The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-03-23
TAX REVISION
ON PROGRAM
Treasury Department Preparing
For Submission to Congress
EXCESS PROFITS TAX
TO BE REPEALED
1t is Also Possible That Sales
Tax May Be Imposed and Lux
ury Tax Increased

Washington. March t7.--Formula-
tion of a treasury policy on tax re-
vision has been started and prob
ably will be ready for submission to
congress when II convcncs April l l..
in extra session. Treasury experts
have been engaged for some days
I'm making n survey of revenue
sources and the extent to which each
may be tapped i'm bringing money
Into the governments vaults.
II was indicated today that while
Secretary Mellon had not taken pub
Tic stand with respect to the question
of whether revenue or tariff revision
should have precedence i'm congress
he Is declared to have the necessary
data on the subject ready for use
should congressional committee call
Mr.. Mellon said that no decision had
been reached on a question pertinent
to the forms OF new tax laws but in
ternal revenue experts were UNDER
stood to be preparing TO make recon-
mendations on some phases of the
Important problem.
Former Secretary Houston's views
were that taxation measures should
be considered ahead of all other leg
islation because of the effect on bus
iness OF changed tax laws. There has
been no indication OF change i'm
policy In that respect because few
of the officials connected with the
taxation side of the treasury have
been relieved.
Among the questions into which
the experts nave been delving is that
oi sales tax which has threatened
several times to cause rumpus
among members of congress whose
opinions vary widely. The treasury
expects to have complete statistics
prepared soon showing the amount
that can he expected from such tax
together with data concerning its cf-
fect on prices
Changes in the ratTg larger in
comes and increases In exemptions
also are under consideration with
view to determining the aggregate
amount of revenue. There has been
an insistent demand for raising the
exemptions of the lower salaried, now
place dat $4,000 for married men and
N.OOO for single persons
Repeal OF the excess profits tax
which has been particularly odious
To business appears to bc assured.
Recommendations to that end were
made by Secretaries Glass aud Hous-
ton and Mr. Melons attitude is uu-
derstood not To be different, although
IL had not been publicly stated. This
tax, revenue officials assert. has been
difficult OF collection and has acted
as brake on commercial develop
mcnt.
In addition to the sales tax, the cx-
pcrts arc investigating the revenue
producing qualities of higher luxury
taxes. Most treasury officials who
have studied the LUXURY taxes believe
that many Of those now i'm effect
should bc repealed. particularly those
simi'ar To- tn" soda fountain drinks
lcvies. The expense of collecting
such taxes, II has been said. has run
out of all proportions to the revenue
received In the last two years. while
the public was compelled at the same
time To pay tic amounts prescribed
by law.
Onc of tho main points In the cr-
forts of the treasury experts now is
To avoid involved and technical taxa
ton methods. Higher officials i'm the
department hold the enforcement end
collection of taxes under intricate
laws is much more expensive to the
government AMI not as productive
as simple and practical means of
assessing the taxes.