The Birmingham age-herald., 1921-08-14
HOUSE COMMIJ : MPLETES REVISE
 OF 1873 TAXLAW
Believe Bill as Agreed on Will Produce 3 Billion Mellon Estimates Will Be
 Necessary

Washington, August 13.-Revision of the 1918 tax law was completed today by republican members of the House ways and means committee with the adoption of these additional changes:
 Repeal of the express and oil pipe line transportation taxes. effective January 1, 1922.
 Imposition of license tax of S1O on vendors of soft drinks, effective upon enactment of the bill
 Substitution of a manufacturers' tax of 12 cents a gallon on cereal beverages tnear beer) for the present levy of 15 per cent, effective upon enactment of the bill.
 Imposition of . $ per cent tnx on the full manufacturers' selling price of the following articles If sold by the manufacturers at levels in excess of those specified,
 Carpets and rugs, $3.50 per square yardj trunks, S3O.0O each, vafises, travelling bags, suifcnse~, h&t boxe. used by travellers, and fitted toilet cases, 41A eachg purnes, pocketb0ok ks, shopping and hand bngs, S4 each, portable lighting fixtures. including lamps of all kinds and shades, SI0 eachy fans, s1 cachy md house or smoking coats or jackets and bath or lounging robes $3 each. These taxes also would become ef- fective upon enactment of the bill. Will Produce Three Billion Announcing completion of their work, members of the committee said they believed the bill as agreed upon would produce the S3,000, 900, 900 to- tai which Secretary Mellon esti- mated at the White House tax con ference last Tuesday it would be necessary to raise from internal revenue next year Not all of this sum would be collected on this years business. however, as the total in- cludes $500. 1000, 900 which treasury of- ficials believe can be collected on back taxes.
 The bill as finally drafted by the committee will be presented, to the House Monday. under present plans of republican leaders and will be passed next Saturday after two days of general debate and two days con- sideration of amendments under the five minute rule. From the House 1t NAAA 6o ttO Ln6 Dtn6tc where the H. nance committee will consider 1t dur ing the proposed congressional re cess with view to reporting to the senate when Congress reconvenes. probably late in September. With the removal Of the express and oii pipe lines taxes, the commit | tee eliminated all of the transports ton taxes. No change was made. however in the levles on telegraph. telephone, cable and radio messages, this section of the old law remaining in force.
 Continue Until January The manufacturer tax of 5 per cent on carpets, trunks and other ar ticiesl IS demanded to replace the so- called luxury levies now in force in cluding those on wearing apparel. but the plan Is to continue these taxes, collected and paid to the government by the retailers. until next January l, despite the fact that the manufac- turers tax would become effective upon enactment Of the bill.
 The license tax on vendors of soft drinks is new levy. exclusive of the manufacturers tax on syrups used at fountains and unfermented beverages, carbonated waters or beverages or other soft drinks sold in containers
 besides the changes agreed upon
 
 today, the bill as it will be presented to the conference of House repubIf- cans Monday will contain, members said. these provisions:
 Other Provfsions
 -. Repeal of the excess profits tax and an increase in the income tax on cor porations From 10 to 5 per cent with. the $1,0o0 exemption retained, effec- tive January l, 1921
 Repeal of the income surtax brack- cts above s2 per cent effective Jan uary l. 1921 rs Repeal of all forms of transporta- ton taxes. effective January l. 1922. An increase from s2,00o to $2,5oo in the exemption to married men having an annual net income of s5,0o0 or less. effective January -- 1921.
 An increase in the exemption .o heads of families on accounts of de- pendents to s400 for each dependent. instead of s200 as at present, effec- tive January l, 1921
 Exemption from tax of the first $500 of income received by indivii-
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