The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1921-08-25
HOUSE PASSES
new TAX Law
MEASURE SUPPORTED By THREE
DEMOCRATS.
Goes to Senate Monday.
Fifty Party Men Join Democrats in
Asking for Repeal of Income
Surtax Above 80 Per Cent.

VISION DILL or 1871, estimated W CUT
sS1S, 100000 from the nations tax
burden by 1928, was passed late to-
day by the house, 274 to 125, on an
almost straight party vote.
Three Democrats supported the
measure and nine Republicans voted
against.
Compared with the number of Re-
pulicans were so who voted for a
Democratic motion to recommit the
bill for elimination of the provision
repeating the income surtax rates
above 80 per cent. This motion was
lost, 169 to 23O, with one Democrat,
Campbell, of Pennsylvania, voting
against it.
The bill will be sent Monday to the
senate, where it will be taken up
after the end of the recess on Sep
tember 21. Meantime the senate
finance committee will hold addition
al public hearings on the whole tax
question and probably revise the
nearly 100 committee amendments,
measure in a number of details. AS
finally passed by the house with
the bill is estimated to produce to-
tai of s3,470,0 900 revenue this ds-
cal year, or 1921, ,000,000less than the
estimates under the existing law.
As repeal of the excess profits tax
and higher income surtax rates
would not become effective until next
January /, the full force of the meas
ure will not be reflected in govern
ment receipts until the calendar year
1928, 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 approximately s512,000,00O.
Principal Changes.
The principal changes in present
tax levies made by the bill as passed
include:
Repeal of the excess profits tax.
Increase of the corporation income
tax from 10 to 12k per cent, effect
i've next January 1.
Repeal of the income surtax rates
from 80 per cent. to 65 per cent. in
elusive.
Increased exemptions to heads of
families, effective as of last January
/, to $4,000 for incomes not in ex-
cess of $4,000 and additional exemp-
ton for dependents to s400 from
5000.
Repeal of the transportation taxes,
effective next, January 1.
Repeal of the tax on life, fire and
marine insurance policies and impo-
sition of the corporation tax of 12k
per cent. on all such insurance COM
panies, except fraternal, effective next
January 1.
Repeal of the taxes on fountain
drinks, ice cream and other bever-
ages and the substitution of manu-
facturers' taxes as follows:
Four cents a gallon on cereal bev-
erages; cents pound on carbonlc
acid gas; 2 cents gallon on fruit
juices of soft drinks; cents a gal
lon on still drinks, exclusive of min
eral and table water, and ten cents
gallon on fountain syrups. These
changes would go into force on en-
actment of the law.
Repeal of the stamp taxes on per-
fumery, cosmetics, toilet preparations
and proprietary medicines upon en-
actment of the Law.
Repeal of the 10 per cent tax on
base ball, foot ball and basket ball
equipment, skates, toboggans, snow
shoes and skis, and reduction of the
10 per cent. tax to on tennis, golf
and polo equipment, games and the
like, the whole to come into force on
enactment of the bill.
Exemption from the income tax of
the first $500 of income from invest
ments in building and loan associa-
tions, effective at passage of the law.
Candy Levy Reduced.
A reduction of from to per cent.
in the levy on candy, and of from o
to 5 per cent. in the levies on fur
articles and art and art works, and
repeal of the tax on electric fans.
A reduction from 10 to 5 per cent.
in the tax on all yachts with motor
or other craft less than 80 feet in
length or of less than five tons car
rving capacity exempted from this
tax
Exemption from the income tax of
all allowances from the federal gov
ernment for the service of the bene-