Evening star., 1921-08-21
RepeaIs Excess Profits Levy
and Higher Income Sur
tax-Goes to Senate.
FINAL VOTE IS 274 TO 125;
NINE REPUBLICANS BOLT
Closing Scenes Before Ballot Turbu-
leut-President Criticised in
Democratic Resolution.

burden $S1s. 900. 900 when the measure
becomes fully effective in 1928. was
passed by the House yesterday. Tho
vote was 274 to 125.
Nine republicans voted against the
bill and three democrats voted for 1t.
Otherwise the vote was strictly
party vote.
Democrats voting for the bill were
Campbell, Pennsylvania, and Dupre
and Lazaro. both of Louisiana.
Republicans voting against the bill
were Beck, Wisconsin: Clague. Min
nesota; Keller, Minnesota; Lampert.
Wisconsin; Michaelson. Illinois; John
NJ. Nelson, wisconsin: Sinclair, North
Dakota; yoigt, Wisconsin. and Wood
ruff. Michigan.
Representative London, socialist
New York, voted against the bill.
The bill now goes to the Senate.
where it will be referred to the
finance committee. Chairman Penrose
has announced that the committee
this week will determine whether the
tax bill or the tariff bill shall be con-
sidered first by the Senate.
Fifty Vote for Reconmittal.
Although the republicans lined up
for the bill on the final vote. except
for nine members, on q motion to
recommit the bill to the ways and
means committee with Instructions
to report 1t back minus the provision
repealinE the income surtax rates
above a2 per cent. fifty republicans
voted with the democrats for the
recommittal. One democrat yoted
against this motion, Representative
campbeli:sSf Pennsylvania. 1t was
defeated, $50 to 1ss.
The fifty republicans who voted
for recommittal were: Andrews,
Nebraska: Barbour. California;; Beck,
wisconsin; Browne. Wisconsin: Burke,
Pennsylvania; Burtness. North Dakota; );
Cable. Ohio; Christopherson, South
Dakota; Clague. Minnesota; Cooper,
wisconsin; Davis. Minnesota; Dowell,
Iowa; Frear, Wisconsin; Calm. Ohio;
German, Illinois; Hoch. Kansas Hull.
Iowa; Keller. Minnesota; Kelly, Penn
sylyania: Ketcham. Michigan; King,
Illinois; Eleczka, Wisconsin; Knight,
Ohio; Kopp. Iowa; Lampert, Wis
consin; Little, Kansas: Luce, Massa-
chusetts; Michaelson, Illinois; Murphy.
Ohio; A. P. Nelson. Wisconsin,; John
NJ. Nelson, Wisconsin; Nolan, Cal
ifornia: Perlman, New York; Ram
seyer. Iowa; Robsion, Kentucky;
Rosenbloom, West Virginia: Ryan,
New York; Schall. Minnesota; Sinclair.
North Dakota; Speaks, Ohio; Stafford,
Wisconsin,: Steenerson, Minnesota;
Strong. Kansas; Swing, California; !;
voigt, Wisconsin,; Volk, New York;
Volstead. Minnesota; Woodruff. Mich
igan; Young, North Dakota, and
Zihlman, Maryland.
wm Raise s22l. 900, GOO Less.
AS 1t passed the House the bill is
estimated to raise $3.347,0O0, 900
revenue this present fiscal year. or
about $221 100000 less than would
be raised by the existing law.
AS repeal of the excess profits tax
and higher income surtaxes rates
would not become effective until
next January /, the full force of the
measure will not be reflected in
government receipts until the cal
endar year. 1923. but republican
leaders say that through repeal of
the transportation and other taxes
the reduction in the tax bill in the
next calendar year will be approxi-
mately $512.00o.000.
The principal changes in present
tax levies made by the bill as passed
include:
Repeal of the excess profits taxa
Increase Of the corporation income
tax from 10 to 121t per cent. ef-
fective next January l.
Repeal of the income surtax rates
from s2 per cent to 65 per cent
inclusive.
Increased exemptions to heads OF
families, effective as of last January
], to $2,500 for incomes not in excess
of $1,000. and additional exemption
for dependents to $500 from 5000.
Transportation Tax Repealed.
Repeal OF the transportation taxes
effective, next January /.
Repeal Of the tax on life, nre and
marine insurance policies, and i'm
position of the corporation tax OF
12h per cent ON all such insurance
companies. except fraternal. ef.
fective next January 1.
Repeal of the taxes on fountain
drinks, ice cream and other beverages
and the substitution of manufac.
turers' taxes as follows: Four cents
a gallon on cereal beverages; {
cents a pound on carbolic acid gas
5 cents q gallon on fruit juices OF
soft drinks. 8 cents a gallon or
stir drinks, exclusive of mineral and
table water. and 10 cents gallon
on fountain syrups. These changes
would 60 into force on enactment OF
the law.
Repeal Of the stamp taxes on per.
fumery, cosmetics. toilet prepare
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