The Hartford republican. (Hartford, Ky.) 18??-1926, 1921-08-05
PLAN half BILLION
TAX CUT; AUTO LEVY
Half Off Of Rail Tariff, Two
Cent Tax On Checks
Also Expected.

Washington. Aug. IA federal
tax on automobiles and reduction Of
transportation taxes by one-half for
the next year, and their repeal alto
gether year from now, were recon-
monded to the House Ways and
Means Committee today by Secretary
of the Treasury Mellon.
A tax revision program estimated
TO raise between $3,SOO, 100000 and
$4,6OO,OOO,OOO in revenue for the
present fiscal year and at the same
time reduce taxes $500, goo, goo was
suggested to the committee by Mr.
Mellon.
In addition To the automobile tax
and reduction of the transportation
taxes, the administrations program
outlined by the secretary included the
following suggestions:
Repeal Of the excess profits tax.
Reduction of our taxes on higher
incomes.
Increase of corporation taxes to Is
per cent if the capital stock tax is
retained and to 16 per cent if the
capital stock tax Is repealed.
Increase in taxes on cigarettes, CT
gars and tobacco.
Increase in first-class postage rates
making the rate on letters cents
and on postcards cents.
A tax of cents on checks.
Repeal Of the soda and ice cream
taxes.
Includes Roads And Ships
Mr. Mellon told the committee Il
was impossible to estimate now what
the running expenses Of the federal
government will be for the present
fiscal year.
The secretary included 100000
O0O for the railroads and S250,0OO,-
600 for the shipping board in his es-
innate of S4,OOO,OO0.00O The Treas
ury will know within a short time. he
told the committee, whether money
must be raised for the railroads and
also just how much the shipping
board will require Mr.. Mellon ex-
pressed the opinion to the committee
in executive session that the govern
ment would not need any money for
the railroads if the Winslow bill, au-
thorizing the railroad administration
thru the War Finance Corporation. to
fund the railroads debts is enac, ed.
and tnat Tho shipping board will not
need very large sum.
The committee was told by Mr..
Mellon that it could be reasonably
safe If it framed the tax bill so that
it would raise approximately $4,000
600.
The Secretary recommended that
the proposed federal tax on automo-
biles be graduated from a minimum
of $40 on small cars. Chairman Ford
ney said later that if the automobile
tax is levied it will carry a provision
requiring the Issuance of certificate
of ownership with each car to protect
the public from purchasing stolen
machines.
Plans SurtaX Cut.
The tobacco taxes should be in
creased to raise an additional $780,
100000 annually, Mr.. Mellon said.
Tho inaraaca will ha email
Mr.. Mellon recommended that the
highest bracket of surtaxes on i'm
comes be made 32 per cent. With the
normal income tax of s per cent add
ed to it, the highest tax on an in
come would be 40 per cent. Under
the present scheduli the 40 per cent
is reached on incomes of $4,000 a
year The present maximum in in
Acome taxes is 70 per cent.
I'VE will be able to cut taxes
$500, 100000 without any doubt"
said Chairman Fordney, of the COL
mittee, after the meeting with Secre-
tary Mellon.
The secretary told the committee.
Mr.. Fordney said, that the govern
ment received $3.50, 900, 900 from the
sale of surplus war materials. Mr..
Mellon said there might be more sal
wage than that, but placed the mini
mum at $3.50. 900, 900.
The tariff bill, It is estimated, will
raise a minimum of $3.50, zoo. 900. In
addition postal receipts for the yesr,
il is estimated will be S525, 900, 200. |
The new tax bill. therefore must
raise approximately s2.675, 900. 900
from internal revenue. Mr.. Fordney