The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-10-12
Rewriting Tax
Revision Bill
Majority Members Will Take
Up Question of Additional
Revision in Pending
Measure

EentS to the peOolnS tax REVISION
bin agreed to by Republican lead
sers in the senate We're made public
today formally II advance Of their
consideration tomorrow by majori-
~ members OF the finance COM
mittee. They would provide for:
"a maximum surtax rate OF so per
cent, on that part of incomes in
excess of 100000 in lieu of the
committee plan for 50 per cent
maximum on the excess over $685.
o8o.
Repeal Of the express, freight,
{ passenger and Pullman transporta-
sfion taxes effective at the passage
of the bill.
An increase from s2.20 a gal
Ion to 50 a gallon in the tax on
distilled spirits produced, imported
.sor withdrawn from bond for use
Tor industrial, medicinal or other
purposes.
IS Restoration of the capital stock
tax OF 81 on each $1,000 Of invested
capital.
Estate Tax Rules.
A graduated increase in the es-
tate tax rates to a maximum Of so
per cent on the excess over $780,
0ga, 600 in lieu Of the present maxi
mum Of 25 per cent. over 10000
aa0.
Repeal OF the excise on sport
Goods. chewing gum, perfumes, eS-
sences, tooth and mouth washes
and pastes, dentifrices, toilet pow
ders and soaps. and soap powders
and other miscellaneous taxes suf-
ffcient to make up cut Of S37,-
600, ,093 annually.
Elimination of the proposed tax
sOn hotel accommodations.
Reduction in the tax on candy
tosS per cent. tax with elimination
of the committee proposal for 10
per cent. on candy selling at whole
sale FOR more than 4eN cents a:
pound
The other excise provisions. Of
< the senate bill would stand includ-
ing repeal of the excess profits tax
next January l, flat tax Of 10 per
cent, on corporation incomes and
increased exemptions for heads Of
families and on account of depend
ents.
While repal Of the $4,000 exemp-
! ton allowed corporations is not in
Guided in the program as announc-
ed, leaders were endeavoring
to work out a plan which would
protect small corporations and at
the same TIME remove the exemp-
ton from large corporations. The
suggestion meeting with the most
favor was to allow the exemption
IN the case Of corporations having
net incomes OF less than $4,000 or
$25. 900.
Opposition to the proposed in
crease in the surtaX rates develop
ed today among a group Of sena-
s tors from Eastern states and they
were understood to be preparing
to wage an active fight against a so
per cent maximum There was
also some opposition among these
senators to increased estate tax
rates.
House leaders also declared
against increasing the surtax rate
beyond the 80 per cent. maximum
fixed in the bill as it passed the
house. Representative Mondell Of
Wyoming, the Republican leader,
and Chairman Fordney Of the ways
OF mears committee expressed
themselves very frankly on this
subject before goirg into a con-
ference with Chairman Penrose Of
the senate finance committee to
discuss the changes as agreed upon
by the senate leaders.
In making public the proposed
senate amendments, Senator Pen
rose said they were offered by GER
tain senators ''in patriotic and
amicable spirit" and that he did
not understand that they We're ar
bitrary or final Declaring that he
did not regard them as constituting
radical innovations, disturbing the
structure of the committee meas
ure, the finance committee chair
man said many Of them were in no
way Objectionable to him. Il have
no objection" he said, ito repeal
of the nuisance taxes, transporta-
tiou taxes and hotel tax. have
not had time to study all Of the
other proposals"
81 The net change in tn estimated
revenue as a result of the amend
ments as proposed was placed by
treasury experts at an increase Of
5 S11. .o00, 900 in the s3,324, 900, 900
total Of the pending bill.
The surtax amendment provides
q wholly-new schedule beginning
with I per cent in that part of in
comes between $4,000 and $4,000
and increasing per cent. for each
additional $4,000 up to AT per cent.
on incomes between S9S,000 and
500, 900. Then the rates would be
43 per cent. Between 100000 and
$4,000 and 49 per cent between
$150O00 and S200,000 The COM
mittee proposal is l per cent on
$4,000 to $4,000 and gradual in
creasss up to 80 per cent on s66,-
900.
Under the amendment to the es-
tate tax the present 25 per cent
maximum would apply on the
amount of estates between SIC, 900
600 and SIS 100000 and then the
rates would be 80 per cent between
S15.0a0.0OO and $4,000. 900. Thir-