Daily Kennebec journal., 1921-08-09
Means Loss in Revenue of Less
Than S5O,0OO,OOO - First
Step in Rcadjustment to Re-
duce National Tax Burden
Half a Billion

Washington, Aug. S-Agreement
to eliminate the taxes on fountain
drinks and ice cream and the So
called luxury taxes on wearing ap-
parel is understood to have been
reached today by Republican mem
bers of the House ways and means
committee, sitting in executive scs-
sion. A reduction of one half in the
10 per cent. levy on sporting goods
also is said to have been agreed
upon.
The total loss of revenue from
these proposed changes would be
slightly less than SJ0,000,000 and the
reductions ure the first to be passed
upon by the majority members IN
their effort to carry out the an
nounced program of Republican
House leaders TO cut half billion
dollars from the national tax bill.
The wearing apparel levies proposed
amount by which the cost of Wom-
ems and misses hats. bonnetS and
hoods exceed $15 each; women's and
misses silk stockings or hose exceed
s., per pair; mems, women's, misses
and boys boots, shoes, pumps ana
slippers exceed $40 per pair; mems
and boys silk stockings or hose ex-
ceed 81 per pair; mems shirts exceed
s. each; mems and boys hats exceed
So each; mems and boys caps eX-
ceed s. each; mems and boys neck
ties and neckwear exceed 81 each;
mems, women's, misses and boys
pajamas, nightgowns and underwear
exceed 50 each; kimonas, petticoats
and waists exceed $15 each; mems
waist coats, sold separately from
suits. exceed s. each and house or
smoking coats or jackets and bath
robes or lounging robes exceed $40
each.
The sporting goods on which it is
proposed to cut the tax in half in
clude: Tennis rackets, nets, racket
covers and presses, skates. snow
shoes, skis, toboggans, canoe pad
dies and cushions, polo mallets,
baseball bats. gloves, masks, protec-
tors. shoes and uniforms, football
helmets. and harness and goals. bas-
ketball goals and uniforms, golf bags
and clubs. Lacrosse sticks, ball or all
kinds. including baSebans, footballs,
tennis GOLF. Lacrosse, billiard and
lizard and pool table, chess ana
checkerboards and pieces. dice
games and parts of games, (eXcept
PLAYING cards and childrens toys
and games) and all similar articles
Repeal of the 10 per cent. tax on
carbonated bottled beverages which
is collected and paid by the manu-
facturer monthly, also was discussed
at the meeting. and favorable action
was predicted by some members of
'he committee. who argued that it
was not fair to remove the tax on
drinks at fountains in the cities and
retain the levy of the bottled goods
sold largely in the rural districts
1t is understood there was q sug-
sestlon that the committee appoint =
delegation to go over the whole situa-
ton with President Harding and Sec
retary Mellon to obtain their counsel
ana TO urge that the executive depart
nents hold down rigidly on expendi-
lures So far as was disclosed, no
action was taken.
Estimates before the committee to-
day were said to have contemplated
total cuts of approximately $579.O0O.-
300 in probable expenditures for this
hscal year. leaving the total at, s3.-
'05,000,0OO exclusive of postal, esti-
mated at s575.00O000. Re ductions
proposed included $3.50 900 for the
army. s57,000,000 for the navy. $780,
100000 for the shipping board. S245.-
100000 for the railroads, and $780,
100000 proposed by the treasury to be
employed in redeeming war savings
securities.
Tax reductions suggested totalled
s720,000,000. including $3.50. 900 ex-
cess profits, S90,000,000 income sur
axes S50,000,000 nuisance taxes. and
l3O,0OO,000 transportation tax. AS an
offset against these reductions esti-
mated increases in AL income included
S262,OOO,OOO from the proposed ) per
cent. increase in the corporate income
ak to offset the excess profits levy.
'70,000,000 from customs because of
he proposed new tariff law, and S6O.-
100000 from the sale of surplus war
supplies.