Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-09-09
Advises Senate Committee
to Make Excess Profits
Repeal Retroactive.
WOULD CUT IN HALF ALL
TAXES
Urges Manufacturers Levy ON
Cosmetics and Propric-
tary Medicines.
tHy Associated rrcss. !


the House tax bill recommended to-
day to tho senate Finance Commit.
tee by Secretary Mellon included;
Repeal o: the excess nroe,v
Effective as Of las, January /. instead
OF next January /
Retention Of all Of tho trans,or,,.
ton taxes FOR the calendar vcar 1920
put at half the prcsen, rates. instead
of. complete repeal as OF next Janu.
ry !.
Repeal Of tho capital stock TAR
effective next year; an entirely new
proposal
Reduction OF tho maximum income
S"rtax rate from - per cent to .,
per cent effective January I I.oo
instead o! To - per cent as provided
in the House bin.
retroactive Ia Last January.
An increase OF : per cent instead
o' -i-2 per cent in the normal cor
p"rah"n income tax. making the to
tai i" per cent. retroactive to las.
January l.
y manufacturers tax OF, cosmetics
ana proprietary medicines to replace
the present stamp taxes which were
eliminated by the House.
Retention next year of IN. t.x.s
on insurance premiums. bu, at one
half the present rates
With these exceptions. the .rrc.,
ury Secretary was Understood to have
approved the House measure win Il.
provisions for an increase of s5oo
.F1l t,.p
mes having net incomes OF $1,000 :,
year or less and $500 additional for
dependents: for decreased rates ON
sporting goods. yachts and furs. and
Tor manufacturers taxes on fountain
sirups and other ingredients OF soft
drinks in lieu of the present eo-cailcd
nuisance taxes
hrf"re Body ut Two Sessions.
Mr. Mellon vas before the commit
tee at two sessions. and there was a
general discussion of his rccom-
mcndations as we'll as OF the prob
'oie revenue needs Of the govern
mcnt tor this fiscal year The Sec
retary placed these al s4.034. .OOo. 600,
Oh the LaSis OF the reduction in cX-
penditurcs agreed upon AZ the White
iiouSc lax conference last August o.
and estimated that $500. coo. O00 of this
total would bc raised from nontax
sources. such as customs. salvage and
the like leaving S3.23i 900. 900 to
come from internal taxes
This total is sl3i.oO0. 600 less than
the estimated receipts under ,h.
iiouse hiii for this fiscal year. the
diHeicncc being accounted for
through repeal OF the excess profits
lax as OF last January !. II was TO
make UP the loss from the pronts
tax that Nj. Mellon proposed an ad-
diti"nal i-2 per cent increase in the
corporation income tax. retention OF
the transportation and insuracc pre-
fnium taxes and restoration Of the
taxes on cosmetics and proprietary
eGicines
Explains His Proposal.
The additional corporation income
tax is estimated by Treasury officers
TO yield approximately s2G0. 100000 :,
year. The transportation tax would
return sl@o.0oo.000 next year at half
the present rates, and the insurance
taxes and the lcvies on cosmetics and
medicines an additional $4,000 600
Explaining his proposal for a further
reduction OF per cent in the mani
mum income surtaN rates. Mr.. Mel
lon was said to have told thc com
mittce that the lower rate eventually
would return a greater yield To the
government than the - per cent rate
because additional money would be
diverted to active business instead "t
hcinG invested in tax-cXcmpt sccuri-
ties.
II was stated that there was no
discussion Of new sources Of taxation
and that none WAS recommended ly
Mr.. Mellon. who estimated that the
House bill as amended in accord with
his recommendations would meet the
needs Of the government, provided
the economies agreed upon AT the
White House conference We're cf
fcctcd. He was said To have told
the committee that he thought they
would be. and committee members
generally were reported as having
agreed with him.
AS to the authorization in the
House bill for the Treasury TO issue
sd00.00o,Go0 additional in short term
notes, il oas said officially th-: this
had no relation to any anticipated
deficit and was not wholly necessary.
as the Treasury had asked for II
merely with the idea OF having lit
tie more margin in funding victory
notes and certificates of Indebtedness
in.o ShOrt.tcrSl securities