The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-09-17
MANY CHANGES MADE
In PROPOSED TAXES
OF THE LOWER HOUSE
Reduction Of the Income Surtax
Rates From a Maximum of
65 to 80 Per Cent.
CORPORATION INCOME
TAX TO BE INCREASED
Final Vote on the Bill Was De-
ferred by the Committee
Until Wednesday.

WASHINGTON. Sept. Revision
OF the house tax bin virtually was
completed today by the senate finance
committee, ich under the present
agreement VIII report to the senate
measure having these outstanding
proposals:
Repeal Of the excess profits tax as
OF next January /, as proposed by the
house.
Reduction or the income surtax
rates from maximum OF SIS per cent
10 82 per cent. effective next Janu-
airy 4.
An increase IN che corporation in
come tax from 10 per cent to is per
cent. effective next January 1. instead
OF ~ t-2 per cent, as proposed by the
house.
Repeal OF the corporation capital
stock tax as OF next year.
Retention Of present rates on ex-
press packages and oil by pipe lines.
ana retention OF the taxes on freight
and passengers for the calendar year
1922. only, at half tho present rates
OF 3 per cent and per cent respec-
lively The house proposed repeal OF
all of these taxes as or next Janu-
ar
nj agreeing to the house maximum
surtax rate OF 80 per cent, the senate
committee adopted today q rearranged
schedule OF rates under which indl-
yiduals having Incomes OF from $4,000
20 $4,000 would be relieved III the pres
ent surtax OF i per cent Beginning
with those OF 500 1000. the rate III each
bracket would be reduced / per cent.
IN the brackets from $4,000 TO $4,000
the existing rates would be Increased
one per cent and IN the brackets from
$4,000 10 $4,000 the present rates
would stand. Incomes of $66,000 or
more would be taxed at the maximum
rate.
Members OF the committee explained
that through this plan and the in
creased exemptions allowed to heads
OF families and on account OF depen-
dents there would be reduction Of
the income taxes all along the line,
except III the case OF single men hav-
ing incomes OF $4,000 or less.
The loss in revenue through the re-
arrangement OF the surtax rates was es-
timatod by treasury experts at $4,000. 600
making the total annual loss in individual
income taxes @AoVtVVVuuVs including 33u.-
100000 through reduction OF the maximum
surtax rates and s70.0o0.O0O through in
creased exemptions to heads OF families
and on accountof dependents.
"A final vote on the bin was deferred
today until next Wednesday but the COM
mittee hold another session tomorrow
to gather up loose ends. At that time,
Senator Smoot win offer his substitute
bin, and Senator Cadler. republican. OF
New York plans TO introduce his pro-
posal for a tax Of $5 barrel on ais per
cant beer.
The committee reconsidered today its
decision 70 include IN the bin manu-
facturers' tax OF two per cent on pro-
prletary medicines. and adopted the house
proposal 20 remove all taxes on these arr
ticles. It's proposals for a four per cent
tax on cosmetics, perfumes and toilet
preparations IN lieu Of the present stamp
taxes, effective next January 1, stands.
however.
IN order to make the taxes on soft
drinks uniform. the committee voted to
Xix the tax on finished fountain syrups
at IM cents gallon. instead Of 10 cents
The house plan to impose a five per
cent manufacturers tax on the entire
wholesale selling price Of a number OF
articles Il sold IN excess OF specified
amounts was amended so that the tax
would be paid only on that portion Of the
selling price Ia excess Of fixed sums
The house proposal for taxing life in
surance companies was approved except
that they would be required to pay 4 Is
Per cent tax ON their Investment income.
etlective as OF Last January /. instead OF
AlA per cent rate. The present taxes
on premiums would be repealed as II
next January 1. Fire, marine and other
insurance companies would be taxed as
~ present except that the higher corpor-
alton income tax would be imposed.