The Richmond palladium and sun-telegram., 1921-11-08
TAX Bill May
REACH HARDING
LATE IN MONTH
Measure, Passed by Senate
Early Today by Vote of 38
to "a, Faces Third Rewrit-
ing-Will Reduce Toll.
CHANGES TO Be MINOR


WASHINGTON, Nov S.-The tax
revision bill now faces its third rewrit-
ing, this time by the mouse and senate
conferees.
The measure finally was passed
early today by the senate, SO to "a, at
the end of continuous session last
ing nearly IS hours. 1t will be re-
turned to the house when that body
reconvenes tomorrow and Republican
leaders there plan to send it to con-
ference Thursday 1t may reach the
president for his approval late in the
month.
At a rough estimate treasury ex-
perts say the bill in its present form
would net approximately S3,25O, 900 ,000
or $200,000,000 less than the present
law and about the amount of revenue
which treasury officials have said the
government must have. Eventually
the bill, the experts assert would re-
duce the nations tax toll by about
S750.000,000 a year.
While they undoubtedly will make
many changes in the measure, the
conferees are not expected to mate
rally alter the total of revenue. AS
the bill now stands there are just
three major provisions on which the
house and senate agree. They are re-
peal of the excess profits tax and the
transportation taxes on next Jan. l,
and the retention of the present tax on
corporation capital stock.
Outstanding Provisions
Other outstanding provisions of the
bill are: A reduction in the maximum
surtax from 65 per cent on all over
S1,000,000 to 60 per cent on all over
100000, as against the house reduc-
tion to 80 per cent on all over $4,000.
Retention of the house provision
granting increased normal exemptions
of $500 TO heads of families having
net incomes of $4,000 or less, and 5000
on account of dependents.
Repeal of the $4,000 normal exemp-
ton to corporations except in the case
of those having net incomes of $25,-
900 or less.
An increase in the estate tax maxi
mum rate from % per cent on all
over S10,000000 to so per cent on all
over 100000, 900. Increased taxes on
medicinal beer, wine and whisky.
A provision taxing gifts of property
by any person at rates ranging from
one per cent on the amount between
$4,000 and $4,000 to 25 per cent on
all over $10,O00,0O0
Many Taxes Repealed
Repeal of the excise taxes on chew
ing gum, sporting articles, musical in
struments, electric fans and many
other articles, as we'll as the stamp
tax on proprietary medicines and toll
ct preparations. The levies on foun-
tain drinks and ice cream also are
out.
The big fight between the senate
and house is expected to develop over
the income surtax rate with the gen
eral belief at both ends of the capi-
tol that the cOnferees will reach a
compromise at a figure around 40
Ter cent. House Republican leaders
believe they can scotch the movement
among some Republicans from western
states to have the house instruct its
managers to accept the senate maxi
mum rate.
In the final drive in the senate last
night to pass the bill many amend
ments were offered but few of them
were accepted. The most important
of those approved was that taxing
gifts of property which is designed to
prevent evasion of the surtax by
wealthy individuals by a distribution
of their property among their rela-
lives.
Under another amendment gains
realized by taxpayers from the sale of
corporation stock would be taxed on
the full amount instead of on only
40 per cent as it was claimed would
be the case had the capital asset de-
finiuon in the bill remained I'M
changed.