Paragould soliphone., 1921-08-12
MANY CHANGES
 ! IN TAXES ARE CONTEMPLAT
House Committee Plans Re- peal of the Excess Profits Tax-$40O.OO For De- pendents.

'l Washington, Aug. I1.---Even more extensive changes in tax leyies than were agreed upon at the White
 House conference between President Harding and Republican leaders of T the House. were voted tentatively yesterday by the majority members
 of the Ways and Means Committee l As summarized in q formal state
 ment the committee action included:
 Repeal of the excess profit tax effective January 1. 1891.
 An increase of the income tax on I corporations from 10 per cent to 5 per cent, with the $2.000 exemption
 retained, effective January l, 1921. l Repeal of all taxes On the trans lportation of freight and passengers
 and on seats and berths, effective
 January 1, 1922.
 T An increase in the exemptions to heads of families on account of
 dependents to $409 for each depend
 ent, instead of $200, a5 at present,
 effective January 1, 1921.
 Repeal of the so-called luxury
 taxes on clothing apparel, effective
 January 1, 1922
 Exemption from income tax of 1.-the first $500 of income from stock
 held in building and loan associa- ltions.
 Revisions of existing taxes in-
 cluded:
 Repeal of the tax on fountain drinks and ice cream, and the sub Istitution of flat tax of 10 ceats . gallon on all fountain syrups, to he paid direct by the manufactures
 or maker
 Repeal of the stamp taxes on per fumes, extracts, tooth paste. and |other toilet preparations and pro- Iprietary medicines. and the suhstitu- Ition of mannfacturers' tax Of lper cent on the sale price.
 Removal of the 15 per cent manu- ! .lfacturers' tax on cereal bevecages and the levying of manufacturers Itax of 15 cents per gallon.
 Substitution of manufacturers' ltax of two cents gallon for the present 10 per cent on the sale price lof unfermented juice beverages and lcarbonated waters or beverages, or lother soft drinks sold in cOutainera. I The levying of manufacturerg ltax of three cents gallon on cerfein classes of grape juice and two cents la gallon on other classes. in iteu lof the present tax of 10 per cent on the sale price.
 It was also agreed to levy five cents a pound on carb0ntc acid gas lsold to manufacturers of carbonateA
 gases.
 : Members of the committee estimat- ed roughly that these changes would resuit in net reduction Of $566,- 00O, ,000 in. the total yearly tax } bill. This is S45, ,OOO. 900 below the Iestimate reached at the White House conference, hut it was said that lthe estimated revenue from corpora } tions would he $45,0O0,OOO greater than heretofore reckoned by reason of the repeal 6 the excess profits exemption of $3.OO0 plus an amount jeQual to the eight per cent of the : invested capital for the taxable |year.
 Tentative changes agreed upon yesterday constitute the great bulk a of those proposed to he made, and House leaders were more confident than ever last night that the bill . -Iwould be completed in time for
 presentation to caucus of House q Republicans next Monday. : Several new proposals were put q through yesterday and other chaaGes 3 made were quite different from
 those agreed upon at the Waite o House conference, particularly the c elrepeal of all the transportation taW
 next year, instead of half of then. y The question of Tightening the bur- l. lden of men having small incOmes n Twas brought up by Representative s Bacharch of New Jersey, who pre- e posed that both single and married s men whose net income was below $4,000 be granted an additional of $500 year, or else 1.-the rate of their income be lowered > from four to three per cent. > This proposal was voted down, W but tentative agreement was reach 5. led to increase the exemption of II heads of families to s2.50O This olaction was reconsidered later, how t-Iever, and the exemption for de- e elpendents was doubled