The Wilson times. [volume] (Wilson, N.C.) 1896-19??, 1921-08-12
CUT IN TAXES AS
n WAS OUTLINED
BY THE PRESIDENT.
'MA FIRST CUT IN MARCH
Mindful of the Opinion That
Demands That Expenses be
Cut the Administration Has
Outlined a Program Which
Represents a Reduction of
Six Hundred Million.

(By David Lawrence.)
Copyright, 1921, by The Daily
Times.)
Washington, Aug. 1O.-The Amer
ican people will have their first cut in
taxes since the European war when
they make out their income tax re-
!, turns next March. President Harding
and Secretary Mellon as well as Re-
publican leaders in Congress mindful
of the overwhelming opinion which
demands that government expenses
be cut and taxes reduced have outlin-
ed program which represents net
reduction of $6OO,O0O,OOO in the
amounts that must be raised by di-
rect taxation.
Mr.. Harding and the Secretary of
the Treasury stood in the Presidents
Room of the Executive Offices and
outlined to the correspondents the
nature of the changes in the tax pro-
gram. Chairman Joseph Fordney of
the Ways and Means Committee and
Republican leader Frank Mondell also
stood by ready to answer questions
and explain the figures. The picture
was one of absolute informality the
President having asked his colleagues
to, stay in the room with him and
submit to Interrogation so that the
public might have no misapprehen-
sions about the tax program.
In order best to understand the
changes that have been made the fol-
lowing table summarizes the data
given out by the President and the
Secretary Of the Treasury.
= w. : sail ~ ~ - ~s1* A'ss~
Amount estimated two weeks ago
by Secretary Mellon as necessary
to run the govern
ment .......... .$4,554,O00 900
Amount now officially
estimated as budget $4,O34,000,0 900
Net reduction in esti-
mates .......... $500, 900, 900
How was that $500, ,o00, 900 cut in
estimates accomplished? The Presi-
dent simply insisted that the vario-
GUS government departments cut
their requests for money still fur
ther than they have. Furthermore
certain sums which were falling due
this year and which were expected to
be paid out of new revenues will be
deferred. So the analysis of the
$500, ,O00, 1000 reduction in estimates
is as follows:
Amount by which 60
vernment will reduce
their appropriations $3.50, 900, 900
Amount of floating
debt to be deferred $4,000, 900
Total ...............$ $500, 900, 900
The floating debt referred to above
consists of about $100,000,0O0 in
war saving securities and $70,OOO,-
900 in what is known as Pittman Act
certificates. AS matter of fact this
total of $17O,000,O00 was incurred
during the war and is to be regarded
as a part of the war debt. There
wasn't any more reason in Mr.. Mel
Ions opinion for paying that $780,
100000 out of new revenues than
paying off sLiberty Bonds. OF course
such part of the $170, 900, 900 as falls
due during the year will be paid for
out of sinking fund or other avail
able funds. 1t isn't such a large
amount but that 1t can be handled
satisfactorily. So 1t was cut out of
the estimates of new revenue.
The most important announcement
made was that the actual tax bur-
den Of the people would be $3,075,-
100000. This is about $500, 600, 900
less than 1t has been under the pres
ent law. The following analysis shows
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