The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-11
BIC TAX SLASH
NOW EXPECTED
FOR YEAR 1921
Married Men to Get Bigger Ex-
emptiOn on Incomes.
Makers to Pay Duty on All
Patent Medicines.
MAKE FINAL DECISION FRIDAY
Excess Profits Tax Repeal To
Be as of Jan. 1921.
All Taxes on Soft Drinks To Be
Taken Off.
Makers to Pay Duty on All
Patent Medicines.
MAKE FINAL DECISION FRIDAY
Excess Profits Tax Repeal To
Be as of Jan. 1921.

Washington, Aug. 11.-By the end
of this week the nation will know
definitely what its tax bill for the
next year is to be.
Elated by its success in overthrow
ing treasury recommendations almost
in their entirety and continuing 10
make changes as they see fit. the Re
publicans of the house ways and
means committee redoubled their ef-
forts today to rush the bill to COM
pletion.
The excess profits tax is to be re-
pealed as of January l, 1921, and
losses estimated from this source are
to be made up in profit from an in
crease of per cent flat on the 10 per
cent tax on corporation incomes.
All the higher surtaxes are repealed
and a new maximum of 80 per cent
established with graduated surtaXes
up to this amount for the calendar
year 1921, to be reduced to a surtaX
maximum of rs per cent for the cal
endar year 1922.
Express Tax Not Touched.
The transportation taxes on freight,
passenger, seats and berths are to be
repealed January l. 1922, but the
taxes on express are not included in
the action taken by the committee.
The taxes on ice cream, soda waters
and soda fountain taxes are repealed.
The bottled beverage taxes are shifted
to the manufacturer with taxes i'm
posed on fIavoring syrups and car
donated acid gas. On cereal bever-
ages, like near beer, the tax is in
creased from Is per cent ad valorem
to Is cents on a gallon; on fruit juices
from 10 per cent ad valorem to
cents a gallon on grape juice and still
drinks from 10 per cent ad valorem to
3 cents a gallon; on carbonated acid
gas cents a pound, and on finished
fountain syrups 10 cents a gallon-all
TO be collected from the manufac-
turer.
Cut Medicine Stamp Tax.
A straight per cent tax is levied
the existing stamp taxes. in order that
the tax may be collected from the
manufacturers.
An exemption is allowed on the first
$500 received in income on stocks or
in interest from building and loan as
sociations and home building thru
their assistance.
The ways and means committee
plans today to present the completed
bill to the house next Monday, have
1t adopted in a Republican caucus
Monday night and passed by the house
before the end of the next week.
Many Big Slashes.
The net reduction in the yearly tax
total, as a result of the committees
work yesterday. was estimated at
$685. 100000, with a total internal
revenue income for the government of
S3,110, 100000 loss in revenue, were
roughly estimated as follows:
Repeal of the excess profits tax and
higher income surtax brackets, $780,
100000.
Elimination of the freight and pas
senger and Pullman transportation
taxes, $253,OO0,0OO.
Increase OF the exemption allowed
heads of families for dependents from
$500 to $4OO for each dependent, $780,
100000.
Removal of the wearing apparel.
fountain and ice cream and stamp
levies on toilet preparations and pro-
prietary medicines. $4S,0OO,000.
Increased revenue figured upon in
cluded S263,OOO,OO0 from the 5 per
cent increases in the income taxes OF
corporations and $66,000.000 from
manufacturers, tax on fountain syrups,
toilet articles. proprietary medicines,
bottled beverages and grape juice.