Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-16
NatiOn's Tax Bill
Cut S790,33O,0
Continued from Page Cns

to be determined late today at a party
caucus. Decision to have the Demo-
cratS on the Ways and Means Commit
tee file minority report on the measure
was forecast.
Meantime the committee, with the
Democratic members present, is to pass
formally on the bill as amended as q
result of the action of the Republican
conference, which voted 90 TO 81, to
postpone repeal of the excess profits
tax and higher income surtaX rates
until next January l and to put of
until the same date the proposed in
crease in the corporation income tax.
Proposed Corporation Tax Cut
After the conference action and be-
fore Chairman Fordney presented the
bill in the House. majority members OF
tie Ways and Means Committee de-
cided to reduce the amount Of the cor
poration income tax increase from 5
per cent to 212 per cent, the figure
originally agreed upon at the White
Houes tax conference week ago, and
TO cut in half the proposer manufac-
turers tax on twelve cents Il gallon on
cereal beverages.
The changes made in the original
committee draft were estimated by some
600 900. the $1,000 900, 5000 yield
which it had been figured would be re-
turned under the bill as drafted by the
majority committeeman.
The program agreed upon by the
Republican conference yo"terday for
House consideration OF t~e bill. called
for the adoption of special rule lin
iting debate to four rays from II A. NJ.
Wednesday and fixing T. NJ. Satur-
day as the time for the final vote.
Changes Made BY B!H
The new bill repeals the excess
porhts tax; the higher brackets of in
come surtaXes. all Of the transporta
tion taxes, including express and oil
pipe line. increased exemptions 10 head
of families and married men having
small incomes. and decreases in the
levies on candy, sporting goods, furs
and art works.
Details OF these and other changes.
Including the increase of ) per cent
in the income tax on corporations, al
ready have been published. Other re-
visions include, however, the exemption
from taxation of the compensation re-
ceived by the President of the United
States and the Judges Of the Supreme
and inferior courts of the United
States and amounts received as COM
pensatiOn, family allotments and al
lowauces under provisions Of the war
risk insurance and vocational rehabiG-
tatiOn acts.
The bill contains upward of 10000
words and is entitled "A Bill TO Re
duce and Equalize Taxation, to Amend
and Simplify the Revenue Act OF 1918.
and for Other Purposes Much Of the
ko- l.. H., . Al
administrative and detinitive sections Of
the present law which We're prepared by
Treasury experts with a view to Clari-
flying specific portions of the 1918 act
and meeting situations arising from de-
cisions of the Supreme Court.
Other Notifications
Among the other changes in the
administration Cf the tax laws and the
notifications Of existing lcvies written
into the bill before it was introduced
IN the House were the following:
The jewellers tax Of per cent on
eyeglasses and spectaCles, and the man =
ufacturers' tax Of 8 per cent on port
able electric fans would be repealed.
A tax of 10 per cent would be i'm .
posed on lenses for cameras weighing
not more than 100 pounds.
incorporation Of virtual tax on
undiStributed earnings of corporations
at the rate of % per cent, over and
above other corporation taxes provided
corporations impouud their earnings
with a view to enabling stockholders ia
escape the surfaces on dividends
Exemption from taxation would be
granted to farmers operative pur-
chasing organizations as we'll as to sell
ing organizations where the materials
purchased are turned over TO member,
of the organizations lat actual cost
plus necessary expenses
Luxury taxes on clothing arc re-
pealed. effective January !, 1922, n,
are stamp taxes on proprietary medi,
cines, perfumes, extracts and toilet
preparations, n manufacturers tax Of
per cent on sale prices being substituted,
Taxes on fountain drinks and ice
cream are repealed and fiat tax ot
ten cents a gallon on fountain sirups,
TO be paid by the manufacturer. is sub
stituted.
The is per cent manufacturers tax on
csreal beverages is repealed, a manu-
facturers' tax of six cents a gallon
bang substituted.
Ths 10 per cent manufacturers tax
~