The New York herald., 1921-08-10
$6OO,OO0,OOO TAXES
Will Be WIPED OUT,
HARDING ANNOUNCES
Statement Comes From the
White House After Con-
ference of Leaders
With President.
BILL TO BE SPEEDED
Will Be Reported Monday
and Passed by House, Aug.
20, According to Pres
ent Plans.
LEVY ON PROFITS TO GO
President Promises Coopera-
tion in Reducing Expendi-
tures--Some Repeats to
Date Back to Jan. '21.
LEVY ON PROFITS TO GO

Date Back to Jan. '21.
Special Despatch to The New York HERALD.
New York Herald Bureau,
Washington, ID. c., Aug. 8.
A reduction of s600,00o.000 IN Fed
eral taxes will be made in the revenue
revision bill now being framed by the
House Ways and Means Committee,
President Harding definitely announced
at the White House tonight after a
two hour conference with Republican
House leaders and Secretary of the
Treasury Mellon.
The new revenue bill, 1t was agreed,
will be framed to raise $3,075, ,000. 900
In the current fiscal year. The present
law would yield slightly in excess of
$4,000, ,o0o,o If kept In effect during
the current year.
1t also was decided that no new
taxes would be imposed and that the
only substitute for levies to be re-
TO 121a or Is per cent. in the fiat cor
poration income tax. Thus the new
tax ievies on automobiles, bank checks
and increased postage, suggested ty
Secretary Mellon, have been virtually
abandoned.
Tax reductions on which there was
agreement included:
Repeal of the excess profits tax, re-
troactive to last January 1, s450.o0o,- :
0oo
Repeal OF one-half OF the transporta-
ton tax, effective next January 4.
$3.50 900, 600.
Repeal of the higher income sub
taxes. retroactive to last January /,
100000 900.
Nuisance Tax Goes.
Repeal of the so-called nuisance and
clothing luxury taxes. s50.000.0o0.
Besides the so per cent. cut in trans
portation taxes. effective next January
/, the conference was said officially to
have agreed to have a provision in the
bill for elimination OF the balance of
these taxes on January /. 1929.
Reduction of the surfaces 10 a max
mum or 25 per cent. on January /, 1922.
and complete repeal of the transporta-
ton Icvies on January /. 1923. were sug-
Eested by Secretary Mellon. The maxi
mum srrtax rate is now SIS per cent.
To accomplish the tax reduction IL
was agreed that estimated expenditures
of the Government during the current
fiscal year will be cut $500. 100000. or
from $3.50 0.o0o.0 900, ss estimated by
Secretary Mellon. TO $4,000. 100000. In
addition a drive to collect s100, 100000
more back taxes than previously
planned and efforts to increase the
amount the Government will receive
from salvage Of war materials by $780,
100000 will be made.
President Harding expressed his oppo-
sition 10 the plan to delay the repeal of
the excess profits tax and the reduction
OF the high surtaxes until next January
1. stating that he believed IL would be
breathing the party's pledg, to make
these tax changes promptly IL the clint
nation and the reduction were not made
retroactive TO January l. 1921. II Is re-
Rarded as virtually certain that his view
will prsVail In the House and that busi-
ness will be relieved OF these burdens
during the present calendar year. al
though some OF the committee still favor
no repeating until January /. 1922.
Chairman Fordrey OF the House WAYS
and Means Committee gave assurances
that the revised tax bill would be re-
ported by Monday next. and expressed
the opinion that 1t could be passed
within a week
No Recess UntjI Passage.
Question OF Congress recess was
taken up at White House conference
In the afternoon. and Il Is hoped to be-
gin months saoation about the end of
next week. Republican heads OF the Sem
te end House Indicated that both would
ieman continuously In session until the
House has passed the tax revision bill.
representative Mondell said that II could
be put through the House by August 20.
or possibly a day or two later. The
President n. a conference to-day with
Senators Lodge and Curtis is understood
- have opposed a Senate recess before
passage OF the tax measure by the
House.
Very soon after the passage OF the
tax bill by the House." said Mr.. Mon
dell, Il believe we can stand In recess
for at least thirty days while the Sem
ate Finance Committee Is working on
the tax and tariff bills. This will be
expediting the public business. for IN
that way the Finance Committed can
work uninterruptedly and make greater
headway."
Complete enactment OF the farmers,
relief programme prior to the proposed
adjournment, passage by the House OF
the tax revision bill and OF n measure
20 extend the emergency tariff bill until
the permanent measure Is enacted were
said to have been insisted on by the
PRESIDENT. He also was said to have
expressed the desire for parsage of the
Administration bill TO fund the railroads.
debts to the Government. but was rem
resented as reluctantly willing to let the
railroad legislation go over until after
the recess. II assurances were given Of
Its enactment by early fall.