The Birmingham age-herald., 1921-09-15
SENATE ID CHANGE
 HOUSE TAX LAWS
Agree With House Bill on Items But Disagree on the
 Transportation Feature
By Associated Press


 Washington. September 14-Many House proposals for tax changes were rejected or sharply modified today by the Senate finance commit tee. Probably the most far-reachinz decision of the committee was that to restore all transportation taxes, but With those on freight passenger and Pullman accommodations in force only for 1922 and at half the present rates. The House bill provided for repeal of all of these levies next Jan uary 1.
 while agreeing 10 the House plan to repeal stamp taxes on perfumes. cosmetics, toilet preparations and proprietary medicines, the committee voted to impose a manufacturers tax of per cent on toilet articles and 2 per cent on proprietary medicines, and to restore the 8 per cent tax on toilet soaps and powders which the House bill proposed to repeal.
 Five per cent reductions in the taxes on fur articles, motorboats auj yachts, portable electric fans and works of art agreed upon by the House were disapproved by the con. mittee, which voted to continue tie present rate of 10 per cent in each case.
 Cut Candy Tax.
 The section of the House bill re- ducing the tax on candy from 5 per cent to per cent was amended to provide that candy sold at whole sale for more than 40 cents pound should bear tax of 10 per cent
 In accepting the House reduction from 10 to 5 per cent in the tax on sporting goods, the committee Ge- cided to make taxat,se skates, snow shoes, skis, toboggans and baseball football and basketball equipment which were eliminated by the House
 Under new section added to the House bill the committe proposed that the tax on chewing gum be re- duced from 3 per cent to per cent. The House measure made no change in this levy.
 The House provision repeating all of the so-called luxury taxes was accepted, but the committee deferred action on the proposal to impose a manufacturers tax on number of articles on which retail tax is now imposed.
 Sections of the House bill accept ed without change included those re- lating to taxes on cereal beverages and soft drinks; repeating the tax on eyeglasses and spectacles; elimi- hating the license levies on yachts Snd motor boats of not more than five tons or not over 32 feet in length and imposing tax of 10 per cent on camera lenses. The beverage tax changes were accepted, however, subject to possible amendment after further information on this bject has been furnished by treasury ex- perts.
 Favor Shoot Bill
 While the Senate committee was revising the House measure, repre- scntatives of manufacturing interests in conference here decided to sup port and work for tax revision pro gramme substantially the same as that which Senator Sooth, Utah, re- publican member of the finance com mlttee, has announced he will offer as a substitute for the pending meas ure. The main features of the pro-
 Enactment of a new general manu- lecturers tax.
 Retention of present income taxes on individuals, with revision of sur taxes.
 Retention of present income tax of 10 per cent on corporations
 Retention of existing taxes on to- bacco, narcotics and oleomargarine.
 Retention of existing inheritance taxes.
 Spokesmen for the manufacturers explained that the proposed manu- lecturers tax was not general sales tax inasmuch as it would be levied, assessed, collected and paid upon every commodity manufactured. pi oduced or imported when sold. leased or licensed for consumption or use without further process of man ufacture."
 The rate of the proposed manufac- turers' tax was not agreed upon, but t was stated that discussion revolyed around a maximum of 3 per cent
 Action of the Senate committee to- day in voting to recommend restora- ton of the transportation taxes and changes in other proposed excise levies was taken despite assurances from Secretary Mellon and Director of the Budget Dawes that the s350,- 100000 reduction in government ex- penditures agreed upon at the White House conference last month would be effected. Senators said they want ed wider margin between govern ment income and outgo than would be provided If the House changes In the present law had been accepted.
 Revised estimates to savings prom ised by the several departments frr this fiscal year were submitted to the committee by Director Dawes.
 Under the revised estimates the war department would spend $780, 000.000 this fiscal year, the shipping board $1o0.00o.ooo and the outgo for the railroads would be $456.000,00 No estimate was made of a reduction for the navy department, which MT. Dawes said was still under advise ment.
 "Continuous executive pressure will he applied in this connection, as well as upon all other departments" the budget director promised.