The Birmingham age-herald., 1921-09-17
SENATE CHANGE s IN HOUSE TAX LAW
 ARE SETTLED TODAY
Many Alterations Made In the Lower House BilI-Treas- ury Will Lose By
 Shifts

Washington, Septem Der t6.-Revi' sion of the House tax bill virtually was completed by the Senate finance committee, which under the present agreement will report to the Senate a measure having these outstanding proposals:
 Repeal Of the excess profits
 tax as of next January I, pro-
 posed by the House.
 Reduction of the income sur-
 tax rates from maximum of
 65 per cent to 32 per cent, ef-
 fectiye next January l.
 An increase in the corporation
 Income tax from 10 per cent to
 15 per cent. effective next Janu-
 nry 1, instead ot I2M per cent,
 as proposed by the House.
 Repeal of the corporation cap
 itai stock tnx as of next year.
 Retention of present rates on
 express packages and oil by pipe
 lines and retention of the taxes
 
 on freight and passengers for
 the calendar year. I022, at only
 half the present rates of 2 per
 cent and per cent. respectively.
 The House proposed repeal of nIi
 of these taxes as of next Janu-
 ary l.
 necrcnSe Surfnr
 In agreeing to the House maxi mum surtax rate of 32 per cent the Senate committee adopted today re arranged schedule of rates under which individuals having incomes of from ;5.0oo to s6.o00 would be re- lieved of the present surtax of l ger cent Beginning with incomes of 5000 and ending with those of s20,. oeo. the rate in each bracket would be reduced per cent. In the orack cts, from s20,000 to s34.000, the ex- isting rates would be increased per cent, and iH the brackets from s34.- oo0 to $66,O0o, the present rates would stand. Incomes of s66, 900 or more would be taxed at the maxi mum rate.
 Members of the committee ex- plained that through this plan and the increased exemptions allowed to heads of families and on account of dependents there would be a redIc- tion of the income taxes all along the line, except in the case of sim gle men having incomes of S5,ooO or less.
 The loss in revenue through the ar rangement of the surtax was esti- mated by treasury experts at SIS, ,000,- o00. making the total annual loss in individual income taxes s17s,000, 900, $s9.000,000 through reduc- ton of the maximum surtax rates and $70.000.000 through increased ex- emptions to heads of families and on account of dependents.
 Ask Early Passage
 Chairman Penrose announced today that in offering the bill in the Senate he would ask that 1t be made the un- business so as to bring early consideration. IAe was of the opinion that It's passage would not be long delayed. After the Senate acts. the Dill will go to conference for the com posing of differences between the Senate and House.
 senator Smoot Utah, republica n member of the finance committee, ians to offer In the Senate as a sub sutute for the whole measure his bill, Tn which is incorporated a manufac- turers tax plan. This measure has the support of number of manufac- turers' associations, represent tives of which were in conference here this week.
 final vote on the bill was de- lerred today until next Wednesday, but the cofhmittee will hold another session tomorrow to gather up loose ends. At that time Senator Shoot will offer his sub bill and Senator salder repu blican, New York, plans 10 introduce his proposal for tax of 10 barrel on 2.75 per cent beer.
 The committee reconsidered today It's decision to include in the bill a manufacturers' tax of per cent on proprietary medicines. and adopted the House prsposal to rePove all taxes on these articles. It's proposal Tor per cent tax on cosmetics, per- fumes and toilet preparations in lieu 'f the present stamp taxes effective next January l, stands, however
 Fix Soft Drink Tax
 In order to make the taxes on soft irinks uniform, the committee voted 10 fix the tax on finished fountain 'yrups at 11a cents a gallon, instead of 10 cents.
 The House plan to impose a per cent manufacturers tax on the entire selling price of a numbef f 'f articles If sold in excess of specified amounts. was amended so that the lax would be paid only on sthat DOT ion of the selling price in excess of fixed sums.