Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-08-05
MELLON INSISTS PUBLIC
AWAITS CUT, NOT SHIFT
IN THE TAX BURDEN
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gested, and I doubt either the neces-
sity or the advisability of the auto
mobile tax.
People are expecting a real re-
duction--a lifting and not wholly c
shifting Of the burden"
In estimating the outlay this
year at $3.50. 700, 900, Secretary
Mellon said, account had been talk
en- Of the latest information from
the spending departments of the
government as to their actual cash
expenditures for the year, Of cuts
in expenditures already reported to
the treasury, and of annual appro-
priations for this year already
made by congress-,
Ordinary expenditures were
placed at $4,002,657952 with an
additional $551,354,S65 public debt
expenditure fixed by law. The or
binary outgo included $545,206, 900
for payments to the railroads on
account of the transportation act,
and federal control, but it was eX-
planned that no allowance had
been made "for possible cash ex-
penditures resulting from with
drawals by the war finance cor
poration which has a credit bal
ance of about s40O,000,000 with
the treasury, and may draw down
its balance at least temporarily in
connection with the railroad fl
nancing proposed under pending
legislation"
On the basis of the existing rev.
enue law, Mr.. Mellon figured that
the excess of expenditures over re-
ceipts would be $3S6,000, 900. His
estimate of total receipts was
$4,217,643,000 based on the pres
ent law, or approximately one and
quarter billion dollars less than
received last year. A further
shrinkage of returns next year
was forecast even on the basis of
law revised to meet treasury
suggestions.
Calculating on the basis of the
proposed revision of the corpora
ton income and excess profits tax
being made effective as of last
January j, the secretary estimated
receipts for this fiscal year from
internal taxes at $3,567,000,0 900,
including $S75,000,000 from indi-
vidual incomes, 1857, 100000 from
corporation incomes and $413,000,-
900 from profits taxes.
Back taXes--income and profits
would account for 1926, 100000
Of the total and the remaining
S1.3S5, 100000 would come from
miscellaneous taxes.
On the basis of revision of the
excess profits and corporation in
come taxes becoming effective as
of January /, corporation income
taxes were estimated at $456, 000,-
600 and excess profits tax al
$3.50, 100000, making the tota'
yield from revenue $3,620,000,00
the estimates being made on the
assumption of other changes in
the law in line with suggestions
presented to the ways and means
committee last Monday but not in
Guiding the one cent increase or
first class mall estimated to yield
about s72,000,000 annually and the
two cent tax on each bank check
estimated to return s45, 100000 an.
nually
Revisions on which the esti'
mates were based, 1t was explain
ed, assumed the following
changes:
Increase in the corporation In
come tax to Is per cent as OF
January 1, 1921, Cor January l
1929 and the repeal of the $4,000
exemption.
Repeal of the excess profits tax
as of January /, 1921 Cor Janu'
airy l, 1929.
Increased collections OF BACK
income and profit taxes.
An increase on the tax on Gig
arettes and smoking and chewing
tobacco.
Repeal of the transportation act
on freight and passengers; the tax
to be reduced one-half January J.
1922. and repealed January 1, 1928
An increase of the documentary
stamp taxes, by approximately
doubling the present rates to yield
an additional $30,000.000.
The license tax on motor We
hicles. averaging about $40 apiece
and to be graded according 10
power.
Repeal OF the tax on ice cream
and fountain drinks as of January
/, 1922.
Revision of the income tax rates
with maximum sur tax rate re-
duced to 80 per cent.
Repeal of the so-called luxury
taxes on wearing apparel, carpets,
rugs, trunks. valises and the like.
Mr.. Mellon informed the COM
mittee that the estimates of all
revenues under the revised law as
sumed that more productive
tariff law would be enacted, cap
able of yielding about s70,000,0O0
additional revenue for the fiscal
year 1922 (the present fiscal year,,
and $4,000, 900 additional for the