Every evening, Wilmington daily commercial., 1921-08-05
ASK HALF BILLION CUT
IN MELONS TAX LEVY
House Leader Insists Burden
on People of This Country
be lightened.

Washington. Aug. 5-lnsisting before
tho House Wavs and Means Committee
Yesterday that there should be no adult
lion of taxes, but Tightening OF the
burden. Republcan Floor Leader Mon
dell said.
ut is eatircly practical, in my OPINION,
n reduce the total tax levy by at least
$500. OOO. 900 and still meet all proper,
necessary. and essential expenses OF the
Government.
MIR Mondell had been preceded by
Secretary of the Treasury Mellon, who,
estimating that revenue from internal
sources for this fiscal year must be about
s.. $40. .0OO. 900, declared that II taxes
are 10 be reduced the executive end oil
the Government must make additional
cuts in expenditures of more than
$3.50. 900, 900
Arguing for reduction of the tax
levy. Mr. Mondell said, in part
''1'hc excess profits tax and the higher
income surtaxes should be repealed ahd
nothing substituted for them. The so
called .'nuisarce" taxes and the trans
portation tax. in whole or in part, should
bc repealed and some simple, easily un-
ders!ood tax-as, for instance, the pro-
posed ! pcr cent flat Increase on cor
porntion taxes -cracted to provide
funds lost by the repeal of these last
mentioned taxes,
Possibly some other one form OF
additional tax may be Gee ;sary, but
| | doubt il. In any event, we should
not. in my opinion, adopt the stamp
the bank check or other taxes ot tha'
character that have been suggested,
and | doubt also necessity or the ad
visibility Of the automobile tax.
People are expecting a real redtic-
ton lifting and not wholly shit,
lag Of the burden They are entitled
10 il. and their reasonable expectations
can be met and still fulfill all the neces-
sarv and legitimate obligations OF the
government.
NIr. Mellon said the s3,S30, ,000,0 900
revenue "can he safely reduced only
If. and to the extent that, further re-
ductionS aIe caforced in the spending
departments of the government.
This means. he continued, that
If additional taxes are to he avoided
there must be additional effective
cuts in ordinary expenditure OF more
than $3.50. 900. 900 Evea il such cuts
we're assured. the internal revenue
Weld for the year could not safely tie
permitted to fall below $3.50, 900, 600,
the estimated Weld under existing law. ,
Members Of the Ways and Mean
Committee, which was considering the
tax question behind closed doors, took
issue with Secretary Mellon estimates
of the expenditures and receipts Of the
Federal government for the current fiscal
wear. lie 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 S5, 900. .O00, 900 than his est i
mate Of 81 $50, 900, 600.
The Secretary admitted IN answering
nue ions. it is under .tood, that his
estin ste of expenditures was the
minimum" and not tho maximum
Members got the impression that he
did not include various claims against
Tho government such as are connected
With railroad control and the Shippicg
Board
Chairman Clark of the Interstate
Commerce Commission who followed
MIR Mellon said S175, 100000 is still
owing from what the commission is
due "a pav or the six months guaranty
No allowance was made, either, for
possible Withdrawals by the war Finance