The Washington times., 1921-08-21
WAR LEVY
BURDENS
SLASHED
Hectic Debate Marks Adoption,
274 to 125, of Fordney
Tariff.
BY A. o. HAYWARD.
International News Service.

The war burden, under which the
American people have been stag
gering for the past four years, had
promise of relief last night when
the House passed the Fordney tax
revision bill.
The bill, as passed by the House,
will reduce the strain on every
American pocketbook, from the
child who has paid luxury tax on
an ice cream cone to the big man.
ufacturer who has been forced to
pay q heavy excess profits tax.
The net annual tax reduction pro-
vided in the bill is estimated at
$818,330,000, approximately SO per
capita.
Vote 274 to 125.
The measure passed the House by
n vote Of 274 to 125.
Nine Republicans voted against the
BILL They were Beck, Lampert, John
M. Nelson and Weight, Of Wisconsin,;
Clague and Keller, OF Minnesota;
Michaelson. of Illinois; Sinclair. OF
North Dakota, and Woodruff, of
Michigan.
Three Democrats voted for the bill.
They were Dupre and Lazaro, of
Louisiana, and Campbell, Of Penn
sylvania.
A motion by Congressman Garner
OemocraD of Texas to recommit the
bill with instructions that 1t be re-
ported again with high surtaxes fixed
at the present rate was defeated by
vote of 230 to 169, with forty-nine
Republicans voting with the Demo
Gratis for recommital.
Fight Marks Passage.
More than ninety amendments were
adopted to the bill in the House, these
amendments reducing taxes by $685.
900, 900.
Passage of the bill was preceded by
q bitter partisan fight. Republican
Leader Mondell declared that the bill
is an act making good on the Republi-
can campaign promises, and he at
2 tackled the Wilson administration for
reckless extravaganza" Mondell
was answered by Congressman Gar
ner and Connally, Democrats of Texas,
who charged that the bill would leave
the United States with deficit of
5000, 100000 this year, and charged
that the bill was merely camouflage.
The House action was not without
a few ripples of dissatisfaction, even
in the Republican ranks. After the
passage of the bill Congressman
Oscar e. Keller of Minneapolis. a Re
publican, issued a statement declar-
ing that "the so-called tax reductions
of the Fordney revenue bill are purely
illusory, and have been accomplished
only on paper for political effect by
the palpable Juggling Of figures"
How Cuts Were Made
The bill is proposed by its Republi-
can trainers to grant some relief from
taxes to business and capital for en-
couragement In business rehabilita-
ton, to shippers and consumers in
lessening transportation costs, and to
the people in removal Of the smaller
yexatious taxes made necessary by
war needs. To compensate the treas
ury for the tax losses incurred in re-
auctions and repeats the tax trainers
switched additional tax burdens on
corporation incomes and on the man.
ufacturers, making the readjust-
ments in such a way that as small
a part possible of the tax could be
passed along to the consumer.
The bill repeats the excess profits
tax and the transportation taxes, ef-
fective January /, 1922.
Corporation net income taxes are
increased from 10 to 12h per cent,
effective January 1, 1922.
All insurance companies except
paternal companies, are made, SUB
ject to a tax of 12h per cent on net
income, foreign companies being re.
auired to pay on business done within
the United States.
Incomes from capital assets gains
are taxed at 12h per cent on excess
of 5000.
Personal service corporations are
brought under the corporation net in
come tax and required to pay the
taxes accruing since 1919.
Income surtaxes are reduced to a