The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-08-02
SUCCESTSAFLAT.
LICENSE OF $40
ONAUTOMOBILES
Two Cents on All Bank Checks
and an Added Cent to the
Letter Postage.
ADDED LEVY ON CIGARS.
TOBACCO AND CIGARETTES
Proposes Reduction on Both the
Passenger and Freight
Transportation.
tey The AssOcIated Press.l

WAShlNGTON, Aug. Ia tax OF
wo cents on bank checks, fiat license
ak of $40 on all automobiles, ire
pective of cost or horsepower, an in
rease of first class postage rates to
hree cents and an added levy (on
aigars. tobacco and cigarettes are
Understood to have been among tax
evision suggestions presented today
" Secretary Mellon to the house ways
and means committee meeting in ex-
eutive session.
other suggestions were said to have
-ncluded:
A reduction of fifty percent in trans
ortation taxes, both passenger and
reight, next year and their elimina-
lion the year following.
The repeal of taxes on soda foun-
ain drinks and ice cream.
Repeal of excess profits tax and
Elimination of the $4,000 exemption on
corporations incomes.
Increase of the normal income tax
IN corporations from the present ten
lercent to fifteen percent.
Elimination of the income surtax
rackets above forty percent with the
urtax rates on incomes ranging from
6, 900 to $50.000 increased.
The revenue bill as revised in ac-
ord with these suggestions would be
lesigned to raise approximately four
lillions OF dollars next year, it was
said. Mr.. Melons memorandum en-
odying his views, was withheld, but
chairman Fordney promised TO make
public tomorrow.
Representative Garner of Texas,
anking democratic member of the
committee. attacked the treasury sec
etary'ss proposals, declaring that
very one of them constituted a
shifting of the tax burden fiom the
classes TO the masses.
Mr.. Mellon was said to have esti-
mated government expenditures for
next year at $4,675, 100000. but Chair
nan Fordney said this was dependent
lpon how much Of the $5OO.ooo,o0O due
he railroads would have to be ad-
anced out of the federal treasury,
he cost of operating the government
merchant fleet and the size of ex-
oendutures for the army and navy.
Aside from internal taxes, the treas
ury secretary was understood to have
stimated customs receipts for next
ear at $3.50. 900 900 and miscellaneous
eceipts. including salvage at $3.50, !
100. He was said to have figured that
he $40 license'tax on automobile would
BRING in s100.000,000 and that added
evy on cigars, tobacco and cigarettes
an additional s25,000,00 Increased
postal rates have been estimated to.
ield another $75,OO0,OOO but the esti-
mates as to the income from the pro-
osed tax on bank checks was not dis
closed
The loss of revenue through. reduc-
/, ion OF the transportation taxes has
'5een placed at approximately $3.50,
5000,
After the committee had heard Mr.
Mellon, Internal Revenue Commission
,sr Blair, DIR. T, S. Adams. treasury tax
Expert, and other fiscal officers of the
government. Chairman Fordney reit-
rated his statement OF last Saturday
hat he believed that the nations tax
ill could be cut $50o,000,000 and the
government run for four billion a year.
Representative Garner said that gov
ornment expenditures in excess of that
s,um next year would be "a wilfull,
wicked waste of public funds. wholly
ndefenslble" He asserted that the
ederal establishment could be run for
$500 600 900 adding that Representa-
i've Madden OF Illinois, the new chair
man OF the Appropriations Committee,
nad declared in an address that this
sum should be sufficient.
Before the committee heard the
treasury experts. the republican mem
',f,rs were in conference with Mr. Mad
den for discussion of expenses next
year and more particularly the needs
~ the shipping board, the army and
be navy.
Examinations of the treasury Off
cials concluded the committees hear
ngs on the revision measure and the
epublican members plan to get to-
work. tomorrow on final draft of the
IN. Chairman Fordney reiterated
hat the committee probably could not
complete the measure under three
-sAAirs-