The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-11-20
CONFEREESEND
DIFFERENCES IN
REVISING TAXES
Accept 12 1-2 Per Cent Levy on
Corporation Incomes and SO
Per Cent Private Surtax.
NUISANCE" CHARGES TO GO
Completed Bill Expected to Be
Passed in Time for Adjourn
mont Wednesday,

Ahe tax revision bill by fixing the cor
poration income tax at 12h per cent
and rejecting the Senate amendment
levyins q heavy tax on liquors. wins
and beer.
The hin win be' laid before tho
House under an order for suspension
Ct the rules tomorrow and viii be
taken up by tho Senate on Tuesday.
Republican leaders in both houses
look for the Senate and House to &C
ospt the bill in the form into whch
It was shaped by the conference com.
mite, 60 that final adjournment OF
the special session can be had Wed-
nesday, night.
The bill. It will be reported by thu
conferees, will raise sufficient rev.
enue" to meet the expenses OF the
Federal Government during the
present fiscal year and the next CAL
ender year. according to Chairman
Penrose, Of the Senate Finance Com
mtttee. Committee experts have not
completed their exact estimates Of the
expected revenue yield. 50
Revision In Next Session.
Further revision will be undertaken
during the next session OF Congress.
Senator Penrose said.
'If the Government Is going to go
into the business of the soldiers
.bonus--and some sort Of q bonus bill
will be passed In the next session
new. heavy tax levies will have to be
made and new methods Of taxation
will have to be found" Senator Pen
adequate to meet present needs"
Does your statement mean that the
sales tax win be adopted for the
bonus1" Senator Penrose was asked.
II cannot say now whether the
aales tax will be adopted or not" the
Senator replied. II am not opposed
to the principle of the sales tax. and
II the House should adopt the sales
tax in some form I probably would
support II for the bonus"
The oonferoes restored tho House
rate Of 1871 per cent for tho corpora
Ton income tax. In place Of the Sen
ate levy Of Is per cent. The tax at
present In 10 per cent.
Exemption Provision Changed.
In adopting the 12M per cent cor
poration tax. however. the Senate in
sisted upon the House conferees ac-
cepting tho Senate amendment which
makes tho $4,000 exemption granted
all corporations at present apply after
January I, 1922. only to corporations
having net income of SIS 900 or less.
The Senate conferees receded on the
wadsworth amendment levying a tax
Of l$6.40 o gallon on distilled liquors,
$1.20 a gallon on vino and so cents
gallon on beer. The tax under exist
ing law was restored, which Is a flat
tax Of $4.20 q gallon on all distilled
liquors and an additional levy of 34.20
q gallon on liquors withdrawn for non
beverage purposes and later found to
have been diverted to beverage pur-
poses.
The conferees also agreed upon q
provision permitting individuals to
nav a tar Of only 12h per cent on
gains in the sale of capital assets, the
same rate AZ paid by corporations,
when these gains under existing law
would be subject to a heavy individual
income surtax.
$1,000, 900. 900 Estimated Yield.
The tax revision bill. as agreed upon
b. the conference committee. It Is es-
timated by tax experts, will yield
slightly more than $4,000, 100000 an
nually.
The principal provisions Of the bill
are:
The excess profits tax is repealed,
effective January 1, 1922.
All transportation taxes, including
those on express and parcel post pack
ages and freight, passenger and Pull
man transportation, are repealed as
Oh Janaury 1, 1922. Tho existing tax
and wires IL retained.
The normal rates for tho individual
income tax are unchanged. Surtaxes
are reduced about l per cent for each
Of the existing brackets, and the maxi
mum is reduced from 65 per cent to 80
per cent. which Is reached on incomes
Of 100000
Increased exemptions are granted
individuals in their income taxes.
The exemption for heads OF families is
increased from $4,000 to $4,000 on In
comes Of not more than $4,000, and
for dependents from 5000 to $500.
Travelling expenses incurred by in
dividuals while away from home on
business, rentals paid by ministers
Of the gospel and the first 5000 Of in
come received from interest or divi-
Asnds OF building and loan associa.
tens also are exempt.
nuisance" Taxes Wiped Out.
Existing stamp taxes, the soda
fountain tax, the tax Of cent on adj.
missions to motion picture shows
N00I0 tho pIiCo 10 ~ Ceutb UT leSb, dI1u
all of tho so-called nuisance" and
, luxury" taxes, with few exceptions
arc repealed Taxes on wearing ap
parel, sporting goods. furs and fur
al&icles. and musical instruments are
among those repealed. A reduced tax
OF per cent will be continued on
travelling bags, pocketbooks, fans
canes, umbrellas, and similar articles
sold above certain specified prices
tho tax to be paid by the manufacture,
er instead Of the purchaser.
The inheritance taxes, tobacco
taxes and the existing tax on child
labor remain unchanged.
Indications were present today that
President Harding would sign the
bill when II reaches him, despite the
fact that he was disappointed by the
rejection OF his proposal for a 40 per
cent surtax.
Congressman Mondell OF Wyoming
Republican House leader, conferred
with the President today on the sur
tax measure and expressed the belief
that the President would not veto the