New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-06
Congress Finds
& y
Real Puzzle i'm
TaxLegyislation
Folks Back Home Threaten
Political Death Unless
Burden Is Lessened as
Mellon Asks More Funds
Can't Sidestep Problem
Billion Bond Issue Hinted
AT TO Care for War Debt:
Harding May Come to Aid

WASHINGTON, Aug. 6.--Republican
leadership Of the House has been
forced into a corner on the question
Of reducing the taxes.
The Administration, through Secre-
tary Of the Treasury Mellon, says more
revenue than the present laws will
weld must be provided to take care
Of the actual needs of the executive
departments. 1t has suggested ways Of
raising this money.
The folks back home" are letting
Congress know in very certain terms
that there will be a House of diff
ferent political complexion here two
years hence If there is not some sub
stsntial relief from the present bur-
densome taxes. These letters arc pay
ing especial respects to Secretary Mel
IONS proposal for 2-cent tax on bank
checks, 5 cent postage, $40 tax on
automobiles and a Is per cent corpora
ton tax, without the $4,000 exemption.
as substitute for the excess profits
tax.
On the one hand Republican leaders
are confronted with estimates that
some of them seem to regard as
sacred; on the other, with the people de-
handing relief, with political death as
the alternative. Congress would like to
sidestep, but there does not appear to
be any way to do it, although one sug-
restior. in that direction is being dis
cussed about the Capitol.
Bond Issue of Billion
The ide-stepping proposal is to float
bond issue for 81 900, 100000 to take
care of items Of expense, totaling about
that amount, which are chargeable to
the war BY such move, which would
merely be passing the debt to future
years, Congress could give the execu-
tive departments the money they want
and reduce present taxes about $foo'-
100000.
In its predicament the department
leadership is turning its eyes to
Charles G. Dawes, Director of the
Budget in the hope he may be able
IN offer some way to reduce estimates
ga that taxes will not have to be in
creased S260000, 900, as suggested by
Mr. Mellon. but reduced half billion
dollars. When President Harding gets
hack from his New England vacation
Il is expected he will find this prob
lem on his doorstep and will be com
PEELED to help Congress out OF hole
again. just as he did when the Senate
got itself entangled with the soldiers
bonus bill.
The estimates which Mr.. Mellon pre-
sented to the Ways and Means Commit
tee cannot be changed by him. His bus
mess as Secretary Of the Treasury, so
far as estimates are concerned, is little
more than than of an errand BOY. The
denartments tell him what they want
and he passes the word along to Con
eress. Under the new law the budget
officer will have authority to make re-
auctions. The trouble is that each de-
rartment will make convincing argu-
ment and the resulting estimates VIII
be high. The departments already nave
been urged by President Harding to
hold down everywhere. But the figures
submitted by Mr. Mellon shows they are
still reaching out despite Mr.. Dawes
recent report of saving of more than
s10O0OO,O00 on this years expenses.
Can Limit Appropriations
Congress makes the appropriation
and it can limit them to suit itself, with
the exception of the permanent appro-
.uriations, interest on debt and sinking
fund to pay the debt, all of which are
fixed by law. These total only about
one-third of the amount it is proposed
to spend.
The revised estimates submitted by
Mr.. Mellon are out of harmony with
the appropriations which Congress has
made for the year. Congress has ap-
propristed s3,909, 100000. This includes
s575,000,000 for the Postoffice Depart
ment. The estimates total $4,55O ,oUo,-
600, and include only s72,200,000 fol
the Postotfice Department..
The War Department wants Saoo,'
600 and the total given it by Con
gress is about $100,000,0o0 less. The
Navy expects to spend $75,00o,0o1
more than granted. The United States
Railroad Administration is asking
S595,000,000 for the railroads. The
Shipping Board wants $200,oGo,00o
Departments like Labor, Commerce
Agriculture and Interior want from
two to FIVE millions more than Con,
gress thought they needed. In the past
the custom has been to go ahead anc
spend the money and put in deficiency
bills,
Congress could reduce taxes, keer
expenses up and reach the end of the
year. with an enormous deficit. The
people might be fooled now by such
q procedure, but next July is pretty
close to election time and the deficit
would have to be taken care of then
Both floor leader Mondell ane
chairman Fordney of the Ways ant
Means. Committee insist that reduc
Sons in the taxes Of $5O0,00o,o00 cal
be made despite Mr.. Melons state
ment, They say way will be fount
70 cut down expenses, but as yet have
not pointed in the direction.
representative Madden, of Illinois
ssontended that the public should no
% assessed in one year the amount du,
.le railroads under the transportatio,
sct' $5d5, 100000, and declared that b.
apportioning this sum over severa
years big reduction in expenditure
ccuId be made for this year. Congress
could be depended on to keep down ex
ppssnses' Mr.. Madden said. and he asserte,
snae government receipts would b.
lsfges than the Treasury Secretary ha,
Six lnfantile Paralysis