The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-13
.ExPRESSTAxES
TO BE REPEALED
House Committee Also Puts
Drink Levy on Makers.
All SO-CalIed Luxury Excuses
Are Due for Axe.
WHITE HOUSE IN EXPLANATION
Reducing High Income Levies
Will Produce More.
Aim Is to Repeal All SO-Ca1Ied
"Nuisance LeYies."
WHITE HOUSE IN EXPLANATION

Washington. Aug. 13.-Repeal of
the express tax of cent on every 20
cents of value was decided upon today
by the ways and means committee.
The committee also voted to levy a
flat license tax of $40 on all retailers
of soft drinks and to fix the manu-
facturers' tax on cereal beverages at
II cents a gallon in place of the pres
ent manufacturers tax of 5 per cent
on the sale price.
Are Completing Bill.
Finishing touches were put to the
tax revision bill today by Republican
members of the house ways and
means committee. The completed
draft of the legislation will be sent to
the public printer tonight. Monday
afternoon it will be in the hands of
the Republican members of the house,
convened in special conference to ap-
prove it, or to vote changes in it.
Important late changes made in eX-
listing taxes by the committee were in
creases from $4,000 to $2,500 of the
income exception for heads of fam
lilies with total income of $1,000 or
less. This increase in exemptions, to-
gether with increase from 5000 to
$40O for each dependent. is expected
to popularize the tax revision present
ed by the committee.
1t is expected that these proposed
changes will result in a loss of revenue
amounting to $50,O0O,0O0, of which
S30,000,000 is charged to increase of
exemption from the normal income
tax.
Disregard Melons Plea.
The committee decided to reduce
the tax on furs from 10 to per cent
and on candy from to per cent.
All of the so-called luxury taxes are
repealed, but the committee is seeking
a way to substitute for them per
cent tax on the manufacturers of arti-
cles embraced in the luxury schedule
of the existing law. Spch a tax would
yield about $20.0O0.0O0.
Disregarding the recommendation OF
Secretary Mellon, the committee failed
to provide for reduction January L,
1922, Of surtaXes on large incomes to
a maximum of 25 per cent. The bill
carries a maximum surtax rate of 80
per cent, which is a reduction of eX-
listing rates and effective January 1,
1921.
White House Explains.
An official statement explaining ad-
ministration tax revision program was
issued today at the White House. 1t
declares that 1.-The aim was to esta blish
methods that would raise the needed
revenue within a reasonable certainty,
make collections sure and inexpensive
and properly adjust the burden among
all classes of the community"
It is felt that highly important pro-
gress has been made along these
lines" the statement says, adding:
There has been no effort to re-
lieve the rich of their share of the
burdens but rather to insure that no
class will be left an avenue of escape
from these. A casual analysis of the
proposals shows that what may be
described as the rich mans taxes
will IRoduce about $1,800.000,000
while the balance will be distributed
over the entire community rich and
poor.
Cut to Produce More.
"The reduction to 80 per cent of the
highest income and sur-tax brackets is
expected by the experts to produce
actually more revenue from these
sources than do the present much
higher rates. The present rates pre-
vent transactions which would involve
application of the high rates, and thus
keep taxes away from the government.
Also they drive money into taX-free
securities to the distress Of business;
and they lead to fraud and evasions.
In increasing the tax on corpora
tion earnings, an exemption is made
of those having earnings of $4,000 or
less-the poor mans corporations.
The number that would thus be ex-
empted would exceed 100000.