Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1921-08-19
BY EDWARD W. PIcKARD.

Although it has been freely and
generally predicted that the Repub-
licans would be unable to carry out
this year their party pledge to lower
taxes, that the revenue bill would
show only revision and not reduction
because Of the necessarily large ex-
penses of government, it now appears
they have found way to fulfill the
promise. President Harding and the
majority leaders of the house got to-
gether last week and agreed on a
program by which government expen-
ditures will be cut $516, 100000. This
calls for the raising of $3,075,0 100000
from internal taxation, which is $780,
100000 less than the total which the
treasury estimated would be the yield
of the present law during the fiscal
year, 1922 The total to be raised
from all sources, but not including
postal receipts, will be $4,034,OOO,OOO.
According to the agreement, saving
in the various departmental appro-
priations will amount to $35,000,000,
and a plan was devised whereby the
public debt expenditures will be re-
duced $15O,OOOOO0.
1t was the earnest desire of the Re-
publican leaders that the imposition
Of new taxes be avoided, and under
the present plan the proposed $40 tax
On automobiles, the Scent postage
and 2-cent stamp on bank checks will
be unnecessary.
OF more immediate interest, per-
haps, to the average citizen was the
action of the ways and means COM
4nittee Of the house, which is framing
the revenue bill, concerning the per-
sonal income tax. 1t was voted that
the allowance for each dependent
shall be $500 instead Of $500 as at
present, which means greatly in
creased exemption for the nan with
a large family. A proposition to In
crease the present exemption Of ST.
600 for single persons and $4,000 for
heads Of families to $1,000 and $500
respectively was voted down. This
would have meant a loss of revenue
of nearly fifty million dollars. An
other change adopted was the reduc-
ton of the tax on very large incomes.
There will be no tax above the 80 per
cent now levied on incomes of $780,
000-which will be a relief to about
ten thousand of our wealthiest citi-
zens, but will not call for cheers
from the rest of us.
The committee also decided or a
complete repeal of taxes on freight,
passenger and Pullman transporta-
ton, and increased the fiat corpor-
alton tax from 10 per cent to Is per
cent. In this and other respects the
committee disagreed with the results
of the conference with the President,
and the changes it has made to date
lower the yield from internal taxes
to 5000, 100000. OF course all these
things are dependent on further ac-
ton by the committee and acceptance
by the house and senate.
The losses in revenue below the
present law which will result from
the program as it now stands include
S450000,000 from repeal of the excess
profits tax, $90,000,000 from the re-
duction in the higher surtaxes, $145,-
100000 from repeal Of the tax Of 8
per cent on freight, $100,000,000 from
repeal of the tax of per cent on
passenger transportation, $8,000,000
from the repeal Of the 8 per cent tax
on Pullman charges, $25,O0O,0OO from
the repeal of the soda fountain tax,
S15,000,000 from the repeal Of the
tax on proprietary medicines, besides
& few smaller items which bring the
total up to 1891, 100000
Increases made offsetting these loss