The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-09-14
MELLON FIRM
FOR Low TAX
ON VERY Rich
Secretary Of Treasury
Insists on Repeal of
Excess Profits
Faxes and Sur
tax on Incomes

0&t-SA AA4>
Washington, Sept. 8-Changes
IN the house tax bill recommended
TODAY to the senate finance COM
mittee by Secretary Mellon include
Repea2 of the excess profits tax
effective as Of last January 1, in
stead OF next January 1.
Retention of all Of the transpor-
tatsen taxes for the calendar year
922 but atShalf the present rates,
instead ef complete repeal as of
next January /.
Repeal Of the capital stock tax,
effective next year. an entirely new
proposal
Reduction Of the maximum in
come surtax rate from 63eper cent.
Ito 25 per cent, effective January
1922. instead of to 80 per cent.
as provided in the house bill.
An increase of S per cent. in
stead of q 1-2 per cent. in the nor
NAL corporation income tax, max
Ing the total Is per cent. retroac-
t5Ke to last January I.
A manufacturers tax, on cos
-hneties and proprietary. medicines
to replace the present stamp taxes
which were eliminated by the
house.
Retention next year of the taxes
on Insurance premiums but at one
half the present rates.
With these exceptions the treas
ury secretary was understood to
have approved the house measure
with its provisions for an increase
of $500 IN the exemption to heads
sof families who have net incomes
OF $4,000 a year or less and 5000
additional Tor dependents; for de-
creased rates on sporting goods,
yachts and fnrs and for other man
nfacturers' taxes on f gu mt a n
syrups and other: ingredients of soft
drinks in lieu OF the present So
called nuisance taxes.
Mr.. Mellon was before the COM
mfttee at two sessions and there
was general discussion of his, rec
oTnnendafioRss as well as of the
s probable revenue needs of the gov
eminent for this fiscal year. The
secretary placed these atss$4,034,-
oct, 600 on the basis of the reduc-
TSof IN expendll dlleures greed unon
al the White House tax conference
last August and estimated that
SSBe 80 0, 900 OF this total would be
raised from non-taS sources such
as customs, salvage and the like.
leaving 1929, 00.000 to come
from internal taxes.
This total is s134,000,0Ce less
than the estimated receipts under
the house bill for this fiscal year,
the difference being accounted for
through repeal Of the excess pro-
FITS tax of. last January L. It was
TO make up the loss from. the pro-
fits tax that Mr.. Mellon proposed
an additional 2 1-2 per- cent. in
crease in the corporation income
tax, retention Of the transportation
and Insurance premium taxes and
restoration of the taxes = on cos
metics and proprietary medicines.
IL
come tax is estimated by. the treas
ury officers TO yield approximately
s268. 900, 900 a year. Tire transpor-
tation tax would return $3.50, 0,000,-
600 next year at half the present
rates and the insurance taxes and
& levies on cosmetics and medicines
an additional $4,000, 900.
Explaining his proposal for a
further reduction of z per cent in
the maximum income surtax rates.
Mr.. Mellon was said to have told
the committee that the lower rate
would eventually return a greater
yield to the government than the
80 per cent. rate because, addition
al money would be diverted to ac-
tive business instead of being in
vested in tax exempt securities.
1t was stated that there was no
discussion of new sources Of taxa
tiea~ 1nd that none was recon-
,nended by Mr.. Mellon. who esti-
mated that the house bill as
amended would meet the needs OF
the government, provided the econ
omies agreed upon at the White
( House conference were effected.
AS to the authorization in the
house bill for the treasury to is
sue $500, 100000 additional in shor;
& term notes it was said officially
that this had no relation to any an
ticipated deficit aad was not Who'll
" necessary as the treasury had
asked for it merely with the idea
of having a. little more margin ir
funding Victory notes and certifi.
Gates of Indebtedness into shor
term securities.
Chicago. Sept. 1o.-wheat has
-.- hear, ON the l1nerade continuOuSlN