The Mt. Sterling advocate., 1921-08-11
Luxury Tax May
Be Eliminated

Chairman Fordney and other Re-
publican members OF the House
Ways and Means Committee win
confer with President Harding in
Washington today on General sub
ject Tax Revision.
II is understood the discussion viii
center particularly upon what pres
ent estimated extraordinary ex-
penses can be provided through
other means than by direct taxa
ton. Secretary Mellon, Speaker
Gillett and other Republican lead
ers win participate in the confer
ence.
Agreement to eliminate the taxes
on fountain drinks and ice cream
and the so-called luxury tax on
wearing apparel is understood to
have been reached by Republican
members Of the committee, sitting in
executive session. 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 $50,O00,000 and
the reductions are the first to be
passed upon by the majority mem
bers in their efforts to carry out the
announced program Of Republican
House leaders to cut half a billion
dollars from the nations tax bill.
The wearing apparel levies pro-
posed for repeael are those of 10
per cent on the cost prices of:
Women's and misses hats, bon
nets and hoods exceeding SIS each:
women's and misses silk stockings
or hose exceeding So per pair; mems
women's, misses. and boys boots.
shoes, pumps and slippers exceeding
$40 per pair, mems and boys silk
stockings or hose exceeding 81 per
pair; mems shirts exceeding $500
each; mems and boys hats exceed
ing $5 each; mems and boys caps
exceeding 50; mems and boys neck
wear and neckties, exceeding $500
each; mems, women's, misses and
boys pajamas, nightgowns and un-
derwear exceeding $5 each; kimonas,
petticoats and waists exceeding SIS; |
mems waistcoats, sold separately
from suits, exceeding SIS each, and
house or smoking coats or jackets,
and bath or lounging robes exceed
ing $3.50 each.
The sporting goods on which it is
proposed to cut the tax in half in
clude tennis racquets, nets, racquet
covers and pressers, skates, canoe
paddles and cushions, baseball bats,
gloves, masks, protectors, shoes and
uniforms, football helmets, harness
and goals, basketball goals and uni
forms, golf bags and clubs, balls of
all kinds, including baseballs, foot
bells. tennis and golf; fishing rods
and reels, chess and checker boards
and pieces, dice, games and parts of
games (except playing cards and
ehildren's toys and games) and all
similar articles"
Repeal of the 10 per cent tax on
carbonated bottled beverages, which
i seollected and paid by the manu-
faeturer monthly, also was discuss
ed at the meeting. and favorable ac-
tion was predicted by some members
Of the committee, who argued that ii
was not fair to remove the tax on
drinks at fountains in the cities and
retain the levy upon the bottled
goods sold largely in the rural dis
tricts.
Before undertaking revision of
specific sections of the existing
revenue law, the committee major
ity spent several hours discussing
possible cuts in both taxes and ex-
penditures, together with the prob
able amounts of government income
other than internal revenue. 1t was
said that no formal agreement was
reached on any final totals.