New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-09
House Committee Agrees
On Elimination TO Cost
so Million; Levy on
Sports Goods Reduced
579 Million Cut
Is Being Planned
Army Reduction To Be
$4,000, 600 and Ship.
ping Board 100 Million

WASHINGTON, Aug S.-Agreemcnt
to eliminate the taxes on fountain
drinks and ice cream and the so-called
luxury taxes on wearing apparel is un-
derstood to have been reached to-day bv
Republican members Of the House
Ways and Means Committee, sitting in
executive session A reduction of one
half in the 10 per cent levy on sport
ing goods also is said to have been
agreed upon.
The total loss of revenue from these
proposed changes would be slightly
less than s5o,000,00o and the reduc-
tions are the first to be passed upon
by the majority members in their ef-
fort TO carry out the announced pro
gram Of Republican House leaders to
cut $500, 100000 from the nations tax
bill.
The committee majority spent sew
eral hours discussing possible cuts in
both taxes and expenditures.
There was suggestion that the
committee appoint delegation to go
over the whole situation frankly with
President Harding and Secretary Mel
Ion to obtain their counsel as we'll as
TO urge that the executive departments
hold down rigdly on expenditures. SO
tar as was disclosed no action was
taken but at the conclusion of the
days sessions Chairman Fordney SAID
he might confer with My. Harding
uDon the latter's return from New
England.
Estimates before the committee we're
said to have contemplated total cuts of
approximately S579 100000 in probable
expenditures for this fiscal year. leav-
ing the total at S3905, 200, 600, exclu-
sivc Of postal, estimated at $575,
100000.
s75,000000 Army Cut
Reductions proposed included $75,-
O0OO 900 for the army, S51 600 900 for the
navy, 100000, 900 for the Shipping
Board. S245,O0O, 900 for the railroads
and $100 900 ,0G0 proposed by the Treas
ury. to be employed IN redeening war
savings securities.
Tax reductions suggested totaled
$72O0O0.000, including $3.50 900 cN-
cess profits, 100000 income sur
taxes, $50 100000 nuisance taxes and
$3.50 100000 transportation taxes. As
an offset against these reductions, es-
timated increases in all income in
cluded 1892 100000 from the proposed
> per cent increase in the corporate
income tax to offset the excess profits
levy, $4,000, 600 from customs because
OF the proposed new tariff law and $50,
600 900 from the sale Of surplus war
supplies.
The net loss in government revenue
this fiscal year on this basis would be
sos, 100000 j the repeal of the excess
profits and higher income surtaXes were
made retroactive to last January l.
but il was said to-day that sentiment
to defer these repeals until next Janu-
iary was growing Should the commit
tee finally decide to postpone the date
Of these rovisions, the net loss IN rev
enue on the basis Of this set of figures
would be $50. 100000, leaving the totel
not income for this fiscal year at S4,
10, 900, 600 exclusive OF postal receipts
estimated at $500 600.
The wearing apparel lcvies proposed
for repeal arc 10 per cont OF the cost
Of:
Women's aud misses hats, bonnota
and hoods selling at SIS each or more;
women's and misses silk stockings OF
nose priced 81 per pair; men s, women 3
misses and boys boots, shoes, pumps
and slippers priced $40 per pair; men
and boys silk stockings or hose priced
81 per pair; men : shlrts priced ~ ~
I each; mems and boys hats priced S,
each; mems and boys caps priced 81
each; mems and boys nccAties and
neckwear priced 81 cacn; mems, WON
ems, misses and boys pajamas, night
I WINS and underwear priced S5 cach,
kmonos, pctticoats and waists priced
SIS each; mems waistcoats, sold scpa