Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-10
'@00,OD0,DD0 CUT
IN TAXES PLANNED
Decision Made at White House
Conference on New
Revenue Bill
ARMY AND NAVY TO SUFFER
Nv the Associated Press

Washington, Aug. 10I - President
Harding having intervened to straighten
out tar revision differences between
leaders OF the House Of Representatives
and Treasury officers, Ways and Means
Committee Republicans set 20 work t.
draft a revenue bill to yield 5000
600 900, or approximately 5000 .OOO, 600
less than had been suggested by Sec
retary Mellon.
This total was agreed upon last eve
ming at a White House conference at
tended by Secretary Mellon. Sneaker
Gillett, Representative Mondcll, OF
Wyoming. the Republican House leader
Means Committee. and other prominent
House Republicans.
At the same time decision was reach
ed. It was stated officially, to cut $500
600, 900 from estimated expenditures for
this fiscal year. leaving the total Mt
81, ,034. 900. 900, as against the Treas
ury's estimate of S4.554, OO0.O This
would be accomplished. Il was explain
ed, by somewhat drastic slashes in es-
timates for the War, Navy and Agricul,
ture Departments. the Shipping Board
and railroads and the refunding Of
$170 0O0. 900 of disbursements on ac-
count Of the public debt
Chairman Fordney said his commit
tee probably could have the new revenue
bill ready for consideration by con-
ference Of House Republicans next Mon
day. and leaders generally thought the
measure probably could he passed by
the House by August 20. pcrmitting
Congress to recess on that date for a
month.
Measure to Have Precedence
Under the program as now planned.
the Senate Finance Committee will
work on the tax bill during the recess
with view to having il ready for
Senate action when Congress recon
vened. This would permit Of final pnss-
age of the tax bill ahead Of the per
manent tariff measure. n program, II
was eKpla incd which the President de-
sired to have carried out.
The great bulk of the taxes which
II il proposed to repeal would come of
as of last January ]. these being the
excess profits tax. estimated Mt $3.50
600. 600. and the income surtax brack-
cts above 20 per cent. which are esti-
mated to yield 500 900 900. After this
year the income tax would be reduced
to % per cent. entailing further reve-
nue. loss next year. Repeal of the other
taxes proposed-one half of the trans
portation taxes and the o-Called nuiS-
ance and luxury clothing levies-woud
become effective next January l. 1928
The proposed increase in the levy Of
the incomes Of corporations also would
be made retroactive to last January |
The White House agreement was for
an increase OF 2l2 per cent instead of
b per cent in this tax. making the total
121a per cent, estimated to yield S125,-
600, 900.
Outstanding Features Of Bill
Under the agreement reached the new
revenue law will contain the following
outstanding provisions:
First. Repeal OF the excess profits
tax ms of January l, 1921, making
the law retroactive.
tax brackets. those above 80 per
cent. as of January l. 1921. and the
remaining. above 25 per cent, as Of
January !. 1922.
Third. Reduction of the transpor-
tation tax by one half, as Of Jan
uary l. 1929. and entirely, as of
January l, 1923.
Fourth. Repeal OF the so-called
soda water tax, the so-called luxury
tax Of clothing. and Of other "nuis-
ance" taxes.
With few exceptions there will be no
new taxes levied. under the agreement
srrived at. outside of an increase of the
fat tax on corporations to 1917 per cent
and possibly other minor taxes under
consideration. The fat corporation tax
agreed upon represents a reduction by
one-half in the increase originally con-
templatcd. 1t Is at present 10 per cent,
and some members of the Ways and