South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-08-16
WILL INCREASE
U.S.. REVENUE
$2OO,OOO,O
Make Date of Excess Profits
Levy Repeal Effective
One Year Later.
LAY BILL BEFORE HOUSE
Call for Final Vote Satur.
day-DemOcrats May File
Minority Report.

By Associated Press:
WASHINGTON Aug. Is. = The
administration tax revision bil was
laid before the house OF representa-
tlves Monday after the republicaa
membership If that body in confer
ence had changed Il so as 10 mako
repeal Of the excess profits tax and
the income surtax rates in excess of
% percent effective next January /.
instead OF last January.
This change on the basis OF prs-
Vlous treasury estimates, would "a
suit in the corporations and indIvid-
uals with the large incomes having
TO the government fin the next car
endar year something like 500. O0A.-
700 more than they would have paid
Hao the administration plan OF max
ing the repeals retroactive prevailed
Total tax reductions for this fiscal
year undeF the bill as revised wer.
estimated by some majority mem
oers OF the ways and means com
mittee as S350,OOO,OOO as against an
proNmately $3.50, 100000 planned bv
committee republicans and the tota.
tax yield at about $500. 600.
Amend Measure
As a result OF the changes made
by the republican conference. mi
nority committee members amended
the bill before its presentation in the
mouse so as TO make the corporation
income tax 12iz percent after next
January j, instead OF Is percent as
originally planned and the mann
facturers' tax on cereal beverages
SIX cents a gallon instead OF u cents
Under plans adopted by the party
conference, the bin will be taken m
IN the house at IL a. IN. "Wednesday
under a special rule calling for a
hnal vote at 3 p. m. Saturday. Two
days viii be given over TO General
debate and two days TO consideration
OF amendments under the five-mfnute
rule, with amendments OF commit
tee members given preference.
Democratic members OF the bouse
plan to hold a caucus Tuesday after
noon 10 decide upon a course OF ac-
ton while the measure is under con
sideration- They are also expected
70 determine whether democrats OF
the ways and means committee SHAH
file a minority report Meantime the
whole committee will pass finally on
the bill. but this is expected 10 be a
mere Formally.
Lead Fight for Change.
The republican conference lasted
several hours, with western members
leading the fight 10 reject the plan
FOR retroactive repeal OF the excess
profits and higher income surtax
rates. which was agreed upon at the
white house tax conference last
Tuesday. Rep. Frear. Of Wisconsin.
"a member Of the ways and means
committee. was understood 10 have
insisted that the house pass on ef-
.fective date OF the bill. but the house
finally adopted by a vote OF % 70 81
"a motion OF Rep. Mann, OF Illinois.
that the repeal date be next Jan. 1.
These changes carried with them
the proposed increase OF five per
cent in corporation income taxes.
No change in this figure was made
by the conference, but the commit
tee members decided 10 cut IL IN
haY as Il was contended that a FIVE
percent increase would be neces-
sary II the excess profits and higher
surtaxes were imposed for this tax
able year.
The tax measure as presented IN
the house * entitled a bin 70 ~
duce and equalize taxation. 20
amend and simplify the revenue act
OF 1913 and for other purposes"
Much OF its 5000 odd words or
text Is devoted 20 amendments OF
the administrative and defnitive
actions Of the present law which
were drafted by committee experts
with a view 10 Clarifying specific
portions OF the 1918 act anG meet
ing situations arising from decisions
OF the supreme court.
other Alterations.
Aside from the revisiors o. The
levy sections already referred 20.
/ the bill proposes repeal OF all of
the transportation taxes. effective
/ next Jan. I, increased exemptions
20 heads OF families and married
men having incomes or less than
$4,000. decreases IN the levy on
| candy. sporting goods. furs and art
land art works; the substitution Of
manufacturers taxes FOR the 60
called nuisance and luxury levies
and other changes. details Of which
have been given in previous Asso-
ciated Press dispatches.
/ Additional revlsions include ex-
lemption n taxes OF the salaries OF
the president Of the United States
land judges OF the supreme and in
ferlor and federal courts and also
amounts received by individuals az
/ compensation. family allotments
/ and allowances under provisions OF
war risk insurance and vocational
rehabilitation acts
/ A change also is made in life in
surance taxation. the bill requiring
them 20 pay the normal corporation
tax in lieu OF the levies on policies
when written and all other present
taxes except the corporation stock
tax and certain stamp taxes. For
leign life insurance companies would
pay on the net income from sources
within The United States.