Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-08-08
c. 0. P. HOUSE LEADERS
TO REWR|TE REVENUE BILL
Confronted With Secretary MELONS
Frank Statement Of Governments
Fiscal Difficulties.
PLAN HALF-BILLION SAVING
Propose Repeal of Transportation,
Soda Fountain and Higher Sur
taxes and Repeal of Excess Prof
its Tax.
by Ralph II. Turner,

hitcu News StaT Correspondent.
w WASHINGTON. Aug. 7-Confront-
ed with Secretary Melons frank
statement OF the governments nsca,
difficulties and with the growing men
ace of Democratic attacks. Rcpuhli-
can members OF the House Ways and
Means Committee Will begin this week
the formidable task OF rewriting tho
Federal revenue bill.
y saving OF 100000 900 in taxes.
as urged by Republican Leader Mon
dell. VIII be attempted by repeal Of
tn" transportation tax. the soda toun-
tain taxes and the higher surtoNcs
ana by Topping on $55. 0O0. goo through
repeal OF the excess profits tax as of
January |. 1924. Opposition is de-
NciopinS. however. 10 the retroactive
repeal Of the excess profits tax
II this saving could ~ erected
in the manner suggested, the taxes u
be collected this year would total
SSo1o.oo0. 0O0. Treasury officials cSti-
mate that back taxes. customs re-
ceipts and income from miscellaneous
sources would raise Jhe total income
TO S3.79O.OOO. OON.
DcHcit of S16I.ONu.O n0.
If this were done. there still would
hc a deficit OF SI64.0OO.0Oo under the
Treasury's estimate OF expenditures
totnling Si.55t.000. 600 In reconciiinc
this deficit with the proposed revenue
cut lies the problem OF the Republic
can House leaders
The pp,imiste figure that the short
are can hc eliminated rs increased
collection Of back taxes and by fur
;hcr Slashcs in the expenditures OF
government departments. Murrinr
the program. however is a difference
OF opinion as 10 the date for repeal
ing certain taxes. II il les true that
no taxes can he repealed before Jan
nary. 1922. because OF the long time
required TO revise the present bill
then big business will continue to
pay the excess profits tax and high
surfaces during 1922
Opposition tn Plan Grows.
Opposition is growing to the orig
inal plan OF making the withdrawal
OF heavy taxes" retroactive to Jan
uary |, this year. This is too suG-
restivc OF favoritism Ia the wealthy.
say wary political leaders. iuaSmuch
as the lighter lcvics-thc nuisance
taxes which directly affect the ave-
age citizcu''-arc to remain ON
books until next year.
Meantime. Chairman Madden. OF the
House Appropriations Committee. is
preparing his report on the a 0OO,-
600 deficiency asked by the Stamping
Board. Herein one OF the first at
tcmpts will he made to effect a pro-
nounCod saving. for il is reported
that the House committee will recon-
mend not moro than $4,000, 600 for
the shipping Board.
President Harding when he re-
turns to Washington Tuesday. is en-
pcctcd To take Il hand i'm the tax Ill
l"mma and urge certain measures.
which he hopes will enable hie al =
minis tration to accomplish it's prom
| 'Scd tightening OF taxation.
The senate this week Is expected
| 20 pass the antibcer bill already
| passed by the House. Clever fiiibus-
| tcring has delayed action on this
| measure. but the "drys" have sur-
| ficicnt majority to pass 1t. and intend
| TO rally their forces this week. :.