New-York tribune., 1921-01-18
Fordney Brings Word.
From Marion President
Elect Expects Congress
to Hasten Tariff Task
lax ON All Sales
Scheme Favored
Bacharach Has Indication
of o. X. of 700 Million
Excess Profits Substitute

o"e re 1T'o"neS s washington Buredv
WASHINGTON, Jan. 17.-April is
the date President-e Harding has
selected as the time for the probable
call Tor the extra session of Congress,
according to Chairman Fordney of the
House Ways and Means Committee,
who has just returned from Marion.
where he and Mr.. Harding conferred.
Mr. Fordney informed Senator Har-
ding that the Ways and Means Com
mittee would be prepared to report
tariff bill on that date, and gained the
impression that this date would in all
likelihood be fixed upon, in fact. had
been practically chosen.
While dispatches from Marion to-
night indicate that Mr.. Harding has
not finally fixed April 4 as the date, it
is regarded here as the time likely to
be fixed. Much will depend on the
progress of legislation in the present
session. If any of the important ap-
propriation bills should fail of passage
by March this may make a differ
ence In the time and result in an
earlier call, as it is thought by some
Of the leaders it will be important to
have these out of the way before the
Ways and Means Committee reports
and the tariff bill is taken up. Senator
Harding has said he would like to see
the appropriation bills passed this
winter.
Earlier Date Suggested
Senator Harding has been urged by
leaders to call the extra session as
early as March Is. He has been told
that the task of tariff revision and
tax revision is going to be long and
arduous and that it is important not
that Mr.. Harding has decided he will
need several weeks after March 4 to
get the executive machinery running
without having Congress in session
II the date Is fixed as late as April
q, as Mr.. Fordney believes, it will mean
that in all probability it will be we'll
along in the fall before Congress ends
the extra session. In fact. many be-
lieve the extra session will be so pro-
ionged that it will practically run into
the regular session. and Congress will
SIT almost continuously from the time
1t assemblies next spring until it goes
out OF existence March d., 1928.
President-elect Harding will favor
general sales tax as the basis Of
the tax revision program, according to
representative Isaac Bacharach, of
New Jersey, author Of the sales tax
bill now before the House Committee
on Ways and Means, who returned to-
day from Marion. The Congressman
discussed with Senator Harding the
| repeal Of the excess profits tax, the
sales tax, customs receipts and simpli-
cation of the tax laws.
Advised by Treasury
Il believe that the Presdent- ect
will want the sales tax scheme put
into the revenue program" said Mr..
carried from our meeting"
In discussing proposed revenue legis-
latlon, Representative Bacharach said
to Senator Harding:
"The Secretary of the Treasury has
advised US that it will be necessary to
find some new source upon which a
tax may be levied to take the place of
the excess profits tax.
ITO find this new source is the great
problem winch confronts Congress, and
more especially the Ways and Means
Committee"
There are three generally. accepted
methods which can be employed in the
adoption of sales tax and it's collec-
ton, Mr.. Bacharach told the President
elect. The first and easiest to collect.
he said, would be a tax on everything
at its source. This sort of tax, it is
estimated, would bring in about
$3.50, 100000.
The second plan, known as the "turn-
over" tax, at the rate of 1 per cent
would bring in about $1,000, 900 900,
while the third and most favored sales
tax is strictly merchandise tax on
final sales. This produces approxi-
mately' 00,00O,O00.
Il realize that there is some opposi-
tion to the adoption of such a tax be-
cause of the fact that it is direct
consumption tax" Mr.. Bacharach ad-
mitted in his talk with Senator Har-
ding. "But my faith in the proposition
is so strong and in order that the
plan might be given fair and square
trial l am suggesting that the rate be
made extremely low, or q tax on final
sales of l per cent" he added.
Even at this low rate it is estimated
that the returns would approximate
$500, 100000, and if we apply the tax to
notels and similar institutions-an l
think the sentiment would be to tax
them on the same basis--it would in
crease the returns approximately $780,
100000 additional or to q total of
$950,00000