Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-10
$520, 900, 900 TO
BE CUT FROM THE
GOVERNMENT COSTS
Fordney Expects to Have
Bill Ready For Consid- /.
Grafton Monday.
President Harding Entered
Tax Revision T'seussion
Tuesday

Washington, Aug. f0.-Repeai
of the excess profits tax and In
come surtaxes above So per cent
effective as of last Jan. IL and
all the freight and passenger 4 4.
transportation taxes as OF next n
JAN was agreed upon today by
republicans of the house ways
and means committee, Chairman
FOrtincy announced.
The committee majority also
agreed to increase the normal in.
come tax on corporations per
cent, making a total of is pcr
cent instead OF - 1-2 per cent,
as suggested at the White house II
tax conference last night. A
$1,000 exemption on corporation
income was understood to have
been retained.
Washington, Aug. 1o.-Presfaent
Harding. having intervened to
straighten out tax revision differences
between leaders of the house Of rep
rese natives and treasury officers.
ways and means committee republic
cans set to work today to draft q
revenue bill for s3,075, 900, 900 or ap-
$600.00O,oOO less than
lad been suggested by Secretary Mel
lon.
This total was agreed upon last
evening at the White house confer
ence attended by the treasury secre-
tary, Speaker Gillett, Representative
Mondell of Wyoming, Chairman
Fordney Of the ways and means COM
mlttee and other prominent republi-
cans. 8.
To Cut Expenditures.
At the same time the decision was
reached, it was stated officially, to cut
100000 from estimated expendi-
total at 4.0s4,o00,o 900 as against the
treasury's estimate OF 1854. ooo, 900.
This would be accomplished, it was
explained by somewhat drastic
slashss in estimates for the war,
navy and agriculture departmgrfs,
the shipping board and railroads and
the refunding of $17,oo8,o0 Of dis.
nnrsementss on account of the public
debt. | ~ :,
Va Ready by Monday.
Chairman Fordney said his COM
mittee probably will have the new
revenue bill ready for considerations
by conference of house repu blicans
next Monday and leaders generally
thought the measure: probably could
be passed by the house by Aug. 20,
permitting congress to recess on that
date for month.
Under the program as now planned.
the senate finance committee would
work on the tax bill, during the re-
cess, with view to having it ready
for senate action when congress re-.
convened. This would permit Of fl Z
nal passage OF the tax bill ahead of
permanent tariff measure, q program.
1t was explained, which the president
desired to have carried out.
Taxes to Be Cut.
The greatest bulk of the taxes
which it is proposed to repeal, would
come off as of last Jan. 1, these being
the excess profits tax, estimated at
$450,00O.O00 and the income surtax,
above 80 per cent? which are esti-
mated to yield $90,0Oo,0o0. After.
this year, the income tax would be re-
duced to rs per cent, entailing a fur
ther revenue loss next year. Repeal
of the other taxes proposed-one half
of the transportation taxes and So
called nuisance and luxury clothing
levies-would become effective next
Jan. and would result In a total
loss Of $1s0,eoe, 900 in revenue.
They expect the plan to cut off all Of
the transportation taxes on Jan. Il;
1929. The proposed increase in the
levy on the incomes of corporations
also would be made retroactive to last
January. The White house agree
ment was. for an increase Of 2 IL per
cent instead of per cent. making the
total II 1-2 per cent. estimated to
yield $12S.ooo,ooo.