Arizona republican., 1921-08-17
Quick Action Planned

Meantime the rules committee in- troduced a rule to put the bill through the house at p. m Satur- day Debate will begin at Il a. m tomorrow. the measure having been formally reported today by the waye and means committee. with the Dem ocrats voting solidly against it.
 Chairman Fordney insisted in the majority report that the policy of the bill was reducing rather than shifting tax burdens. He estimated reductions in levies. some of which will not become fully effective until 1923. as follows:
 The Proposed Reductions Repeal of excess profits. Jan. l. 1922. $450. .000. .000. Reductions of surtax rates on in- dividual incomes to 32 per cent. Jan. | 1. 1922, $e0.00o. .0o0 Increased exemptions of heads of | families to $2500 for incomes not in excess Of 5000. sz0.000, 900. Additional exceptions for depend ents increased to s4oo from s2eo ] $3o. 900. 900.
 Repeal of all transportation taxes Jan. 1. 1922. $2s2, ,oe0. 00o-
 Repeal of tax on life insurance. | $6. .0e0.
 Repeal of taxes on beverages. ssc.- oo0.8oo
 Reduction of taxes on candy, s. 0o0 900.
 Sporting goods. s2.0oo.Ooo
 F'urs. s2.451.o00; so-called luxury I taxes. SIS, ,oo0, 900.
 Estimated gains in taxes beginning with the calendar year 1923 are given as follows:
 Increase of corporation income tax from 10 to 12z per cent. Jan. 1. 1922. $133 75o. .00O
 License to sellers of soft drinks.
 Tax of cents on cereal beverages. | SIP. 000, 900.
 Tax of cents on carbonic acid gas. s2.0e0. .00o
 Taxes on fruit juices. still drinks and fountain sirups. s12.ooo.oo
 Substitution of manufacturers tax es on toilet preparations and proprie- tary medicines for existing stamp taxes. s2,o0o,ooo.
 The total loss in revenue is thus II placed at 6s.000.0oo and the total gains at s177. 900, leaving the net loss of s790, ,3S0.0o0 estimated by the report.
 Applying to individual taxpayers the net difference of $7s0,330, 900 be- twen the losses and gains. MT. Ford
 
 of $7 per capita, "or a saving to the average family of ss5 per year..
 Since the repeal of the excess prof its tax and the reduction of surtax rates on individual incomes do not become effective until 1922. Mr. Ford ney said. s406. .250.000 of the contem- plated loss of revenue would not be reflected in revenue collections prior to the calendar year 1923. Discuss ing elimination of these levies. Mir. Fordney quoted two former Demo- cratic secretaries of the treasury Glass and Houston-as urging their repeal MT. Glass in 1919 and Mir. . Houston in 1920. Emphasis was laid by the chair man on sections of the new bill de- signed to prevent tax evasion. He in formed the house that under existing law the taxpayer might improperly reduce his surtaxes by reducing his fascal. thus splitting his annual in come into two parts. sa
 Leaves No Loopholes
 To prevent such an evasion. he added. the bill provided that in the case of a return for a period of less than one year the net income shall be placed on an annual basis and the surtax properly computed thereon in , accordance with the number of months in such period. To prevent evasion of tax through ? the medium of wash sales, Mr. 1 F'ordney said a section Lad been put 7 in the bill to limit deductions for } losses sustained in the sale of. securi- s ties where the taxpayer at or about 2 the time of such sale purchased iden- l tical securities. : The provision of the law dealing . with surtax evasion by corporate or l ganizations, the report said. was re- vised to meet the decision of the su- l preme >ourt in the stock dividend e case. They would impose on corpora t tions of this chara ter an additional income tax of 25 per cent of the ne' n income, but if the stockholders |. agreed. they might be taxed upon n l 4l,oir diStrih1,fire shares in the mel