The producers news., 1921-08-26
TON NEWS LETTER

,,,1NcToN NEWS LETTER
T. ash,, oh;neton, D. c., Aug. 24.-Ar
Nss ssant movement of unexpected
us th led by James A. Frear OF
engm; ''a and former Republican
seens,ad 1aader "Jim" Mann of Illinois
Puse .a,;Iv esU( defeated President Hard
npe,lar y nlan to give bonus OF about
I 5 opo plH1 oon to the war profiteers
'upJV;O n;ng retroactive: to Jan. l.
!, n'1feG Ihe Grepal of the excess profits
y .ad si0 the reduction Of the higher
as snu on individual incomes.
s5ad 1as5S bv nearly all the progressive
tleuestern 1lu congressman, >lnclud-
l';Sn Sinclair Of North Dakota and
Ill., of Minnesota, the Republican
III, nshers = of the House in caucus last
I u turned down the ways and
- |sns 60 committees recommendations
4li this effect by a vote of 95 to 81.
..et;ealy . all other provisions. of the
r renorted by Chairman Fordney
4he m wavs and means committee
y W. left unchanged. and, under a
s;sl rule which allowed only two
: w. If debate and made it almost
rossible to amend the. bill item by
the revenue measure passed the
,se last Saturday by a 5opheavy
jority. "a,
Il ef the duitable provisions which
! been criticized in my previous
srs By repeating the excess pro-
ta tax and reducing the niger in-
j. SUR tax from maximum Of 65.
cent to 80 per cent, it relieves
than 5000 millionalres Of taxes
rregating more than s60G,000,000
throws an additional burden upon
ii merchants, manufacturers and
hers BY increasing the corporation
pme tax from 10 to l21a per cent.
bill does, however, increase the
yidual exemption for a head Ct a
hiy from $4,000 to $4,000 and the
tcnal exemption for dependents is
led from 5000 to $400. The saw
accomplished by these two
nges only aggregate $7o,O00,ooo
will not begin to offset the great
letions made in the tax burden OF
wealthy. The bill also repeals the
nspotation tax, thoroughly meri-
jous move, which will reduce the
ntry's annual transportation bill
he ie'l'll'fn bill finally adopted by the
pse caucus is much better than the
asure originally planned by Ford
Longworth, Mellon and Harding.
first draft, according to ''lnspir-
newspaper announcements, re-
bed the transportation tax and all
nuisance taxes, levied a $40 tax on
onobiles and proposed to increase
first class postage rates from two
three cents. AS a crowning per-
\, this bill not only repealed the
Eess profits tax and reduced by one
the tax on incomes of more than
0OOO, but proposed to make this
roactive to Jan. l, 1921, which
n gId dov virtually rea have made a gift Of
VVo,OO0 to the great profiteers,
most Of these concerns had in
ded their Tax in their prices and
eady passed it along to the consun1-
padHc. This indefensible propos-
" said to have been suggested by
esldent Harding himself and it was
" defeated by the vigorous protest
a handful of Republican progress
es who threatened to carry the
NJ onto the floor of the house.
OVER TAXES BY BORROWING
Republican leaders are claiming
Rt the Fordney revenue bill will re-
ee taxes $193,64O,OOO for the pres
fiscal year; s377,790,OOO for the
cal year 1922; and S79O,00O, 900 for
nscl year 1923; but these saw
are purely problematical. and
" nave been accomplished on pa
0y very obvious Juggling Of fig
G rs August 4, Secretary Mellon
sol1ed to the ways and means COM
Luce that the Treasury department
slmaeed the expnditures for the
oa trent = year at s4,550,O0O,OO0 Of
rsi! asa s5S5o,000 must be provided by
sqon. This was considerably high
wan the estimates made by Chair
= % !: f9rdney and created consterna.
~ u Republican ranks. There were
ay' conferences at the White
sase' a and, as. a result, Aug. 10, Sec
y. se.y Mellon issued another state.
MIA ny mat governmental expenses
4 4s % 9e Nas only Sd ,034, 100000 of which
s.s sso'ofo, 100000 must be raised b,
tssretary tsre y Melons first report stat.
essns @ the estimates which The
knlaa ksIy mas represented may be re
kias;ao nv as conservative" and aftel
id dung ass. out that the actual none,
an fsu ~. Tor July was $55,000 more
bdedI IoH ths1 the a:a same month a year ago
|uti;nns a mat If expenditures are t,
ktima.e .e anything like these rates, til,
a'es giw Is Y will be greatly exceeded
kdden " u these strong statements hi
[@ads En- 1, drastic reduction-evidentl,
(ys cons! under presidential pressure
kraevV evVnfflqerable of 4: b doubt upon the &C
tsss s q q HI his revised estimate" Sec
Ia g ,.lll MELONS 4 revised figures" de
,;s11gely upon the salvage of wa
erasass' collection of back taxes an,
be en;a; sa revenue from the tariff. Il
karces Su!n OF experts. none Of thes
s1e,sm..:l m.l yield anything like th
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