Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-09-17
REPEAL EXCESS
. PROFITS TAX As
Of JANUARY 1ST
Revision of House Revenue
Bill Virtually Is Completed
BY the Finance Committee
of the Senate.
(By The Associated Press.)

Washington, Sept. 16,-Revisioni
OF the house tax bill virtually was
completed today by the senate III,
nance committee, which under the
present agreement win report to
the senate a measure having these
outstanding proposals.
Repeal of the excess profits tax
as OF next January /, as proposed
by the house.
Reduction of the income surtaX
rates from maximum of 65 per
cent to 80 per cent. effective next
January /.
An increase in the corporation
income tax from 10 per cent to Is
per cent, effective next January |,
instead of IL IL per cent as pro-
posed by the house.
Repeal of the corporation capt.
tai stock tax as of next year.
Retention of present rates on
express packages and oil by pipe
lines; and retention of the taxes
on freight and passengers for the
calendar year 1922, only at half
the present rates of 8 per cent and
s per cent. respectively The house
proposed repeal of all of these
taxes as Of next January /.
In agreeing to the house maxi
mum surtaX rates of 80 per cent
the senate committee adopted to-
day a rearranged schedule of rates
under which individuals having In
| comes of from $1,000 to $4,000
would be relieved of the present
surtax Of l per cent.
Beginning with incomes of
$4,000 and ending with those of
$4,000. the rate in each bracket
would be reduced l per cent. In
the brackets from 100000 to $34,-
900 the existing rates would be in
creased l per cent and the brack-
cts from $4,000 to $4,000 the
present rates would stand. Incomes
of $4,000 or more would be taxed
at the maximum rate.
Members of the committee ex-
planned that through this plan and
the increased exemptions allowed
to heads of families and on account
of dependents there would be re-
duction of the income taxes all
along the line except in the case
of single men having incomes of
$4,000 or less.
The loss in revenue through the
Encouragement of the surtax rates
was estimated by treasury experts
at $4,000, 900, making the total
annual loss in individual income
taxes $17S,000,000, including $780,
| 000,0 through reduction of the
| maximum surtaX rates and $70,-
100000 through increased exemp-
| tions to heads Of families on ac-
count of dependents.
Senator Smoot, of Utah, a repub-
| lican member OF the finance COM
mittee, plans to offer in the sem
| ate a substitute for the whole
measure his bill in which is in
corporated manufacturers tax
plan. This measure has the sup
port of number of manufacturers,
associations, representatives or
which were in conference here this
week.
The final vote on the bill was
deferred today until next Wednes-
day, but the committee will hold
another session tomorrow to gather
up loose ends. At that time Sena-
tor Smoot will offer his substitute
bill and Senator Calder, republican.
New York, plans to introduce his
proposal for a tax of IS on bar
rel on 2.75 per cent beer.
I The committee re-considered To-
day it's decision to include in the
lbill a manufacturers tax of two per
cent on proprietary medicines, and
adopted the house proposal to re-
move all taxes on these articles.
Its proposal for four per cent tax
on cosmetics, perfumes and toilet
preparations in lieu of the present
stamp taxes, effective next jan
uary /, stands, however.
The house proposal for taxing
life insurance companies was ap-
proved except that they would be
required to pay is per cent tax
on their investment income, eff
fective as of last January /, in
stead of 12h per cent rate. The
present taxes on premiums Would
be repealed as of next January l.
Fire. marine and other insurance
I companies would be taxed as at
present, except that the higher cor
poration income tax would be I'M
posed.
Besides these changes, the COM
mittee has made these revisions IN
the house bill:
Restored the three per cent tax
on toilet soaps and powders.
Restored the ten per cent rates
on fur articles. motorboats and
yachts, portable electric fans, and
works of art which the house pro-
posed to cut to five per cent.
Imposed a ten per cent tax on
candy selling at wholesale for
more than 40 cents pound and ac-
cepted the house reduction from
five per cent to three per cent on
all other candies.
Rejected the house proposal to
exclude from the reduced tax OF
five per cent on sporting goods
such articles as baseballs, footballs
and basket ball equipment. skiis,
skates and toboggans.
Rejected the house proposal 70
exempt from income tax the sal
aries Of the president and judges
of the federal courts and the first
$500 of income from investments
by individuals in building and loan