Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1921-08-12
-FOUR BILLIONS IS i
j. 6. TAX FOR 1922
Zen Changes Are Asked by Sec
rotary Mellon.
WOULD DROP ICE CREAM LEVY
Also Levies on Certain Other luxuries
and clcthing-Must Have Reduc-
ton in Government Expendi- u
lures, He Tells Committee.

Washington, Aug. 5.-The cost OF
Hinning the United States government
5or the fiscal year of 1922 will be
A,550,000,0O0, according to revised es-
Inmates placed before the house ways
and means committee by Secretary
Mellon.
He estimated that receipts would
9ield S350,G00,00O and customs $37O,-
100000, leaving $3,S30,000,O00 to be
Baised in taxes.
For the fiscal year 1922 the present
law would yield $3,S75,OO0,OOO in III
aernal revenue and customs. The re-
jsised laws would yield $3,935, OOO.OO
Mellon said, if the revision of the cor
pOration, income and excess profits
lsaxes is made effective January l,
1921.
'sThese figures do not include the
estimated receipts from the suggested
E-cent tax on first class mail matter
and 2-cent tax on bank checks" he
said. 'These, it is estimated, will
tgield Silt, 100000 a year, or $72,OOO,-
900 from stamps and $45.0OO,OOO from
bank checks"
New Taxes Needed.
With these estimates Secretary Mel
ln also submitted his recommends
zion for tax revision.
'.This revenue" said Mellon, SCAN
be reduced with safety only IL, and
30 the extent that, further reductions
are enforced in the spending depart
Ments of the government"
Secretary Mellon estimates an in
creased revenue from the new tariff
Jaw. if enacted by December next, of
S70,000000 for the six months Of the
6scal year 1922, and $150,0OO,OOO in
she fiscal year 1923.
Urging a change in the income tax
law because of dwindling receipts from
.dhe higher surtax rates, the secretary
said the revenue from the surtaxes In
1921 will be $50O,OOO,0OO0 and the call
srom the surtaxes above per cent,
which he recommended as the maxi
num- will be less than $1OO,OOOOOO.
A small immediate loss will result
5rom the change, but in the end they
will be heavier. Mr.. Mellon suggested
that the normal and surtax combined
should not exceed 40 per cent for 1921
and SO per cent thereafter.
Mellon suggested as a substitute for
the excess profits tax, rapidly beconl-
ing unproductive, an increase of per
cent in the present 10 per cent cor
eoration income tax rate, and repeal
Of the $1,000 personal income tax ex-
smption.
Collection of back taxes are esti-
mated TO yield $235,000,O0O in 1922
and 1885, 100000 in 1923, but it might
be possible to secure an additional
S1000O0,000 from this source in 1922,
he admitted.
He recommended reduction of one
.Ralf of the freight and passenger
transportation taxes by January 1,
1922, and repealed totally by January
1, 1928 The loss of revenue would
be S62,OO0.O00 in 1922 and $1S0,000,000
On 1928.
The ice cream and fountain tax
should be repealed, as also the excess
price taxes on wearing apparel. The
loss would be less than $25,000,000.
Tax is Evaded.
He said the tax on perfumes, cos
metics and proprietary medicines is
svaded and is irritating and should be
switched upon the producer or i'm
porter.
The secretary recommended dou-
Sling the present rate of documentary
stamp taxes, increasing the revenues
By $30,000,000 for the fiscal year 1922
and $70,O00,000 for the fiscal year
1923.
He suggested the 2-cent stamp taxes
On each sight or demand check and a
tax of 1 cent on first class postage as
a convenient method of taxation"
An annual federal license tax upon
motor vehicles averaging $40, graded
according to power, would yield $780,
100000 in 1922.
He suggested an increase in tax on
cigarettes from So to So a thousand
and slight increases on other tobacco
products to yield additional revenue
of S25O00,O00 in 1922 and $57000,000
in the fiscal year 1923.
Secretary Mellon said there would
be relatively small payments to rail-
roads i'm 1923 as against the $545,OOO.-
600 payments of 1922.