New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-17
$500, 100000 Net Loss
in Revenue to Mean So
Gain for Each Person.
Fordney Says in Report
Democratic Attack
To Begin To- day
Minority Will Contest
Methods of Obtaining
Cut of $1,361,7 100000

w - . II I'm VI L YIN, Aug. To- ne ma
tion's tax bill will be cut $193, $4,000
this fiscal year, s377,79o,o 900 in the cal
cndar year 1922 and S790,330,Oo0 in
1923, Chairman Fordney of the Ways
and Means Committee asserted to-day
in the majority report explaining the
tax revision bill framed by Republican
committeeman. This would mean an
annual saving, he said, of 81 per capita,
or, to the average family, of S35.
Without disputng the figures Demo
Gratis of the House prepared in caucus
for broadside assault on the Repub-
Lean measure, planning to brand i. as
rich mans bill Their views were to
be incorporated in a minority analysis,
attacking the means by which reduc-
tions were achieved.
Meantime the Rules Committee re-
ported rule to put the bill through
the House at p. m. Saturday. Debate
will begin at II a. m. tomorrow, the
measure having been formally reported
to-day by the Ways and Means Com
mittee. with the Democrats voting SOL
idly against it.
Fordney Outlines Cuts
Chairman Fordney insisted in the
majority report that the policy of the
bill was Producing rather than shifting
tax burdens" He estimated reductions
in levies some Of which will not be-
come fully effective until 1928, as fol-
lows:
Repeal of excess profits, January I,
1922, $3.50, 100000.
Reduction of surtax rates on indi-
vidual incomes to 32 per cent. January
/, 1929, $90000,000.
Increased exemptions Of heads Of
families to $500 for incomes not in
excess Of S5 900, $4O,OOO,OOO
Additional exemptions for depen-
dents, increased to S40O from $500,
$4,000, 900.
Repeal of all transportation taxes,
January 1, 1922, 1892, 100000
Repeal of tax on life insurance, S.
100000. 4! !;ilaa1
Repeal of taxes on beverages, $780,
100000.
Reduction of taxes on candy, SS,O00,-
600.
Sporting goods, S2000,000.
Furs, S4,510,000.
So-called luxury taxes, $1500O,0 ,000
Estimated gains in taxes, beginning
with the calendar year 1923, are given
as follows:
Increased Taxes
Increase of corporation income tax
from 10 to 1212 per cent, January /,
1922, $133, 900.
License to sellers of soft drinks,
Sl0,000,000.
Tax of six cents on cereal beverages,
$12 100000
Tax of five cents on ,carbonic acid
gas. $1,000, 900.
Taxes on fruit juices, still drinks
and fountain syrups, 12,000,OOO
Substitution Of ms nufacturers' taxes
on toilet preparations and proprietary
medicines for existing stamp taxes,
$4,000 ,OOO
The total loss in revenue is thus
placed at $96S. .OS0, 900, and the total
gains at S177,75O, 900, leaving the net
loss Of S790, $3.50 900 estimated by the
report.
Applying to individual taxpayers the
net difference Of s79o,330 900 between
these losses and gains, Mr.. Fordney
said they represented a reduction of 81
per capita, cor q saving to the average
family of s35 per year"
Since the repeal of the excess profits
tax and the reductio~ OF surtax rates
on individual incomes do not become
effective uptil 1922, Mr. Fordney said
$406, $50, ,00G of the contemplated loss Of
revenue would not be reflected in the
revenue collections prior to the cal
cndar year 1923. Discussing elimina-
tion Of these levies, Mr. Fordney quoted
two former Democratic Secretaries of
the Treasury-Glas and Houston--as
urging their repeal, Mr.. Glass in 1919
and Mr.. Houston in 1920.
Tax Evasion Emphasized
Emphasis was laid by the chairman
on sections of the new bill designed to
prevent tax evasion. He informed the
House that under existing law the tax
payer might improperly reduce his sur
taxes by changing his fiscal year, thus
splitting his annual income in two