The Washington herald., 1921-07-23
WAYS and MEANS
DROPS SALES TAX
IN REVISION PLAN
House Committee Decides
To Eliminate 1t from
Hearings.

A program of tax legislation in
yolyinr little, IL any. reduction but
a readjustment OF Federal taxation
began to assume definite form yes
terday at a conference of Treasury
officials and Republican members OF
the House Ways and Means Com
mittee.
Anon the developments were the
following:
sales tax-Republican members
Of the Ways and Means Committee
according to an announcement oy
Chairman Fordney, have determined
definitely to abandon further
thought of any sales tax and hence
will not waste any time on the SUD
ject at the hearings scheduled for
next week. The committee favors
in general the Treasury program for
tax revision.
TRANSPORTATION taxa proposal
that this tax be reduced by SO per
cent for a period Of one year and
eliminated entirely thereafter was
given favorable consideration.
Excess Proats Tax to Go.
Corporation income tax - Com
mittee members approved the Treas
ury recommendation for an increase
OF the corporation income tax from
10 to is per cent and the repeal OF
the present $4,000 exemptions for
corporations, the additional revenue
from these sources being expected
to offset the loss resulting from the
repeal Of the excess profits tax.
Individual income tax-The rec
omme ndation Of the Treasury for q
reduction of the higher surtaxes to
about 40 per cent will be followed.
1t appears to be accepted as a set
tied fact that the present normal
taxes on individual incomes cannot
be reduced.
Miscellaneous taxes-Despite pro-
tests from various groups most OF
the miscellaneous taxes will be re-
tanned. with the exception of a few
so-called nuisance taxes such as
that on soda water. The chief
problems remaining to be worked
out relate to new miscellaneous
taxes. which must be imposed in
order to bring the total revenue up
to the desired level. New taxes con-
sidered at the conference included
a Federal Automobile license tax, an
Increased cigarette tax, q tax on
bank checks and other new stamp
taxes.
$50, 0OO, 900 More From Tariff.
Customs revenue-Joseph s. Nc
Coy. actuary OF the Treasury De-
partment. told the conference that
not more than s150.oo0.0oo addf-
tional revenue can possibly be
realized under the new Fordney
tariff bill, or a total of s450. 900, 900,
as against 100000, 900 under the
Underwood law.
Necessary internal revenue -
Treasury officials stood by their
previous estimates that II will be
necessary to raise approximately
$4,000, 900, 900 by Internal taxation.
Date OF effectiveness OF new rev.
enue law-There has been no change
in the program to make the new
taxes effective on income of tho
| calendar year 1921 collected in 1922.
Final enactment of the revenue law
Is expected in October or November
Four Billion Internal Taxes.
The Treasury officials were over
their estimates as to the probable
expenditures of the government as
made public in a letter sent by Sec
retary Mellon to Representative
Fordney several weeks 40. II was
indicated that with new demands
for additiopal funds for the Ship
ping Board, the railroads and other
purposes, there was no possibility OF
reducing the necessary total to be
raised from internal taxation below
1000. 600. 900.
Representative Fordney is maxi
In" u known that no further atten-
-- 40 snles tax al
this item indicated that he regretted
i nave favored a sales tax, but
it is the conclusion of the members
of the committee that the time is
not ripe for it," said Mr.. Fordney
here fore we have decided not to
'"7st" ony time on the proposition
at the hearings next week"
Representative Tilson indicated
that he, as we'll as other members
of the committee, felt 1t was useless
going on with the discussion of q
sales tax