New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-11
House Committee Votes to
Repeal Transportation
Tolls; Family Heads to-
Get Double Exemption
555 Million Will
Be Saved Yearly
IS Million Revenue Is
Expected From Change
i'm Investment Tariff


and Republican leaders of the House
of Representatives were voted tenta
lively to-day by the majority members
of the Ways and Means Committee.
The reductions, amounting to 1856,
100000, we're made possible by de.
cision to repeal the excess profits tax
remove the fax ON transportation, arc
double the exemption allowed under
the normal income tax for dependen,
persons.
These cuts, worked out in an all-day
session, took the committee long way
toward fulfilling its promise to report
the tax bill to the House next Monday
Additional smaller reductions may yet
be agreed on. and passage of the meas
ure by the House is now expected be
fore August 20. If it goes through by
that time. and the farm export bill also
is passed by the House by that date
Congress- will take thirty-day recess
Recess Plans Discussed
Senators Lodge and Curtis discussed
recess plans with President Harding
TODAY at the White House. The!
found the President inslstent that th'
House mass the tax and export bill:
before recess, in addition to the gralr
futures conference report, the emer
oencv tariff resolution and the anti
beer bill conference report. The raj
hill IL is understood, viii go over untl
alter the recess.
The reductions agreed to by the com
ui.tee. as summarized in lorna
statement. included:
Repeal of the excess profits tax,
effective January i, 1921.
An increase OF the income tax on
corporations from 10 per cent to 10
per cent with the $1,000 exemption
retained, effective January I, 1921.
Repeal OF all taxes on the trans
portation of freight and passengers
and on seats and berths, effective
January l, 1922.
An increase in the exemptions to
heads of families on account OF de-
pendents to $500 for each dependent,
instead of $500 as at present, effec-
tive January /, 1921.
Repeal of the so-called luxury
taxes on clothing apparel, effective
January ], w..
Exemption from income tax OF the
first 5000 of income from stock held
in building and loan associations.
Revisions of existing taxes included
Repeal of the tax on fountain
drinks and ice cream and the sub
stituJion of fiat tax of 10 cents a
gallon on all fountain syrups, to be
paid direct by the manufacturer or
maker.
Repeal of Stamp Taxes
Repeal of the stamp taxes on per-
fumes. extracts, tooth paste and
other toilet preparations and propri-
ctary medicines and the substitution
of manufacturers tax of per
cert on the sale price.
Removal of the % per cent manu-
facturers' tax on cereal beverage and
the levying of a manufacturers tax
OF is cents per gallon.
Substitution of a manufacturers
tax Of cents d gallon for the present
10 per cent on the sale price of un-
fermented juice beverages and car
donated waters or beverages or other
soft drinks sold in containers.
The leyyng of manufacturers'
tax of 3 cents gallon on certain
classes OF grapejuice and cents a
the present tax Of 10 per cent on
the sale price.
It also was agreed to levy Ave cent
pound on carbonic acid gas, sold t
manufacturers of carbonated waters.
Members of the committee estimate
roughly that these changes would re
suit in net reduction of $555, 900, 90
IN the total yearly tax bill. This i
e}o00O,000 below the estimate reache
at the White House conference, but
as explained that the estimated rev
@nle from corporations would be $45,
10000 greater than heretofore rcck
'Hcd b. reason Of the repeal of tn
'.eess profits exemption of $1,000 plu
an amount equal to the s per cent O
invested capital for the taxable ycal
New Changes Made
several new proposals were pu
through today and other changes mad
were quite different from those agree
lpon al the White House conference
ratueuiarly the repeal of all of tn
transportation taxes next year instea
~ haif Of them. The question 0
..gh,sn'ng the burden of men havin
s'na!i incomes was brought up by Rep
tentative Bacharach, Of New jersey
mo proposed that both single an
I~@t'ed men whose net income wa
TStVVV De granted an adnltlOud
1>'np'ion Of $500 year. or else tn
s.s % their incomes be lowered fror
. per cent.
inis proposal ~as votod down, bu
NATIVE agreement was reached t
..e'eaae t3c exemption OF heads O
,@Di'ltes 10 $500. This action was re
@s"z'f~rcd later, however, and the ea
s"p'i'n Tor dependents waa doublcs
H.oeFs opposing the other change
nttfe undcrstood to have argued tina
~ you'd relieve those more in nee
!" re!ief than would the other pro
representative Garner, Tczas, tn
ssNHng Democrat on the Ways an
g"9ns Committee, issued statcrnen n
|tlhH ire my attacking the tax re-
I'm g,1gozals NJ agreed upon Ut III
Ky. l;sie hrpse meeting last night.
most VI tho tazes the Republican
xf'pose - repeal arc the rich man
e~ss,' ne aaid. II fayor/ repeal Of a.
sse mizeellaneous war taxes, bu
pfo1ably would continue the czces
pr"nts Tar for this calendar year m
p,ssioiy for next year, 10 take care o
.os wAr aftermath emergencies whic
~Is not permanent charge against tn
zcysrnment1