New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-27
Goes
Over Tax Bill
With Cabinet
Legislative Program Likely
to Comprise Removal of
Excess Profits Levy and
Diminution of Surtax
Mondell Also Is Heard
President Expects House to
Submit Measure to the
Senate Before August 6

WASHINGTON July 26-Modihca-
tions in existing taxation laws and a
discussion of the best methods of re-
cucing government expenditures were
gone into at length at to days meeting
Of the President and his Cabinet. Prior
to the meeting the President went over
the tax legislative situation with Re-
publican Floor Leader Mondell
1t was intimated at the White House
after the Cabinet meeting that the
legislative program will comprise a re-
moval of the excess profits tax and Il
diminution of the surtax. An ATTEMPT
will be made, as reported yesterday, to
restore the three-cent postage stamn on
first class mail, chiefly to bring in rev
enuc to meet the deficit in the Post
office Department, caused by the loss
on the parcels post branch.
1t is unlikely that the Administration
VIII recommend consumer and pro-
queer tax, but through q careful re-
auction of expenditures in government
operation it hopes to bring about tax
reduction. The President regards with
favor proposition to inaugurate Fed
eral tax on automobiles throughout the
country. in connection with good roads
legislation and Federal aid in their up-
Keep. The plan. as proposed, calls for
me lndlvldual motorist paying the tax.
~ Is the impression of the President
that the House will submit tax bill to
the Senate no later than August 6,
3maginings of the most optimistic
legislators
There is a growing disposition mani
test IN the House to avoid sitting dur
ing the month of August and prepon-
derating sentiment in favor of a recess
as soon as the House passes the
revenue bill. The Senate Finance Com
mlttee could then take UP the bill for
study and report it out, perhaps late
in Septe mber.
President Opposes Recess
The President makes no secret If his
opposition to recess in the House
prior to the passage of tax revision
legislation and he told Representative
Mondell SO at to-day's conference. Mr..
Mondell believes that the House will
pc through with such legislation by
September 1, when there will be plenty
OF time for recess. He favors re-
ducing ali taxes as far as possible and
believes that substantial reduction all
along the line cam be made under the
plans proposed by the Republican
leaders.
at is my belief" said Mr.. Mondell.
chat we can reduce taxation by at
least 100000 a year, without i'm
pairing the efficiency of the govern
ment. The so-called nuisance taxes"
on soda water. perfumes. etc, can
easily be done away with without loss
of revenue. There should be a reduc-
ton also on the tax on transporta-
ton"
He declared himself as opposed to a
tax on bank checks, but favored a
cent stamp on first class mail in place
of a cent stamp.
The sales tax as a metho cd of raising
any part of the four billions of revenue
needed by the Federal Government
next year is opposed by members
of the House Ways and Means Commit
tee, Chairman Fordney said to-day at
the opening of the revision hearings.
Only four days have been set aside
for the hearing and Mr.. Fordney sug-
gested that witnesses refrain from con-
suming time ia discussing such q tax.
Turnover Tax Urged
imposition of purchase tax" re-
peal Of the excise taxes on candy and
bottled soft drinks and amendment of
the estate tax provision were among
suggestions made to the committee by
witnesses. In addition, the Chamber
of Commerce of the United States, in
q communication, urged general turn
over tax on all business transactions
as q part Of general tax program adj
yanced by it as the result of final
referendum vote among the CONNER
cial and industrial organizations with
in its membership.
Other recommendations Of the
Chamber of Commerce were repeal of
excess profits taxes and war excise
taxes, both those on transportation
and communication and those levied
in relation to particular businesses.
In the place of these taxes, tax on
all turnovers was urged
A tax on personal expenditures was
urged by Representative Mills, Repub-
lican, New York. He told the commit
tee that such a tax would encourage
thrift and penalize extravaganza. A
somewhat similar proposal was pre-
sented by c. P. Landreth, Philadel-
phia manufacturer, and F. ?. Miller, a
of Downingtown, Pa. They
suggested tax on all purchases by
individuals, partnerships and corpora
tons, and estimated on the basis of
current bank clearances that this tax
would yield approximately $4,000 ,0Oo, 900
Amendment of the estate tax pro-
vision of the revenue law so an estate
would not be required to pay more
than one tax in five years was urged
by U. c. De Ford, lawyer of Youngs-
town, Ohio. The witness cited an in
stance where through the death of a
husband and his widow within a period
OF nine days the same estate had been
taxed twice within that time.
Says Tariff Bill Rates
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