Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-08-02
PROPOSE NEW TAX
. SOURCES TO RAISE
FEDERAL REVENUE
House Ways and Means Body
Receives Recommendations
of Secretary Mellon.
FLAT LICENSE OF $40
ON ALL AUTOMOBILES
2-Cent Tax on Bank Checks and
Increase of First Class Post
age Rate to 5 Cents.
LEv AssocIateh pressl

WASiiiNGTON. Aug. IA tax of
. cents on bank checks. a fla, t-
cease tax Of SO on All automobiles.
irrespective OF COS, or horscpo,vor.
an increase of frst-class pos,apo
rates to ) cents ana au added levy
on cigars. tobacco ANA cigarettes are
understood to have been among tax
revision suggestions presented today
hv Secretary Mellon to the House
Ways aad Means Committee. meeting
IN executive session.
Other suggestions were said IN
have included:
y reduction of 30 per cent In trans
f"rtation taxes, both passenger and
freight, next year ana their cIimina-
t.oh tho year following
Repeal Of the taxes on soda foun-
tain drinks and ice cream
Repeal of the excess profits ,nx
ara elimination of the $4,000 cxcrnp-
,ion on corporations incomes.
Increase OF the normal income tax
On corporations from the present, 10
per cent to Is per cent
Elimination Of the income sur,ax
brackets above 40 per cent. with the
surtaN rates on incomes ranging from
5000 to s5o,0 increased
Raise $1,000. .000. .O0n.
The revenue bill. as revised in ac-
| cord with these suggestions. would
%" designed To raise approximately
$4,000 100000 next year. IL Was said
Mc!loas memorandum embodyins
Ills views was withheld but Chair
MAJ Fordncy promised 10 make IL
Eublic tomorrow.
Representative Garner. OF Texas.
ranking Democratic member OF the
committee. attacked the Treasury
Sccrciary's proposals. declaring that
| every one OF them constituted n
| classes to the masses"
Mellon was said to have estimated
government expenditures for next
year at si,675 100000. but Chairman
"ordncy said this was dependent
upon how much OF the $500. 900. 600
due the railroads would have TO he
| advanced out Of the Federal Treas
| ury. the cost of operating the govern
mcnt merchant fleet and the size OF
expenditures for the army ana the
navy
Customs Rcccipts sI5O. OOO, ,oGO.
Aside from the Internal taNeS the
Treasury Secretary VAS understood
10 have estimated customs receipts
FOR next ycar'at si5O.o0o. 900. and mis-
ccllancous receipts, including sal
wage, at s350,O0O.0OO. lie was said TO
| havo figured that the SlO license tax
| on automobiles would bring in $780,
Oo0,o and the tldcd levy on cigars.
! tobacco and cigarettes an additional
! So. .0O0.0h". Increased postal rates
have been estimated to yield another
| s75,OOO.O00. but the estimate as to the
| income from the proposed tax on
bank checks was not disclosed
The loss OF revenue through reduc-
tion OF the transportation taxes has
been placed at approximately $780,
| 600. COO
After the committee had heard Mel
| lon. Internal Revenue Commissioner
Blair Or. 7. S. Adams, Treasury tax
| expert, and other fiscal officers OF the
government, Chairman Fordncy re-
. itcratcd his statement OF last Satur-
| DAY that he believed the nations tax
bill could be cut SOUU,UUU,UUD, ana the
| government run for $4,000. 100000 n
| year.
"WufuI Waste Of Public Funds"
Representative Garner said that
government expenditures in excess OF
that sum next year would be n VIII
ful. wicked waste Of public funds,
wholly indcfensiblc.'
He asserted that the Federal es-
innate could he run for $4,000, 000, 600.
adding that Representative Madden. of
/ Illinois. the new chairman Of the
| Appropriations Committee. had de-
clarcd in an address that this sum
! should be sufficient.
Before the committee heard the
/ Treasury experts. the Republican
members were In conference with
Madden for u discussion of expenses
next year and the needs of the Ship
ping Board. the army and the navy.
Examination Of the Treasury officers
concluded the committees hearings
on the revision measure and the Re-
publican members plan TO get TO
work tomorrow on Il final draft of tho
bill. Chairman Fordncy reiterated
that the committee probably could
not complete the measure under three
/ weeks