Bisbee daily review., 1921-08-05
TAX ISSUE IS PUT. UP TO CONGRESS

UP u CUNGRE55
 CONTINUED FROM. FACE oNE) departments of the government as to their actual expenditures of the year, of cuts in expenditures already re- ported to the treasury, and of annual appropriations for this year already made by congress.
 Predicts Big Increase
 Ordinary expenditures were placed at $4,002, ,657 1852 with an additional $551, ,354, ,S65 public debt expenditure fixed by law The ordinary outgo in cludedA s545, POGO for payments to the railroads on account of the trans portaticn act, and federal control, but it was explained that no allow ance had been made flor possible cash expenditures resulting from withdrawals by the war finance cor poration which has cSedit balance of about $400,000,000 with the treas ury and may draw down it's balance at least temporarily in connection with the railroad financing proposed under pending legislation
 On the basis of the existing rev enue law, Mellon figured that the excess of expenditures over receipts would be $336, ,G00eOO. His estimate of total receipts was S4,217, ,643, ,000 based on the present law, or approx imately one and a quarter billion dol lars less than received last year. A further shrinkage of returns next year was forecast even on the basis of a law revised to meet treasury suggestions.
 Calculating on the basis of the pro posed revision of the corporation in- come and excess profits tax being made effective as of last January l, the secretary estimated receipts for this fiscal year from internal taxes at $3,567 100000, including $S75,00O,- 900 from individual incomes, S657,- 900 900 from corporation incomes and S413, 100000 from profits taxes. Back taxes-income and profits, would ac- count for S235 100000 of the total and the remaining S1,3S5, 100000 would come from miscellaneous taxes.
 Explains Proposals
 On the basis of a revision of the excess profits and corporation income taxes becoming effective as of next January l, corporation income taxes were estimated at s456,000.000 and ex- cess profits taxes at $669,000,00U, $3.620, 100000, the estimates being made on the assumption of other changes in the law in line with sug- gestions pCesented to the ways and means committee last Monday but not including the once cent increase on first. class mail, estimated to yield about $72,000,000 annually and the two cent tax on each bank check, es- timated to return $45,000,000 annually.
 Revisions on which the estimates were based, it was explained, assum- ed the following changes:
 Increase in the corporation income tax to 15 per cent as of January 1, 1921, Cor January l. 122), and the re- peal of the $2,OO0 exemption.
 Repeal of the excess profits tax, as of January l, 1921, Cor January l, 1922).
 Increased collections of back in come and profit taxes.
 An increase on the tax on cigarettes and smoking and chewing tobacco.
 Repeal of the transportation tax on freight and passengers; the tax to be reduced one-half, January l, 1922, and repealed January l, 1923.
 An increase of the documentary stamp taxes, by approximately duo bling the present rates to yield an ad- ditional $3O,0OO,0OO
 The license tax on motor vehicles, averaging about $10 apiece and to be graded according to power.
 Repeal of the tax on ice cream and fountain drinks as of January l, 1922.
 Revision of the income tax rates with maximum surtaX rate reduced to 32 per cent.
 Counting on Tariff
 Repeal of the so-caljsd ;uXury taxes on wearing apparel, carpets, rugs, trunks, valises, and the like.
 Mellon informed the committe 2 that the estimates of ail revenues under the revised law assumed that a more productive tariff law would be enacted capable of yielding about $70,000,000 additional revenue for the fiscal year 1922, (the present fiscal year), and $150,OO0.OOO additional for the fiscal year 1923 The $70,000,000 estimated additional yield from the source for this fiscal year is predicat- ed on the new tariff law becoming ef- fective January 1. 1922. The yield under the present law was placed at $500, 900. 100000.
 Mellon's statement today suggested