The Birmingham age-herald., 1921-08-17
HUGE SLICES ID BE
 CUT FROM TAX BILL
 F0RDNEY ASSERTS
Says Reduction This Fiscal Year Will Exceed 193 Mill lions, With Larger Cuts
 Next Two Years
By Associated Press

Washington, August 16.-The na- tion's tax bill will be cut $193, ,640,- 900 this fiscal year; $377,790,000 in the calendar year 1922 and $780, s30,00o in 1923, Chairman Fordney of the ways and means committee, asserted today in the majority re-. port explaining the tax revision bill framed by republican committee men.
 democrats of the House prepared in caucus for a broadside assault on the republican measure, planning to brand it as a rich mans bill. Their minority analysis attacking the means by which reductions were achieved.
 Meantime, the rules committee re- ported a rule to put the bill through the House at p. m., Saturday. De- bate will begin at Il a. m., tomor- row, the measuring having been  and means committee with the demo- crats voting solidly against it.
 Chairman Fordney insisted in the majority report that the policy or the- bill was reducing rather than shifting tax burdens" He estimated reductions in levies, some of which will not become fully effective until 1928, as follows:
 Repeal of excess profits January l, 1922, s450, 100000.
 Reduction of taxes on candy, $S,0oo,- incomes to s2 per cent January l. 1922. s90,0Oo,o00.
 Increased exemptions of heads of families to s2,500 for incomes not in excess of $5.090, s40,0e0,000.
 Additional exemptions for depen- dents to s4oo, from $2o0, $So,ooo,- 900.
 Repeal of all transportation taxes January 1, 1922, s262 2,o00,000.
 Repeal of tax on life insurance s6,300,o0o.
 Repeal of taxes on beverages seo,- 000 900.
 Reduction of taxes on cady, $s,Qoo.- GOO.
 Sporting goods $2,0oo,0oo
 Furs $4510,000.
 So-called luxury taxes SIS, ,000, 900.
 Eestimated gains in taxes begin- ming with the calendar year 1925, are given as follows:
 Increase of corporation income tax from 10 to 125z per cent, January l, 1922, $1s5,75o.ooo.
 License to sellers of soft drinks sl0,o0o,o00.
 Tax of cents on creai beverages SIP 2,0O0,000.
 Tax of cents on carbonic acid gas $2,000,000.
 Taxes on fruit juices, still drinks, and fountain syrups, $12,000,00
 Substitution of manufacturers taxes on toilet preparations, and propriet- ary medicines for existing stamp taxes, $S,o0o,00o.
 ~ The total loss in revenue Is thus placed at $96S, S,0S0,000, and the total gains at s177,750,0o0, leaving the net loss of $790,S30,000 estimated by the report.
 Represents S7 Per Capita
 Applying to individual taxpayers the net difference of $790,530,t00 pe- tween these loses and gains MT Fordney said they represented a re- duction of $7 per capita, Tor saving to the average family of $s5 per year."
 Since the repeal of the excess prof ifs tax and the feduction of surtax rates on individual incomes do not become effective until 1922. Mir. Ford ney said s40s,25o,ooo of the contem- plated loss of revenue would not De reflected in revenue collections prior to the calendar year 1923. Discussing elimination of these levies, Mir. Ford- -ney quoted two former democratic secretaries of the treasury--Glass ana Houston-as urging their repeal, MT Glass in 1919 and MT. Houston In 19g0.'
 Emphasis was laid by the chairman on sections of the new bill desisnea
 tContinued on Page Two)