The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-03-18

TO BE- READY
FORCONCRESS
Repeal of Excess Profits Tax is
Said to Be Practically
Assured.
FOR A SALES TAX
Investigating Revenue Produc-
ing Qualities of Tax on
LuxurieS.
(ey The Associated Press)

WASHINGTON, March 17.-Formu-
lation Of treasury policy on tax revi-
sion has been started and probably will
be ready for submission to congress
when it convenes April IL in extra ses-
sion. Treasury experts have been en-
gagged for some days in making a sur
vey of revenue sources and the extent
to which each may be tapped in
bringing money into the government
vaults.
It was indicated today that while Sec
retary Mellon had not taken a public
stand with respect to the question of
whether revenue or tariff revision should
have precedence in conference, he de-
sired to have the necessary data on the
2ax subject ready for use should con-
gressional committees call. Mr.. Mellon
said that no decision had been reached
on any questions pertinent to the forms
of new tax laws, but internal revenue
experts were understood to be preparing
to make recommendations on some
phases of the important problem.
Former Secretary Houstons views
were that taxation measures should be
considered ahead of all other legislation
because of the effect on business Of
changed tax laws. There has been no
Indication of a change in policy in that
respect because few of she officials con-
nected with the taxation side of the
treasury have been relieved.
Among the questions into which the
experts have been delving is that of q
sales tax which has threateASS several
times to cause a rumpus among members
of congress whose opinions vary widely.
The treasury expects to have complete
statistics prepared soon. showing the
"a axnactad from S1Ich
tax together with data concerning its
effect on prices. Changes in the ra&es
on larger incomes and increases in eX-
emptions also are under consideration
with a view to determining the aggre-
gate amount of revenue. There has
been an insistent demand for raising the
exemptions of the lower salaried, now
placed at $4,000 for married men and
$4,000 for single persons.
Repeal of the excess profits tax which
has been particularly odious to busi-
ness, appears to be assured. Recommen-
dations to- that end were made by Sec
Glass and Houston. and Mr..
MELONS attitude is understood not to
be different although it has not been
publicly stated This tax revenue, Of
fcials assert, has been difficult of col
lection and has acted as a brake on COM
nsercial development.
IN addition to the sales tax, the ex-
perts are Investigating the revenue pro-
duoing qualities of higher luxury taxes.
Most treasury officials who have studied
the luxury taxes believe that many Of
those row in effect should be repealed,
those similar to the soda
fountain drink levies. The expense Of
collecting such taxes it has been said,
has run out of all proportion to the
revenue received in the last two years,
while the public was compelled at the
same time to pay the amounts pre-
scribed by law.
One of the main points in the efforts
Of the treasury experts now is to avoid
involved and TECHNICAL taxation methods.
Higher officials in the department hold
that enforcement and collection of
taxes under intricate laws is much more /
expensive to the government and not
as productive as simple and practical
means of&asseaang the taxes.