Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1921-08-17
REACH DECISION
ON TAX PROGRAM
Harding and Republican Leaders
in White House Conference.
s6OO,OOO,OOO CUT IN TAXES
Small Increase in Corporation Tax Is
Only New Levy TO BE Made-5is
Slash In Government
Expenditures.

-NfNRNfNNf~~.
Washington, Aug. 1O.-TaXes will
be reduced SGOOOOO,OOO and there
will be no new taxes levied, except a
small increase In the corporation tax.
This was decided upon at a confer
ence az 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 COMMITTEES
had contemplated.
The tax program as decided upon
at the conference includes the fol
lowing:
Repeal OF the excess profits tax,
retroactive 10 January 1, 1921.
Cut Transportation Taxes.
Repeal Of 80 per cent of the trans
pOriation taxes on January /, 1922,
and the other 90 per cent on January
/. 1923.
Reduction Of the higher brackets of
income surtaxes TO - per cent, retro
active 10 January /, 1921, and TO p
per cent on January /, 1922. The nor
NAL income tax remains at S uer cent
and is in addition TO the surtax.
Increase I'm the fiat tax on corpora
tions from 10 per cent 10 121a 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 S3O0OOO.-
600 agreed upon for expenditures of
the federal government departments
during the present fiscal year. The
new cut Of S3OO.OO0OOO is In addition
to the cut Of Sll2OOO,OOOO made by
Charles G.. Dawes soon after he be-
came director of the budget. The
total cut i'm government expenditures
during the present year, therefore,
viii be S412 100000.
Other Reductions.
In addition 10 the cut In expendi-
lures, Il was decided that eXpendi-
lures on account Of the public debt
viii be reduced Sl7OOOO,OOO. This i-
cludes the refunding Of approximate
ly SlO0OOOO00 In War Savings
stamps and OF S7O,OO0OOO in treasury
certificates that fall due about the
first OF the year.
The remainder Of the reduction In
taxes will be made up by an increase
Of S1GO.OOOOO0 in salvage from sur
plus war supplies and materials and of
SlOOOOO.OOO in the collection of back
taxes.
The tax bin viii be completed BY
the house ways and means committee
next Monday and reported 10 the Re
publlcans of the whole house at a con-
ference next Monday night.
The committee decided that il would
amend the existing law and not at
tempt 20 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
20.
Definite Tax Program.
Formulation of a definite tax pro-
gram that has all of the branches of
the federal government behind il 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 S4,55O,OOOOOO
would be required for the ordinary ex-
penses OF the government during the
present fiscal year ending June 30,
1922. The house appropriations com
mlttee. however, refused TO accept the
figures and. after conference with Gen
ernl Dawes. Chairman Madden Of the
oppropriations committee submitted 10
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
S4O34 100000. of which amount So
o75 Gao 600 would be raised from cur