The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-08-15
TAXREV|S|0NIS
SUBMITTED To
G.O.P.MEMbERS
House Leaders Take No
Chances on Having Act Shot
To Pieces Later.
By A. o. HAYWARD.
International News Service.

The tax revision prepared by Re
publican members of the House Ways
and Means Committee after consulta-
ton with President Harding was sub
mitted today to the Republican mem
bership OF the House for endorsement.
All legislative business before the
House was suspended until there could
be an agreement on the tax legislation
and promise of party support for the
measure when II Is brought before the
House Wednesday for consideration,
The Republican leaders could take no
chances of having 1t shot to pieces by
amendments proposed either by dis
satisfied Republicans or by the Demo
Gratis.
Passage Is Expected.
Republican Leader Mondell said to-
day he had no doubt as to the final
and hearty approval to be given the
bill by the House Republicans. He
claimed that II represented a success
full effort to reduce and redistribute
eqsitably the tax burdens on rich and
poor alike.
The revision of taxes proposed is
estimated to reduce the tax yield about
$500, 900, 900, or about So per capita.
Internal revenue taxes under the law
90 SIdI6Cu wiz oAoSC Oil CbiiiiiotCu
SO, 900, 900, 900 annually for support Of
Government.
Secretary Mellon estimates that
something over $4,000. 900 900 will be
needed by the Treasury during the
next fiscal year. The additional
81 900, 900, 900 is to be made up from
customs duties. miscellaneous receipts,
salvage from sales of surplus war ma
ter4als, increased receipts from back
and current taxes, and reductions in
expenditures by the Government.
The tax revisions submitted to the
Republican conference today carries
out the Republican prediction
pledges to repeal the excess profits
taxes. the transportation taxes, and
the heavy surtaxes on incomes In the
interest OF businss rehabilitation, and
to- get rid of the small taxes on ice
cream, soda waters, luxuries and other
things which have proved vexatious
to the people.
The proposal increase I'm the corpora
ton income tax is intended to absorb
some OF the losses from repeal Of the
taxes bearing heavily on business. and
readjustment was made of the
luxuries and nuisance taxes to place
part OF them on the manufacturer in.
stead OF on the purchaser.
With a desire to escape the criti-
cism that only taxes on the rich
were repealed or lessened, the Re
publican Ways and Means Committee
decided to increase exemptions from
income taxes for married persons and
the exemptions for children and de-
pendents allowed heads of families
Treasury Plans Drive.
The Treasury is prepared. by legis-
latfon carried in the bill, to make a
sharp drive for the collection of
some part OF the 81 500, 000, 900 back
taxes due II under laws passed since
1916. Many contests have arisen be-
tween the taxpayer and the Govern
ment as to the amount OF taxes
actually due the Government, and
some OF these cases are pending in
the courts. Many others are hang
ing fire before the Treasury, and
the Secretary Is authorized to take
up such cases and effect an agree
ment as to taxes justly due, accept
payment, and make final settlement
There Is a new provision in the
bill for creation of a tax board Of
simplifications. This board is to be
made up of representatives OF tax
payers and Treasury experts who are
to work out during the next two
years some plans for making clearer
the tax forms sent out TO the tax
payers. 1t is hoped to get these
forms SO simplified that a taxpayer
may pay his taxes without the help
of high-priced legal experts.
Decisions Covered.
Decisions of the United States
Supreme Court Affecting tax mat.
ters are covered in the new tax bill
Personal service corporations, freed
by the courts from the corporation
taxes. are brought under the new
law and made responsible for taxes
since 1913. Estates are freed from
the estate tax more than once in five
years. A rule is set forth for COM
putting income and estate taxes where
the estate tax is claimed within the
period covered by the income tax.
The amusement tax is lifted on tick.
cts supplied disabled soldiers to places
of amusement, although the general
amusement tax is continued
Increases made in the tax on cereal
beverage, which includes near-beer.
and on many fruit Juice bevera ges
have been opposed vigorously by the
manufacturers of these beverages. II
Is claimed that the drinks are taking
the place of the stronger drinks that
went out with the incoming of prohibit
ton. and that the increase in cost of
the harmless drinks will add to delay
in weaving the people from a desire
for the stronger drinks. The commit.
tee thought these cereal beverages and
fruit juices had been aided consider
ably by recent legislation and should
be willing to help bear in greater H.
gree the burden Of Government, part