Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-25
REVENUE REDUCTION BILL
REPORTED BY CHAIRMAN ALDRICH
TO THE SENATE. 80 49, y
Complete Substitute for the Measure
as 1t Passed the House. of ,s,,- y ..
Representatives. 'ee- .r.s,z

| passed the House. senator AlQTlcn maui d
statement explaining the changes which are
as follows:
Stamp taxes repealed-Promissory notes
mortgages, bills of lading for export, pow
ers of attorney. protest charter party; GER
tificates of all kinds. leases warehouse re-
ceipts. Geographic dispatches, telephone
messages, passage tickets, costing less
| than $50; express receipts, freight receipts,
| bonds, except bonds Of indemnity; leSacies
to religious, charitable, literary Or educa-
| tional institutions.
| Special taxes repealed Commercial brok-
| erS.
| Taxes reduced-Conveyances, insurance.
| bankers capital, proprietary medicines CT
| gars, tobacco, beer.
Purpose of the Committee.
| The statement says that having always In
| view the revenue requirements of the gov
eminent. the purpose Of the committee has
been to repeal such of the taxes imposed
by the war revenue act of 1898 as are most
annoying and burdensome to taxpayers, to
retain such as should be kept as a perma-
| nent part of our revenue system Or at
least retained until all war taxes can be
repealed and to reduce all others as fairly
and equitably as possible by some general
plan of reduction. Pursuing this general
plan, 1t has been possible to reduce the
taxes affected approximately one-half
Taking the estimates of the Treasury De-
partment as a basis the reduction Of reve-
nue. effected by the bill will be nearly S40,-
OO, 900, reduction somewhat less than was
produced by the bill as it passed the House
of Representatives.
Reductions-The committees substitute
provisions in regard to cigars, tobacco,
beer, etc, are as follows:
That on and after July 1, 1901 the in
ternal revenue tax on cigars weighing more
than three pounds per 1000 shall be $3.50
per 1000
I,1lv
shall be allowed discount of Is per CEN
tum on all sales by collectors to brewers
and manufacturers of tobacco and snuff
upon the stamps provided for the payment
of internal revenue taxes upon beer and
manufactured tobacco and snuff: Provided,
That the discount allowed to brewers upon
beer stamps shall be in lieu of the discount
of IA per centum allowed by the act Of
June 10. 1898" 49, 49,,
The saffect Is to reduce the beer tax to
$3.50. per barrel and on snuff and tobacco
to 9 cents pound.
There is a general reduction of the tax on
insurance policies and renewals, and it is
provided that in lieu of the present taxes
special taxes shall be imposed to be paid
by the insurance companies, as follows:
Insurance.
Life insurance companies cents on the
amount insured for each 500 or fraction Of
every policy. This provision is modified by
the following proviso:
THAT in all policies for life insurance
only, issued on the industrial. or other
weekly or monthly payment plan of insur-
ance, the tax to be paid Shall be 10 per
centum of the amount of the first weekly
premium, or ) per centum OF the first
monthly premium: And provided further,
that the provisions of this section shall not
apply to any fraternal beneficial society or
order, or farmers purely local cooperative
company or association, or employees relief
association, operated on a lodge system or
tive allow, ioa1n
Quoted solely by the members thereof for
the exclusive benefit Of Its members and not
for profit
Marine, inland. fire. casualty. fidelity and
guaranty insurance companies-A Of 1 per
cent of the gross premium receipts, pure
ly cooperative or mutual fire insurance
companies to be exempted. r-"
All insurance companies are to be required
TO make annual returns to the commissioner
of internal revenue, the returns required be-
ing such as will enable the commissioner
to levy and collect from the companies the
taxes required to be paid by them. In case
OF the non-payment of the special taxes
levied against insurance companies 1t Is pro-
vtded that the delinquent company shall be-
sides being liable for the payment of double
the amount of such special tax be deemed
guilty of misdemeanor, and upon prosecu-
ton thereof shall pay a fine, of, not more
than $500. The commissioner Of internal
revenue Is authorized to examine books and
accounts of companies he suspects are max
ing false returns. ..--.--... co. ---.-- ZEE
Reduction on Conveyances.
The rate on conveyances, including deeds
to land. is materially reduced. In the ex-
listing law all deeds covering values ex-
ceeding 500 are taxed at the rate Of 30
cents. The Senate committee removes the
tax on all deeds where valuations are be-
low $500 and makes the tax rate % in
stead of 80 cents. For each additional $500
above 5000 the tax is to be % cents.
The tax on bankers Is fixed at the rate Of
81 on each $1,000 of capital and surplus used
by them.
Section 20 of the existing law pertaining
to proprietary articles, including drugs,
perfumeries. etc.. is practically rewritten.
The language of the first portion of the sec
ton is allowed to stand. except that per-
fumeres and cosmetics are eliminated The
proviso as reported provides: That no
stamp tax shall be imposed upon any I'M
compounded drug or chemical wherein the
person making, bttering or vending the
same does not have or claim to have an
exclusive right to the making or preparing
OF the same or does not have or claim to
have any proprietary right in the exclusive
or special use of the name or title thereof
or upon any uncompounded drug or chemt-
cal not made, uttered or vended under any
letters patent issued in this or any foreign
country.
And provided further that no stamp tax
shall be imposed upon any medicine or
medical preparation compounded according
copoeia or the National Formulatory Of an
edition not earlier than the year 1890 when
such medicine or preparation Is des ignated
on the package or Enclosure thereof by its
true and correct name or title a. denomi-
mated or laid down in such pharma copoeia
or National Formulatory as aforesaid and
when the edition and page of such pharma-
copoeia or formulatory containing the for
mula of such preparation or medicine Is
consplcuously given on the package there
OF. Nor shall any stamp tax be imposed
upon any medicine or medical preparation
which bears conspicuously upon the pack
age or label thereof of the true and cor
rect working formula for making, COM
pounding or preparing the same:
Provided, that such medicine or prepara-
ticn Is not advertised on the package
thereof, or otherwise. to the public by the
makers, vendors OF proprietors as a remedy
or specific for any disease or aiment"
Further provision is made that no taxes
shall be imposed on physicians Prescriptions
for individuals.
In the rates of taxation on proprietary
articles, as fixed in schedule of the
existing law, there are material reductions
and various other changes. including the
elimination from the tax list of all per-
fumeries and cosmetics chewing gum and
substitutes therefor and sparkling or other
bottled wines. On patent medicines the
tax is reduced to ITO of l per cent on
articles the retail price of which does not
exceed 10 cents An additional tax of 100
% t. Rxyn1