and boys caps in eN-
cess of 50 each; mems and boys neck.
ties and neckwear in excess OF w
each; mems, women's and children S
paiamas nightgoWnS and undergar-
ments in excess of 50 each klmonoS,
petticoats and waists in excess OF Sla
each: mems separate waistcoats in ex-
cess of SIS each, and lounging robes.
smoking jackets and similar leisure
apparel in excess OF $3.50 each.
Included in sporting goods, on which
it is proposed the tax would be cut
to half, are tennis rack. rs. nets
canoe paddles, canoe cushions, polo
mallets, base ball bats. gloves, masks.
protectors. shoes and uniforms. golf
bags, golf clubs, lacrosse stocks.
balls used in the following sports:
Base ball. foot ball, tennis, golf, Ia
cross, billiards and pool; fishing tack,
lie. billiard and pool tables. chess ana
checker boards and pieces. dice, games
and parts of games Except playing
cards and children's toys and games)
and all similar articles.
Agree to Cut Luxury Tax
Agreement was reached yesterday
among House ways and means COM
mittee republicans to eliminate the
soda fountain, ice cream and So
called luxury tax on wearing apparel
and a so per cent reduction in the
levy on sporting goods.
Further reductions are planned.
A 90 per cent cut in the transporta-
tion leyies, both passenger and
freight, was declared to be practl-
callV a certainty. Those members
who heretofore have urged immediate
repeal of all of these taxes were un-
derstood to be prepared TO. press
their point with the argument that
this could be done readily II repeal
of the excess profits and higher sur
taxes is delayed until next January l.,
as noW proposed.
The total loss of revenue involved
taxes was estimated at $3.50. 600, 900. or
less, it was claimed, than the loss
that would be entaiied this year
through making the repeal of the ex-
cess profits and higher income sur
taxes retroactive to last January I.
off of the levies on freight and pas
senger traffic would prove of real
helm to business through savings in
freight charges and added expenses
of travelling statesmen.
Not Yet Agreed ON Total.
Formal agreement among the ma
iority members as to the total that
will be absolutely necessary to run
fhe government this fiscal year has
not Vet been reached, and it was said
that further specific tax cuts might
await such an agreement. There also
was talk of conferences with Presi-
dent HardingSto obtain his advice in
the solution Of the major problems
before the committee.
Having been excluded from partici-
patton in the framing of the bill,
democratic members Of the Committee
are giving Independent study to the
revision question. Representative
Kitchin, the democratic leader, who
| is detained at his home In North
] Carolina by illness. has been kept