The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1921-08-19
NEWS review OF
CURRENT EVENTS
Revenue Bill Makers Find Way to
Reduce Taxes by About
Half a Billion.
GOVERNMENT EXPENSES CUT
Income Tax Allowance for Depend
ents Doubled-Grain Exchange
Regulation Bill Passed by
Senate-SiIesian Question
Referred to League
of Nations.
BY EDWARD w. PicKARD.

Although 1t has been freely and
generally predicted that the Repub-
licans would be unable to carry out
this year their party pledge to lower
taxes, that the revenue bill would
show only revision and not reduction
because of the necessarily large ex-
penses of government, it now appears
they have found a way to fulfill the
promise. President Harding and the
majority leaders of the house got to-
! gether last week and agreed on
-ogram by which government expen,
Lures viii be cut $516,000.000. This
calls for the raising of S3,015,UO0,000
from internal taxation, which is $495,-
100000 less than the total which the
treasury estimated would be the yield
OF the present law during the fiscal
year, 1922. The total to be raised
from all sources, but not including
postal receipts, will be S4,034000, 900.
According to the agreement, saving
in the various departmental appr6-
priations will amount to $35000,000,
and q plan was devised whereby the
public debt expenditures will be re-
duced S150.000,0O0
1t was the earnest desire of the Re
publican leaders that the imposition
of new taxes be avoided, and under
the present plan the proposed so tax
on automobiles, the Scent postage
and 2-cent stamp on bank checks will
be unnecessary.
OF more immediate interest, per-
haps, to the average citizen was the
action of the ways and means COM
mittee of the house, which is framing
the revenue bill, concerning the per-
sonal income tax 1t. was voted that
the allowance for each dependent
shall be $500 instead of 5000 as at
present, which means greatly in
creased exemption for the man with
a large family. A proposition to in
crease the present exemption of ST.
coo for single persons and $1,000 for
heads of families to $500 and $500
respectively was voted down. This
would have meant a loss of revenue
of nearly fifty million dollars. An
other change adopted was the reduc-
ton of the tax on very large incomes.
There will be no tax above the 80 per
cent now levied on incomes of $780,
OOO-which will be relief to about
ten thousand of our wealthiest citl
zens, but will not call for cheers
from the rest of US.
The committee also decided on a
complete repeal of taxes on freight,
passenger and Pullman transporta-
ton, and increased the fiat corpor-
alton tax from 10 per cent to 10 per
cent. In this and other respects the
committee disagreed with the results
of the conference with the President,
and the changes 1t has made to date
lower the yield from internal taxes
to 5000 100000. OF course all these
things are dependent on further ac-
ton by the committee and acceptance
by the house and senate.
The losses in revenue below the
present law which will result from
theAprogram as itanow stands include
$3.50, 600 600 from repeal ofsthe excess
profits tax. $9O0OO,000 from theirs
duction IN the higher surtaxess $145,-
100000 from repeal.~of the tax of 8
per cent On freight, S100000,000 from
repeal Of the tax of 8 per cent on
passenger transportation, $s;ee9leees
from the repeal of the 8 per cent tax
onAPullman charges, $25,000,00o from
the repeal of the soda fountain tax,
S15,O0O,0O0 from the repeal of the
tax on proprietary medicines, besides
a few smaller items which bring the
total up to 1891 100000.
Increases made offsetting these loss
es In revenue included S263,000,000 ad-
ditional from changes in corporation
taxes, $66,000,000 additional from the
new soft drink taxes, and SS000,000
from the new tax on proprietary med
icines, making total Of 1897 100000.