The New York herald., 1921-08-03
MELLON TAX PLANS
STIR HOSTILE WAVE
Storm of Opposition Aroused
in the Ranks Of Both Par
ties in the House.
Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau.

Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau.
Washington. u. r. Aug. 2.
A storm Of opposition against the tax
revision proposals OF Secretary OF the
Treasury Mellon arose in both Repub-
lican and Democratic ranks Of the
House to-day.
The Secretary's estimate that the
Government might spend $4,000. 900, 900
determination on the part OF House
leaders to enforce such rigid economy
that thfs amount must be reduced at
least $1,000. 900. 900. The opinion pre-
vailed that II the Government will cost
$4,000. .ooo.0 900 there would be little use
in trying to revise taxes.
Leading Republican members of the
Ways and Means Committee Joined with
the Democrats in denou.cing the tax
suggestions of Mr.. Mellon for a $40 fat
license tax on automobiles, two cent
stamp tax on bank checks and an in
crease of the first class postage rate to
three cents. 1t appears virtually certain
that none Of these proposed levies will
be included in the bill as 1t is finally
sent to the Senate. and 1t is probable
that none will be approved by the COM
mittee.
Some Republican leaders oppose the
Mellon plan OF reducing the surtaxes on
incomes above s5o.ooo. but increasing
the rates on incomes from Sc 900 to
s50,oec.
Some opposition was expressed to the
reduction of the transportation taxes,
but this proposal seemed to meet with
more general favor. as did the sugges-
tion that the excess profits tax be elm
mated. II having been taken for granted
for several months that the latter plan
would be followed. There was general
approval OF the Secretary's recommen-
dation for the repeal OF the Ice cream
and soda water taxes. Some opposition
was expressed to removing the $4,000
exemption In applying Is per cent. tax
on corporations profits.
Chairman Fordney (Mich.) stated that
despite the Secretary's outline of the
fiscal situation he believes the rev.
enue laws can be revised without I'M
posing any additional taxes except in
creasing the fiat corporation tax to %
per cent. He would repeal the excess
profits and some nuisance" taxes and
reduce the surtax rates all along the
line. His plan calls for a reduction OF
taxes about $500. o.ooO,ooo below the yield
OF the war revenue act now in effect
and is in favor OF cutting the revenue
bill down so that economy will be abso-
lutely necessary.
You know IL you have some money In
the Treasury that is not actually needed
somebody up here In Congress is always
trying to get 1t out" said Mr.. Fordney
The Ways and Means Committee Is
more or less ignoring the estimates OF
Treasury officials that $4,000, 900. 900 will
be necessary during the current fiscal
year. Various officials are being called
before the committee 50 that the 'irre-
ducible minimum" of each agency can
be learned
The American Automobile Association
declared II would fight the automobile
levy. stating that automobile owners now
are paying approximately $347, 100000.
Representative Bacharach IN. I'D. con-
sidered one Of the best informed men In
Congress on the tax situation, opposed
all the proposals OF Secretary Mellon
with the exception OF the repeal OF the
EXCESS profits.