The Connecticut labor news., 1921-08-19
Even t he SO- Called 'Near Beer" Is to Be Levied 15 Per Cent, While LuXuries of the Rich Are Reduced.

Washington, Aug. Io.-Rcvision of the 1918 tax law has been finished by , republican members of the House Ways and Means Committee, with the adoption of these additional changes:
 Repeal of the express and oil pipe line transportation taxes ,c1tccllVc January I, 1922.
 Imposition of license tax oi $Io on vendors of soft drinks, c4cctlN ( on enactment of the bill.
 Substitution of a manufacturers tax of I2 cents a gallon on cereal bever- ages (near becr) for the present levy Ot I5 per cent, effective OH enactment.
 Imposition of a five per cent. tax on the full manufacturers selling price of the following articles, II sold by the manufacturers at levels i'll cN- cess of these specified effective on enaCtment:
 Carpets and rugs, $3.5o a square yard; trunks, $50 each; valises, travel ing bags suit cases, hat boxes used by travellers and fitted toilet cases, SIS each; purses, pockctbooks, shopping and hand bags, $4 each; portable all kinds and shades, $Io each; fans, H., or jackets and bath or lounging robes, $3 each.
 Expect Big Results.
 Members of the committee said they believed the bill as agreed on would produce the $3,ooo, ,ooo 900 Sec retary Mellon estimated 1t will be necessary to raise from internal rev enue next year. The total includes $500, 900 ooo to be collected on back taxes.
 The bill will be presented to the House and passed by tomorrow after two days debate and two days con- sideratiOn of amendments under the five minute rule. From the House ii will go to the Senate Finance Com mittee to be- reported when Congress recOnVenes, probably late i'll Septem- Der.
 and oil pipe line taxes, the commit tee eliminated all the transportation taxes. No change was made, how ever, in the levies on telegraph, telc- rhone, cable and radio messages
 Replaces Luxury Taxes.
 The manufacturers tax of per cent. on carpets, trunks and other ar ticles is designed to replace the SO called luxury levies now in force, in Cluding those on wearing apparel. But the plan now IS to continue these taxes, collected and paid to the Gov ernment by the retailers, until neXi January I, despite the facc that the manufacturers tax would becomo cf- feCtive upon enactment of the bill.
 The license tax on vendors Ot soft drinks is new levy, exclusive Ot the manufacturers tax on syrups used at fountains and of unfermented bever- ages, Carbonated waters or other soft drinks sold in containers.
 Besides the changes agreed on the bill will contain:
 Repeal of the excess pohts tax and an increase in the income tax on cor porations from 10 to 15 per cent, with the $2,oOO exemption retained, effective January I, 1921.
 Repeal of the income surtax brack- cts above 324 per cent, effective Janu- ary I, Io2I.<
 Transportation Field.
 Repeal of all forms of transporta- ton taxes, effective January I, 1922.
 An increase from $2,ooo to $2,5oo in the exemption to married men having an annual net income of $5,ooo or less, effective January I, 1921.
 An increase in the exemption to heads of families on account of de pendents to $4oo for each dependent, instead of $2oo, as at present, effec- tive January I, 1921.
 Exemption from tax of the first $500 of income received by individu- als from investments in building and loan associations, effective January l, 1921.
 Repeal of the tax on fountain drinks and ice cream and the substi- tuition of flat tax of 10 cents gal lon on all fountain syrupS, to be paid direct by the manufacturer, effective on enactment.
 Toilet Preparations.
 Repeal of the stamp taxes on per fumes extracts, tooth paste and toilet preparations and proprietary medi- cines and the substitution of a manu- faCturer's tax of five per cent. on the sale prices, effective on enactment.
 Substitution of a manufacturers tax of two cents gallon for the pres ent 10 per cent. on the sale price of unfermented juice beverages, and car bOnated waters or beverages or other soft drinks sold in containers, effeC- tive on enactment.
 Reduction in the manufacturers tax on candy from five to three per 
 furs from 10 to five per cent, and on sporting goods from 10 to five per cent, and the levy on art and art works from 10 to five per cent, cfec- tive on enactment
 Taxing Juice Makers
 Imposition Of manufacturers tax of three cents a gallon on certain classes of grape juice and two cents gallon on other classes, in lieu of the present tax of 10 per cent. on the manufacturers selling prices, eff feCtive on enactment.
 The levying of five cents pound on carbonic acid gas sold to manu- lecturers of carbonatcd waters, effec- tive on enactment.
 The secretary of the treasury is authorized to settle disputes over back taxes without resort to the courts. This new provision is de signed to simplify the collection of $I 300, 900 ,OOO