The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-08-11

ings securities and ST0.O00000 in what is
known as Pittman Act certificates. As a
matter of fact this total of SlT0.000 600
was incurred during the war and is to be
regarded as a part of the war debt There
wasn't any/morea reason. in Mr.. Mellon :
opinion, for paying that $4,000. 006 out
of new revenue than paying off Liberty
bonds OF course such part of the $170.-
006, 900 as falls due during the year will
be paid for out of sinking fund or other
available funds. 1t isn't such a large
amount but what it can be handled salts
faet0rily. So IL was cut out of the esti-
mates of the new revenue Sd
Sources of Revenue.
The most important announcement
made was that the actual tax burden of
the people would be S3075. 100000. This
is about S60O000,000 less than it has
been under the present law. The follow
has decided TO bring about the reduction
Amount of new budget S4.034 900 600.
Amount to be raised by direct taxation
of the people S307J, 100000.
Difference S959,0000O0. This means
! the government must raise Sg590O0. 900
from other sources than income taxes.
Here is how that is to be done:
Revenue from present tariff S300,000,-
900.
Back faxes unpaid or evaded 500. OOO,-
600.
Salvage of government property S140,-
100000.
Increased revenue expected from new
tariff S70,000,000.
Usual miscellaneous receipts into treas
ury S349. 100000.
Total from sources other than income
tax 1853. 900 900.
Now examining the item of S3,075,-
0OO.0 900. which is to be collected in income
taxes from the people. the government pro-
poses to readjust taxes in various ways.
Other Tax Changes.
In the first place the excess profits tax
will be repealed 50 as 10 be effective from
last January. Business men making out
their incOme taxes for the year 1921 can
forget about excess profits taxes. On the
other hand the corporation taxes, which
| il had been estimated two weeks agu
should be increased from thespresent rate
of 10 per cent to ID per cent, Will not be
that high after all.
The rate will be 1919 per cent.
The taxes on wearing apparel will be
repealed and all the proposals to increase
postage from two to three cents or to tax
bank checks or automobile licenses have
been dropped altogether. 1t is estimated
that the corporation tax will yield an
additional S125. 100000 by reason of the
increase in the corporation rate. This
will help offset some of the losses occa-
stoned by the repeal of the excess profits
taxes. The taxes on freights and pasSen-
ger fares will be reduced by one-half but
will not take effect until next January SO
they will hardly be felt by the public
until the year 1922, but it is also prom
iSed that all taxes on passenger and
freight rates will be removed at the end
of 1922 so that people can travel in the
year 1923 without paying any war taxes.
There will be readjuStment of the taxes
on soft drinks. ..a..
More Relief Next Year.
Broadly speaking, the Harding admin
istration is trying TO give the public some
relief this year and promises more next
year. Big business which has contended
that the excess profits tax strangled mi
tiative has been given immediate relief
on that score, and while the tax changes
do not affect the smaller incomes the
theory is that with the lifting of the bur
den on corporations a revival of business
will ensue and the Industrial depression
Will come to an end.
OF course congress hasn't absolutely
agreed to the changes proposed by the
President and the Republican leaders. but
the plan now is to jam the revenue bill
through a Republican caucus and then
through the house, leaving it to the SEN
ate to try to find still further ways to
reduce taxes.