The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1921-08-11
1922 u. S, TAX
FOUR BILLIONS
Secretary of Treasury Mellon
Asks Ten Changes of
Congress.
WOULD PUT LEVY ON AUTOS
Declares Suggested Revenue Reduc-
tons Can Be Made Safely Only If
Government Expenditures Are
Cut Down to the Limit.

Washington, Aug. 6.-The cost of
running the United States government
for the fiscal year of 1922 will be
$3.50 100000, according to revised es-
Inmates placed before the house ways
and means committee by SecretarN$
Mellon. cE
He estimated that receipts wo#$#@
Yield S35O.0OO,0OO and customs S#G
100000, leaving $3,S3O,O00,000 ~ be
raised in taxes.
For the fiscal year 1922 the present
law would yield $3.50, 100000 in in
ternal revenue and customs. The re-
vised laws would yield S3935 0OO,OoO,
Mellon said, if the revision of the cor
p0ratlon, income and excess pronts
taxes is made effective January !,
1921.
These figures do not include the
estimated receipts from the suggested
1-cent tax on first class mail matter
and 2-cent tax on bank checks. he
said. "These, It is estimated. Will
yield S117,OO0,0OO a year, or S72,oOo,-
600 from stamps and $45O0OOOo from
bank checks
With these estimates Secretary Mel
Ion also submitted his recommends
ton for tax revision.
This revenue" said Mellon, can
be reduced with safety only if, and
to the extent that, further reductions
are enforced in the spending depart
ments Of the government
Secretary Mellon estimates an in
creased revenue from the new tariff
law if enacted by December next, of
S7OO0O0O0 for the six months Of the
fiscal year 1922 and S15000oOOo in
the fiscal year 1923.
Urging a change in the income tax
law because Of dwindling receipts from
the higher swtaX rates. the secretary
said the revenue from the SurtaXes in
1921 win be S5OOOOO.OOO and the call
from the surtaxes above 3 per cent
which he recommended rs the maxi
mum. will be less than S10O0o00@
A small Immediate loss will result
from the change, but in tho end they
will he heavier. Mr.. Mellon suggested
thai the normal and surtaX combined
should not exceed 40 per cent for 1921
and - per cent thereafter,
Mellon suggested as substitute for
the excess profits tax, rapidly becom-
ing unproductive, an increase Of per
cent in the present 10 per cent cor
p0ration income tax rate, and repeal
of the $1,000 personal income tax ex-
emption,
Collection Of back taxes are eSti-
mated to yield S235,OOOOO0 in 1920
and $335,O00,OOO in 1923. but it might
be possible to secure an additional
$1OO,0OO.OOO from this source in 1922,
he admitted
He recommended reduction If one
half Of the freight and passenger
transportation taxes by January |,
1922. and repealed totally by January
!, 1923. The loss Of revenue would
be SG2. 100000 in 1920 and S1S0,0OO000
in 1923.
The Ice cream and fountain tax
should be repealed, as also the excess
price taxes on wearing apparel. The
loss would be less than S25,000,0O0,
He said the tax on perfumes, cos
metics and proprietary medicines is
evaded and is irritating and should be
switched upon the producer or i'm
porter
The secretary recommended dou-
bling the present rate Of documentary
stamp taxes. increasing the revenues
by $3OOO0,OoO for the fiscal year 1922
and S70.O0O,OO0 for the fiscal year
1923.
lie suggested the 2-cent stamp taxes
on each sight or demand check and
tax Of cent on first class postage as
convenient method of taxation"
An annual federal license tax upon
motor vehicles averaging so graded
according TO power would yield $685.
100000 in 1922
He suggested an increase In tax on
cigarettes from So to So a thousand
and slight increases on other tobacco
products to yield additional revenue
of $25,0OOOOO in 1922 and $57,0O0,0O0
in the fiscal year 1923.
Secretary Mellon said there would
be relatively small payments TO rail
roads in 1923 as against the S545, O0O,-
600 payments Of 1922,