Omaha daily bee., 1921-07-23
Republicans
To- Abandon
Sales Tax
No Material Reduction But
General Revision of Federal
Taxation Mapped Out
By House Committee.
May Force Sheriff To Act Levy On Incomes To Stay
By ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.

BY ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.
Washington, July "a program
cf tax legislation involving little, if
any, reduction, but a readjustment
of federal taxation began to assume
definite form today at a conference
of treasury officials and republican
members of the house ways and
means committee.
Among the developments were the
following:
Sales Tax-Republican members
of the ways and means committee,
according to an announcement by
Chairman Fordney, have determined
definitely to abandon further
thought of any sales tax and hence
will not waste any time on the
subject at the hearings scheduled
for next week. The committee is
favorable, in general, to the treas
ury program for tax revision.
Transportation Taxa proposal
that this tax be reduced by 50 per
cent for a period of one year and
eliminated entirely thereafter, was
given favorable consideration
Corporation Income Tax-Com-
mittee members approved the treas
urv recommendation for an increase
of the corporation income tax from
10 to IS per cent and the repeal OF
the present $1,000 exemptions for
corporations, the additional revenues
from these sources being expected
to offset the loss resulting from the
repeal of the excess profits tax.
No Reduction Possible.
Individual Income Tax-The
recommendation of the treasury for
reduction of the higher surtaxcs
to about 40 per cent will be followed.
It appears to be accepted as a set
tied fact that the present normal
taxes en- individual incomes cannot
be reduced.
Miscellaneous Taxes-Despite pro-
tests by various groups, most OF the
miscellaneous taxes will be retained
with the exception of a few socalled
nuisance taxes, such as that on
soda water. The chief problems re-
naming to be worked out relate to
new miscellaneous taxes, which must
be imposed in order to bring the total
revenue up to the desired level New
taxes considered at he conference
included a federal automobile license
tax, an increased cigaret tax, tax
en- bank checks and other new stamp
taxes.
Customs Revenue--Joseph S. Nc
Coy, actuary of the Treasury depart
ment, told the conference that not
more than $15O,00O,OOO additional
revenue can possibly be realized I'M
der the Fordney tariff BILL or total
of $450,000,000 as against $300,000, 900
under the Underwood law.
Necessary Internal Revenue -
Treasury officials stood by their pre-
vious estimates that it will be neces-
sary to raise approximately $4,000
100000 by internal taxation.
Date of Effectiveness of New Rev.
enue Law - There has been no
change in the program to make the
new taxes effective on income of the
calendar year, 1921, collected in 1922.
Final enactment of the revenue law
is expected in October or November.
Time Not Ripe.
The treasury officials went over
their estimates as to the probable
expenditures of the government as
made probable in a letter sent by
Secretary Mellon to Representative
Fordney several weeks ago 1t was
indicated that with new demands for
additional funds for the shipping
board, the railroads, and other pur-
poses, there was no possibility of re-
ducing the necessary total to be
raised from internal taxation below
S4,000,000,000. Representative Ford
ney in making it known that no
further attention will be given the
sales tax at this time indicated that
he regretted such action.
II have favored a sales tax, but it
is the conclusion of the members OF
the committee that the time is not
ripe for it" said Mr.. Fordney.
therefore we have decided not to
waste any time on the proposition at
fhe hearipoc peyt u,aa1rO 4