The Sneedville news. (Sneedville, Tenn.) 191?-19??, 1921-08-19
Revenue Bill Makers Find Way to
Reduce Taxes by About
Half a Billion.
GOVERNMENT EXPENSES CUT
Income Tax Allowance for Depend
ents Doubied-Grain Exchange
Regulation Bill Passed BY
Senate-Siiesian Question
Referred to League
Of Nations.
ev EDWARD w. PIckARp.

Although II mas Detl Ifetiy Hnu
generally predicted that the Repub
licans would he 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. IL now appears
they have found way TO fulfill the
promise. President Harding and the
ajority leaders OF the house got to-
gether last week and agreed on .
program by which government expen-
ditures will be cut x510.000.OO0. This
calls for the raising Of x3.075.O00O00
from Internal taxstion. which r. s4aS,-
0sO.OOO less than the total which the
treasury estimated would be the yield
of the present law during the fiscal
year, 1922. The total 10 he raised
from all sources, but not including
postal receipts. will be Si,03i.V0,OOo.
According Ia the agreement. saving
I'm the various departmental appro-
priatlons will amount TO S35.WOoOO.
and a plan was devised whereby the
public debt expenditures will he re-
duced s150.OO0.OO0.
II was the earnest desire Of the Re
publican leaders that the imposition
Of new taxes he avoided. ield under
the present plan the proposed SO tax
ON automobiles. the Scent postage
and 2-cent stamp un bank checks will
he unnecessary.
or more Immediate interest. per
haps 10 the average citizen was the
action of the WAYS aud means cain-
mittce of the house. which IL framing
the revenue bill. concerning the per
sonal income tax. II was voted that
the allowance for each dependent
shall be- $500 instead of S20 n ut
present, which means "A greatly In
creased exemption for the man with
large family. \ proposition 10 In
crease the present exemption of ST.
WO for single persons and $1,000 1or
heads of families 10 81 so aud $500
respectively was voted down. This
would have meant lass of revenue
Of nearly fifty million dollars An
other change adopted sas the reduc- |
tion of the tax on very large incomes |
There will lee nu tax above the - per I
cent now levied on INCOMES 81 S'si. 1
co-which will be- relief TO about
ten thousand at our wcalthirst ciii- 4
zens. hut will not call for cheers 4
from the rest Of u<
The committee also decided on a
repeal of taxes on freight.
passenger and Pullman iranSpurta-
ton. and Increased the fat c"r,nr-
alton tax frnm 10 per cent To- ~ per
rnt. In this aud other rrSperiS the
Disagree with iise results
n the conference with The President.
and the changes n has mad. 10 ,iat.
ow"r the yield from Internal tax..>
I" Si1eOs0Gp OF course all these
hlngS are dependent ON further ac-
ion by the committee aud acceptance
" the h"usc aud senate
The LOSSES in revenu. hs.low IN.
present law which WIN result from
he program ~ 10 now stands include
45OO0.uoo FROM releai IL the excess
'rofts tax. Ssn.OppUsp from 10. re-
ucti"n IN the higher SuriaxeS SI4s.-
soO1 from reIsal 81 the tax u ?
er csTlt on fright. SluDWaOp from
epeal Of the tax ~ : pr c.nf On
.assenccr transportation. SSg1Osa
rom the repeal - the : Ter rs-nt tax
n Pullman charges. Sg5.0apg0 from Z
b. rprenl ~ %. ~osia fountain tar.
15.pnUn from the rrreal 20 the
X On proprietary medicines. besides ,
few smaller Items which bring the
ltal NJ to SOL .eDesl Z
Increases made orsetting these loss