Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-07-23
four BILLION
FROM TAXES
Mellon and Fordney Confer
Over Bill to be Put
Through
ABANDON SALES LEVY
New Tariff Will Yield Only $780,
000, 000-Budget Totals $4,000, G0O,-
600 Changes Favored.

Washington, July 23.-Plans were
laid yesterday by Secretary Mellon
and Chairman Fordney, CT the Ways
and Means Committee and other
House leaders to raise $4,0O0,000,O00
in internal revenue taxes on this
years business, to be collected in
1922.
The S4,000,000,0O0 from Internal
taxes will cover about four-fifth of
the total expenditures in the next
year, which are expected to be not
less than S., 100000 and many run
considerably higher, if deficiency APP
preparations continue to be made.
When Secretary Mellon and Chair
man Fordney yet down - cases they
found that the Fordney Tariff bill
passed yesterday by the House will
not yield the $GOO,00O,0O0 expected
when the Ways and Means Commit
tee started to frame the measure. IN
stead, the bill will yield, according
to estimates by the Treasury Depart
ment experts, only $I50.000,000 or
150,0O0,O00 more than the existing
Underwood act.
That sum of $450,000,000 added TO
the $4,0OO,0O0,000 expected from m
ternal taxes, will be $550,000,0G0 short
of the minimum expenditure of So
000,O00,000 that is forecast. The of
ficials count on getting S500.000,00O
from postal receipts and the balance
from miscellaneous funds, such as
Panama Canal tolls q. The proceeds
Of sale of surplus war supplies.
The sales tax viii not be used to
help meet the gap. That was decided
by the Ways and Means Committee
before its leaders went to the Urea
sury Department to meet Secretary
Mellon. Senator Smoot, the leading
exponent of the sales tax idea, has
abandoned hope that it can be used
now. Chairman Fordney, who favors
such a tax. said today that the time
is not ripe for it. and it is stated
that the Ways and Means Committee
will devote no time to hearings on it.
Today's meeting at the Treasury
Department was arranged for the
purpose Of considering the various
sources of revenue that night be tap
ped in revising the present revenue
laws of the country. 1t is accepted as
settled that the excess profits taxes,
which have been yielding S45O,OOO,OOO
will be eliminated, and that IN lieu
of them the present tax OF III per
cent. on corporations will be lncreaS-
ed to Is per cent, and that the pre-
sent corporation exemption of 81
600, will be stricken out. The increase
of ) per cent. on corporation tax and
the elimination of the exemption Will
make up the S45O,OO0, O0O1ost through
removal Of the excess profits taxes,
according to the Treasury figures.
1t is believed to be almost certain
that the present high surtaxes, run
ming up to 70 per cent on the larger
incomes. will be reduced to such an
extent that none Will go above 40
per cent. In balancing the loss from
this reduction it may be necessary
to scale up the surtaxes on the small
er incomes. 1t is certain that the pre-
sent normal rate on the smaller IN
comes will not be increased, but 1t
NAV be that on incomes of $4,000 over
and above the exemptions, there VII!
be a slightly higher surtaX, gradual
" increasing as the incomes gro"
larger.