The star-progress. (Opelousas, La.) 1917-1921, 1921-08-03
MELLON ADVOCATES
2CENT BANK CHECK
TAX 3 CENT STAMPS
Higher Smokes, Cheaper
Soda Other Tips to
House Committee
CUT ALSO URGED
Would Boost Income Rev
enues to Raise Needed
Four Billions

cents on banks checks, flat license
tax Of $40 on all automobiles, irres-
pective of cost or horsepower, an in
crease of first class postage rates to
3 cents and an added levy on cigars,
tobacco and cigarettes are understood
to have been among tax revision sug-
gestions presented today by Secretary
Mellon to the house ways and means
committee, meeting in executive ses-
sion.
other suggestions were said to have
included:
A reduction of so per cent in trans.
portation charges both passenger and
freight next year and their elimina-
ton the year following.
Repeal of the taxes on soda foun-
tain drinks and ice cream.
Repeal of the excess profits tax and
elimination of the $4,000 exemption on
GOEpOTdL1OAS IuCOl16S.
Increase of the normal income tax
on corporations from the present 10
per cent to Is per cent.
Elimination of the income surtax
brackets above 40 per cent with the
sur-tax rates on incomes ranging from
$4,000 to $4,000 increased.
The revenue bill, as reVisd in ac-
cord with these suggestions, would
be designed to raise approximately
81, OOO, 100000 next year, it was said.
Mr.. MELONS memorandum embodying
his views was withheld but Chairman
Fordney promised to make it public
tomorrow.
Representative Garner, Texas, rank
ing democratic member of the COM
mittee, attacked the treasury secre-
tary's proposals, declaring that every
one of them constituted, shifting
of the tax burden from the classes to
the masses"
Mr.. Mellon was said to have esti-
mated government ex penditures for
the next year at $4,675, 100000, but
Chairman Fordney said this was de-
pendent upon how much of the $780,
100000 due the railroads would have
to be advanced out OF the federal
treasury, the cost Of operating the
government merchant fleet and the
size of expenditures for the army and
navy.
Aside from the internal taxes the
treasury secretary was understood to
have estimated customs receipts for
next year at $45O,00O,OOO and miscel.
laneous receipts including salvage, at
$3.50, OOO, 900. He was said to have fig
ured that the $40 license tax on auto
mobiles would bring in 100000, 900
and that added levy ncigars, tobacco
and cigarettes an additional $25,OOO,-
900. Increased postal rates have been
estimated to yield another $75,000,00
but the estimate as 20 the income from
the proposed tax on bank checks was
not disclosed.
The loss of revenue through reduc-
ton of the transportation taxes has
been placed at approximately $780,
100000.
i After the committee had heard Mr..
Mellon, internal revenue commissioner
Blair, DR.. T. S. Adams, treasury tax
exparet and other fiscal officers Of the
government, Chairman Fordney reiter-
ated his statement of last Saturday
that he believed the nations tax bill
could be cut $5O0,OOO,OOO and the gov
eminent run for s4,OOO,OOO,OOO year.
Representative Garner said that gov
eminent expenditures In excess of the
sum next year would be a "wilful,
wicked waste of public funds, wholly
! indefensible.' He asserted that the
federal establishment could be run
/ for $500, 600, adding that Repre-
sentative Madden, Illinois, the new
chairman Of the appropriations com.
,mittee, ahd declared in an address
that this sum should be sufficient.
Before the committee heard the
treasury experts. the republican mem.
bers we're in conference with Mr.. Mad.
den for a discussion of expenses next
year and more particularly the needs
s.. of the shipping board, the army and
the navy.
Examination Of the treasury Off.
GERS concluded the committees hear.
ings on the revision measure and the
republican members plan to get to
work tomorrow on final draft of the
bill Chairman Fordney reiterated that
the committee probably could not com
plete the measure under three weeks.
/ In an economic sense that sway of
the Incas was perfect No subject
ever went hungry to his rest, nor felt
otherwise than to greet the new day