Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-08-07
WAYS AND MEANS COMMITTEE OF
HOUSE TO BEGIN DRAFTING THE
TAX REVISION BILL THIS WEEK
Measure Will Be Ready in
Ten Days, Unless an Un-
expected Snag Is EnCoun"
tered, Fordney States.
tBy The Associated Press.)

w NdollilS lOIl, Aug. AhdJOiAly
members Of the house ways and
means committee expect to get
down to the brass tacks of tax re-
vision next week.
Chairman Fordney said today
that the rewriting of levy provi-
sions in the 1918 law probably
would begin Monday and that un-
less an unexpected snag was en-
countered the new bill should be
ready in ten days. Leaders gener-
ally say house consideration will
require only few days.
Work Before Committee.
The work before the republican
committeeman is to determine the
ex ent OF the cuts possible and Just
where they are to be made. The
general belief seems to be that
the committee bill will propose re-
peal of the excess profits tax, but
the effective date remains to be
determined.
AS a substitute for the excess
profits tax it is planned to increase
the corporation income tax from
10 per cent to Is per cent and
also to repeal the $4,000 exemp-
ton allowed corporations. Chair
man Fordney said today, however,
that it might be necessary to
make some specific provision IN
the bill to relieve the burden it
has been claimed this would i'm
pose on the small corporations.
He also disclosed a proposal to
write into the bill a provision tax
ing the income of the so-called
personal service corporations, such
as architectural firms not incor-
porated, the same as the income
of other corporations. The SUI
preme court has held that the
present law is not applicable to
such concerns.
Mr.. Fordney also said it was not
proposed to relieve public service
corporations from a part Of the Is
per cent income tax provision of
the bill.
Income Surtaxes.
Aside from revision of these
levy sections, the minds of many
committee members are turned to
repeal Of the higher income sur
taxes, of all or part of the trans
portation taxes and of the foun-
tain ice cream levies. However.
the actual revisions are yet to be
agreed upon, with indications OF
some fights in the committee.
1t was estimated today by some
that immediate repeal of the
whole transportation tax. the soda
water tax and the higher surtaX-
es, together with the s55,000.00
which the treasury experts figure
will be lost this year through re-
peal of the excess profits taxes as
last January would approximate
the half billion dollar cut house
republican leaders insist can be
made in the tax levy.
Treasury Estimates.
With such reduction the taxes
to be paid this fiscal year would
approximate $3,O70, 900, 600 on the
basis of treasury estimates pre-
sented to the committee and
would include $235,000,000, esti-
mated back taxes. In addition to
this income the treasury figures
customs receipts under the pro-
posed new tariff law at $370,O00,-
600 and income from miscellane-
Gus sources at about $3.50, 100000,
making a total of $3.50, 100000
as against an outgo estimated in
the treasury statement at $4,554,-
900, 900.
Supporters of the tax cut de-
clare, however, that the apparent
deficit of 1854, 100000 would be
greatly decreased through addi-
tional collections in back taxes,
estimated at probably 100000
900, a larger income from miscel-
laneous sources and decreases in
expenditures, including those on ac-
count of the public debt and the
various federal departments.