Evening journal., 1921-08-16
Defer SURTAX
PROFITS CUT
Means Additional $350,OOO,-
900 Revenue TO That Es-
timated by Fordney
HOUSE VOTE ON
NEXT SATURDAY


WASHINGTON. Aug 1e.--The ad-
ministration tax revision bill has
been laid before the House OF Rep
resentatives after the Republican /
membership of that body in confer
ence had changed it so as to make !
repeal OF the excess profits tax and
the income surtax rates in excess of
32 per cent effective next January
/. instead of last January 1.
This change. on the basis OF pre-
vious treasury estimates. would re-
suit in the corporations and indi-
viduals with large incomes paying TO
the government in the next calendar
year something like $500. 900. 900
more than they would have paid had
the administration plan of making
the repeals retractive prevailed.
Total tax reductions for this fiscal
year under the bill as revised were
estimated by some majority MEM
bers Of the ways and means commit
tee at $3.50. 100000 as against ap-
proximately $3.50. 100000 planned by
committee Republicans. and the total
tax yield at about s3.200.00o.
AS a result Of the changes made
by the Republican conference. ma
jority committee members further
amended the bill before its presenta-
ton in the House so as to make the
corporation income tax IL y per cent
after next January l. instead Of 10
per cent as originally planned, and
the manufacturers tax on cereal
beverages 6 cents a gallon instead Of
u cents.
Under the plans adopted by the
party conference. the bill will be
taken up in the House at IL a. m.
Wednesday under a special rule
calling for a final vote at 3 p. m.
Saturday. Two DAYS will be given
over to general debate and two days
to consideration Of amendments un-
der the five-minute rule.
Democratic members Of the House
plan to hold a caucus tomorrow ar
ternoon to decide on a course OF ac-
ton while the measure is under con-
sideration. They also are expected
to determine whether Democrats on
the ways and means committee shall
file a minority report
Meantime the fun committee will
meet to pass finally on the bill. but
this Is expected to be a mere for
mality.
The Republican conference lasted
several hours, with western members
leading the fight to reject the plan
for retroactive repeal Of the excess
profits and higher income surtax
rates, which was agreed on at the
White House tax conference last
Tuesday. Representative Frear. OF
Wisconsin. a member OF the ways
and means committee. was under
stood 70 have Insisted that the House
pass on the effective date Of the re-
peals, but the conference finally
adopted 96 TO 81. a motion by Rep
resentative Mann. Of Illinois, that
the repeal date be next January 1.
The tax measure as presented In
the House is entitled "a bill to re-
duce and authorize taxation to amend
and simplify the revenue act OF 1918
and for other purposes" Much OF
It's 5000 odd words OF text is de-
voted TO amendment of the admin
istrative and dehnitive sections OF
the present law which were drafted
by treasury experts with a view to
clarifying specific portions OF the
1918 act and meeting situations aris-
ing from decisions OF the Supreme
Court.
Aside from the revisions OF the
levy sections already referred to. the
bill proposes repeal Of all the trans
portation taxes. effective next Janu-
airy 1, Increased exemptions TO heads
OF families and married men having
incomes OF less than $1,000, decreases
in the levies on candy. sporting
goods. furs and art works; the sub.
stitution of manufacturers taxes foi
the so-called nuisance and iuxur,
levies and other changes. details o
which have been given In previou
Associated Press dispatches.
Additional revisions include ex
emption from taxation OF the sal
aries Of the President OF the Unite
States and the judges OF the Suprem
and inferior federal courts and ais
amounts received by individuals a
compensation, family allotments an
allowances under provisions OF tn
war risk insurance and vocations
rehabilitation acts.
A change also Is made in life In
surance company taxation. the bi
requiring them to pay the norma
corporation tax in lieu Of the levle
on policies when written and a
other present taxes except the cor
poration stock tax and certai
stamp taxes. Foreign life insuranc
companies would pay on the net in
come from sources within IN
United States
Another important section OF tn
new bin outlines a general plan {
tax American concerns doing prac
tically all their business in foreig
countries only on the income re
ceived from American sources. The
now are taxed on their entire in
come. which is contended to plac
them at a disadvantage with com
peting foreign houses.
Personal service corporations, free,
by the Supreme Court from corpo