Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1921-08-16

A reduction of $40, $3.50, 900 in the an
nual tax bill of the nation will re-
suit from the changes In the 1918
revenue act embodied in thenew ad-
ministration tax bill, Chairman Ford
ney of the ways and means commit
Zee declared in a majority report fill
ed today with the house.
WASHINGTON, ID. c., Aug. 16.--
The administration tax revision bill
was laid before the house of repre-
sentatives yesterday after the repub-
lican membership of that body in con-.
ference has changed so as to make
repeal of the excess profits tax and
the income surtax rates in excess of
SO per cent effective next January l :,
instead Of last January ].
This change on the basis of pre-
vious treasury estimates, would result
in the corporations and individuals
with large incomes paying to the gov
ernment in the next calendar year
something like 5000. 100000 more
than they would have paid had the ad-
ministration plan of making the re-
peals retroactive prevailed.
Total tax reductions for the fiscal
year under the bill as revised were
estimated by some majority members
Of the WAYS and means committee at
$3.50. .000.0 900. as against approx
ately $550.O0O, 900 planned by com
mittee republicans. and the total tax
yield at about $4,000, 100000.
As a result of the changes made
by the republican conference maiori-
ty committee members further
amended the bill before its presenta-
ton to the house so as to make the
corporation income tax 1914 per cent
after next January /, instead Of Is
ner cent as originally planned. and
the manufacturers tax on cereal bev-
erages cents a gallon instead of l2
cents.
Under plans adopted by the party
conference. the bill will be taken up
in the house at L a. m. "Wednesday
under a special rule calling for fin
al vote at n. m. Saturday. Two
cavs will be given over to general de-
bate and two davs to consideration of
amendments. under the five minute
rule. with amendmr-ts of committee
members given preference.
Much Of the sixteen thorsand-odd
words of the tax bill is cevp'ed TO
amendments of the administrative
and definitive sections of the present
law, which were drafted by the treas
ury experts with view of clarifica-
tion of specific portions of the 1918
bill and meeting situations arising
from decisions Of the supreme court.
Aside from the revisions Of the
levy sections already referred to the
bill proposes repeal Of all Of the
transportation taxes. effective Janu-
arv |. increased exemption to heads
of families and married men having
incomes of less than $4,000; decrease
in the levies on candy. sporting goods
furs and art and art works: substitu-
tion Of manufacturer taxes for the
so-callcd nuisance and luxury taxes
and other changes. details Of which
have been given in previous Associ-
atcd Press dispatches.
Additional rcvisionS include eXemp
ton from taxation Of the salaries Of
the president of the United States
and the Judges of the supreme and
inferior courts and also amounts re-
ceived bv individuals as compensa-
ton, family allotments and allowanc-
es under provisions Of the war risk
insurance and vocational rehabilita-
tion acts.
A change is also male in life in
surance comnanv taxation. the bill
requiring them to pay the normal cor
noration tax in lieu Of the levies on
policies when written and all other
rresent taxes. cxccpt the corporation
stock tax and certain stamp taxes.
Fareign life insurance companies
would paw on the net incomes from
sources within the United States.
Another important section of the
new bill outlines plan to tax Ameri
can concerns doing practically all of
their business in foreign countries
WHY VIi NHt lItVif' ttNtlNth HUN
American sources. They now are tax
ed on their entire income. which is
contended to place them at a disad-
vantage with competing foreign con-
Germs.
Personal service corporations
freed by the supreme court from cor
no~at'on taxes, would be brought spe-
officially under the corporation in
come tax bv the bill and provision
is made that if the partnership tax
of the 1918 art on individual stock
holders Of such corporations should
be declared invalid. 'there shall in
addition to all other taxes, be levied.
collected and paid on the net income
Continued on Page Three)