The Birmingham age-herald., 1921-07-31
FORDNEY HOPES ID
 GUT HALF BILLION .FROM 1922 TAX BILL
Other Members of Ways and Means Committee Less 0p- timistic, Believing 4 Bil-
 lions Will Be Needed
By Associated Press

Washington, July 30.--Republican of the House ways and means com- mlttee conferred today for develop ment of views on tax revision. .dany divergent opinions were developed, but no conclusions were reached.
 Emphasizing that he was speaking solely for himself. Chairman Ford ney said afterwards that the goal to- ward which he would strive would be cut of half billion dollars in he tax bill next year. His opinion was that by the exercise of rigid economy the government could be operated fer $3, 800, ,O00,OO in 1922, instead of the s4. 900. 900, 900 estimated by the treas- ury.
 Other members were less optilnis- tic. They thought that with the enormous fixed expenses, including the interest on the public debt. he costs of maintaining the army, navy and the government merchant fleet. lit would be impossible to get along with much less than $4,000. 900 900. and consequently could see iittle prospect of any marked reduction in the tax burden.
 Practically all members of the committee are in sympathy with the repeal of the transportation taxes, both passenger and freight but ahey have not yet fixed upon new sori.s- of revenue to offset the loss of s25a.- 100000 to the treasury that ehis would involve.
 Chairman Fordneys idea is that ifS | the repeal of the whole is found inf- practicable, start might be made 1 by cutting them in half next year. and eliminating the balance he year 1 following. Representa- brpC- worth, republican, Ohio, aas 6efcr the committee bill peo4esinr straightout repeal.
 Income Rates to GeWteie While committee repu0csnay~ln they will frame the t siil- na q reached no definite det istous 6n ca, proposed revisions 1t sNreara As fairly well established fhhf thkss A 1 be no alterations In the uoFsl al asaa on individual incomes or che sfu af of exemptions allowed There S | ably will be some shif aS of she a. burden in other direc ana and fl Fordney Is of the belief tA4s sn,ne new sources of taxation will be found.
 
 studying the Canadian system of tax ing luxuries, particularly in their re- lation to the so-called luxury taxes imposed by the present American law. Illustrating the difference te- tween the two, MT. Fordney said that | in this country in case of wearing apparel luxury tax was imposed on the cost above a specified sum, whereas in Canada a tax was inn posed upon the whole sale price, where the cost was in excess of a given amount.
 Asked about the repeal of what the treasury has characterized as "nui- sance" taxes, such as that on coda water Mir. Fordney said smilingly that all the taxes in the bill were ''nui sances."
 Treasury and internal revenue hu- session, as well as renewing the ad- sent some new recommendations to the committee Monday in executive sessions. as we'll as renewing the ad- mlnistration proposal for repeal of the excess profits from 10 to IS per cent.
 Chairman Fordney Representative Longworth and many other members | of the committee are known to favor this plan. Mir Fordney said today ! 1t would make for simplification. He was of the opinion that the revenue received by the government would be substantially the same, but said that | in any event he thought it was the general belief that corporations should not pay as much in peace time as in war time.
 There Is difference Of opinion among members IS to the time which will be necessary to frame the tax ! bill Representatfya Erear rarnh1t can. Wisconsin, said today it might be September before the measure could be made ready for the Ho Ise. He declared the subject was a highly important one. and should be given earnest thought and study. In this connection. the Wisconsin member said he was opposed to xry one dictating to the committee what should or should not be done