South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-08-02
TREASURYHEAD
SUGGESTS new
.REVENUEMEANS
Would Tax Bank Checks.
Raise Stamp Rates and In
crease Tobacco Levy.
GARNER ATTACKS PLANS
Texas Scion Declares Change
Would Shift Burden to
the Masses"

y
WASHINGTON, Aug. IA tax ~
two cents on bank checks. a rat IL
cenSe Of $40 on all automobiles. r.
respective of cost or horsepower. an
increase Of hrst class postage rates
to three cents. and an added levy
on cigars. tobacco ana cigarettes.
are understood TO have been among
tax reveision suggestions presented
Monday by Sec'y Mellon 20 the house
ways and means committee
The treasury head also su EEestedf
Repeal Of the taxes on soda foun-
tain drinks and ice-crean: repeal OF
the excess profits tax and eIinlin-
alton Of the $4,000 exemption on
corporations incomes; increase Of
the normal tax on corporations from
the present 10 per cent. TO Is per
Ger cent. and elimination of the IN
come surtax brackets above 40 per
cent. with the surtax rates on in
comes ranging from $4,000 20 $50.
600 increased.
Raise Huge sum.
The revenue bill, as revised in ac-
cord with these suggestions. would
be designed TO raise Approximately
S4,O00,000.00 next year. IL was said.
Mr.. Melons memorandum embodv-
ing his views was withheld. but
Chairman Fordney promised 70
make it public Tuesday.
Rep. Garner Of Texas, the ranking
democratic member of the commit
tee. attacked Melons proposals de-
claring that every one Of them con-
sututed a shifting OF the tax burd-
ems from the classes 20 the masses"
Mr.. Mellon was said 10 have esti-
mated government expenditures for
the next year at $4,675.0O 600. but
Chairman Fordney said this was de-
pendent upon how much OF the
S5O0,000000 due the railroads would
have TO be advanced out OF the fed
eral treasury the cost of operating
the government merchant fleet ana
the size Of expenditures for the army
and the navy.
Estimates Revenue.
Aside from internal taxes. the
treasury secretary was understood
TO have estimated customs REGENTS
for next year at s45O.OO0.OC0 and
-
wage. at $3.50. 1000. 600 He was said
70 have figured that the $40 license
tax on automobiles would bring in
500, 1000, 900 and that added levy on
cigars. tobaccos and cigarettes would
bring in additional S25,O00.O0O. In
creased postal rates have been esti-
mated 10 yield another S75.OOO.OOO
but the estimate as 20 the income
from the proposed tax on bank
checks was not disclosed.
The loss OF revenue through re-
ductiOn Of transportation taxes has
been placed at approximately $50,
OO., 900
After the committee had heard
Mr. Mellon. Internal Revenue Com
missioner Blair. DIR. T. S. Adams.
treasury expert. and other fiscal Of
fice-s Of the government. Chairman
Fordney repeated his statement %
last Saturday, that be believed the
nations tax bill could be cur $500.
000 900 and the government run Tor
four billion dollars a year.
Would BE Waste.
Rep. Garner said that government
OK btAA4- vi - All excess OF ILaE SUM
next year would be a "vviIflI wicked
waste Of public funds. wholly inde-
feasible"
He asserted that the federal est
Adjustment could be run for 81. 500.
COO. 600 adding tha. Rep. Madden,
Of Illinois, the new chairman Of the
appropriation committee had decIar-
ed in an address that this sum
should be sufficient
Before the committee heard the
treasury experts. the republican
member were in conference with
Mr.. Madden for a discussion Of exc
penses next year and more rartI-uI-
arIy the needs Of the shiDrirz board.
the army and the navy. EZami1-
alton Of the treasury officers con-
cluded the committees hearings en-
the revision measure and -Ee IepuH- .
lican members plan r0 ra- ~ work
Tuesday on fnal drarr ~ The bin.
Chairman Foriney again declared
that the committee probably could
not complete the measure under
three weeks.