Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-11-10
NEW TAX MEASURE
PASSED BY SENATE

WASHINGTON, Nov. S.-The tax
revision bill now faces it's third re-
writing, this time by the house and
senate conferees.
The measure finally was passed
early today by the senate, 80 to "a,
at the end OF a continuous session
lasting nearly sixteen hours. 1t
will be returned to the house when
that body FeconveneS tomorrow, and
Republican leaders there plan to send
it to conference Thursday. 1t may
reach the president for his approval
late in the month.
At a rough estimate treasury eX-
perts say the bill in its present form
would net approximately $3,250,OOO,-
600, or 5000, 900 less than the
present law, and about the amount
of revenue which treasury officers
have said the government must have.
Eventually the bill, the experts as
sert, would reduce the nations tax
toll by about $3.50, 100000 a year.
While they undoubtedly will make
many changes in the measure, the
conferees are not expected to ma
terially alter the total of revenue.
AS the bill now stands there are
just three major provisions on which
the house 'and senate agree. They
are repeal Of the excess profits tax
and the transportation taxes on next
January /, and the retention of the
present tax on corporation capital
stock.
Provisions of Bill
Other outstanding provisions of
the bill are:
A reduction in the maximum sur
tax rate from IS per cent on all
over $1,O00,O00 to fifty per cent on
all over $200,000, as against the
house reduction to SO per cent on
all over $68,000.
granting increased normal eXemp.
tons of $500 to heads of families
having net incomes of $4,000 or less
and 5000 on account of dependents.
Repeal of the excise take on chew
emption to corporations except in
the case Of those having net in
comes of $25, 900 or less.
An increase in the statet tax maxi
mum rate from 25 per cent on all
over $10,000,000 to fifty per cent
on all over 100000.
Increased taxes on medicinal beer,
wine and whisky.
A provision taxing gifts of prop
erty by any person at rates rang
ing from one per cent on the
amount between 100000 and $4,000
to 25 per cent on all over $4,000, 900.
Repeal of the excise taXs on chew
ing gum, sporting goods, musical
instruments, electric fans, and many
other articles as well as the stamp
taxes on proprietary medicines and
toilet preparations. The levies on
fountain drinks and ice cream also
are out.
The big fight between the senate
and house is expected to develop
over the income surtax rate with
the general belief at both ends of
the capitol that the conferees will
reach a compromise at a figure
around forty per cent. House Re
publican leaders believe they can
scotch the movement among some
Republican from western states to
have the house instruct it's man.
ayers to accept the senate maximum
rate.
Amendments Beaten
In the final drive in the senate
last night to pass ire bill many
amendments were offered, but few
of them were accepted. The most
important of those approved was
that taxing gifts of property, which
is designed to prevent evasion of
the surtax by wealthy individuals
by a distribution of their property
among their relatives.
Under another amendment gains
realized by tax payers from the sale
of corporation stock would be taxed
f151I -
only forty per cent, as it was claim
ed would be the case had the cap
ital asset definition in the bill re-
manned unchanged.
Outstanding features Of the tax
revision bill as passed by the SEN
ate provide for repeal of the excess
profits tax and all of the transporta-
ton taxes on next January, 1, and
a reduction of the surtaX rates all
along the line, with the maximum
rate reduced from IS per cent to so
per cent.
Besides these changes the bill
would repeal taxes on:
Parcel post packages.
Proprietary medicines, toilet soaps
and toilet soap powders, tooth pastes,
tooth and mouth washes, toilet pow
ders and petroleum jellies STAMP
taxes.
Pianos and other musical instru-
ments.
Umbrellas, parasols, sun shades,
picture frames and various articles
of, wearing apparel costing in eX-
cess of certain amounts (so-called
luxury taXes).
Insurance premiums.
Articles made of fur.
Moving picture films.
Ice cream.
Chewing gum.
Sporting goods, including billiard
balls and tables, pool tables ar@- dice.
Admissions where the cost does
not exceed ten cents.
Pleasure boats and canoes costing
less than 500.
Thermos and themostatic bottles
and jugs.
Portable electric fans.
Bonds of indemnity and surety
STAMP taxes.