The Washington herald., 1921-08-14
TAX REVISION BILL
Is COMPLETED BY.
HOUSE COMMITTEE
Excess Profits Levy Abol.
ished; Reductions in
Most Lines.

With reductions of $500, ,00o, 900
below the present high war taxes.
the Republican revision bill was vir-
tualiy completed by the House Ways
and Means Committee yesterday.
The cuts, directly or indirectly.
will tighten the. tax burdens Of near
~ everyone In the country. from the
head OF corporations, earning mil
lions, down to the children who
have been compelled to hand over"
extra pennies to get a chocolate
soda Chairman Fordney. Of the
committee. said:
The bill will raise about $1,000
100000. as compared with $500
100000 under the present statute.
White House Approves.
Approval Of the tax changes was
given yesterday in a White House
statement. which probably will ex-
pedite the bill through the House.
The statement said $500. 200: 600 had
been placed on rich corporations
and individuals. and s1.20o.ooo.ooo on
average people.
Plans are to vote on the bill in
the House next Saturday at 3
o'clock. More reductions were made
yesterday wnen express and oil pipe
line taxes were>repeated and the levy
on cereal substitutes for real beer
cut from Is to 12 cents gallon.
On all vendors Of soft drinks an
annual SO license tax was imposed
and a per cent levy to be paid
by manufacturers Eas put on arti-
| cles now covered by the so-called
luxury taxes.
Here is the way the new bill af-
fects everyone from steel corpora
tions to children:
Relief for Married Persons
The taxes of all persons paying
the normal income tax are reduced
$50 q year, while an additional re-
duction Of IS is given for each child
or dependent. This Is done by in
creasing the married persons ex-
emption from $4,000 to $4,000 and
by raising the child's or depen-
ldent's exemption from $500 to $500.
| All married people making s2.5oo or
less thus will escape the tax. while
those, with three children. for in
stance, can make s3.7oo without
paying anything into Uncle Sans
Golfers. These changes ahect In
come Of the present year.
All the nuisance taxes that have
caused the average man to howl
have been eliminated. No more
will extra pennies be required for
ice cream sodas. tooth paste, or
medicine, and the merchant after
January next, cannot charge
several dollars more in tolls for
high-priced wearing apparel and
other luxuries.
II YOU postpone your railroad
trip until New Years Day, you can
save s per cent on the passenger
and Pullman fare, and on your
freight and express shipments will
be no and per cent taxes, re-
spectively.
| Transportatien Tax Repealed.
All transportation levies have
been repealed in response to the
general demand for lower railroad
rates. This includes oil pipe lines.
The pennies of the children ought
to buy more candy after the new
law Is in effect because the tax rate
has been cut from to 3 per cent.
The wife's furs will pay only
per cent tax, Instead Of the present
10 per cent rate.
II you are aesthetic. you can OBJ
tain works of art for half the pres
ent tax of 10 per cent. But jew
elry is still to be taxed at the war
time rate.
Taxes on tobacco. cigarettes, tele-
graph and telephone, automobile,
admissions and dues. musical in
struments, estates and capital stock
will continue as at present.
| Excess Profits Tax Abolished.
Business concerns will no longer
be compelled to pay the excess
profits tax; as a substitute the pres
! eRt 10 per cent flat tax on their en-
tire Income will be increased by
per cent
Persons whose net incomes are
$4,000 or more Will have the maxi
mum tax rate reduced from IS 10 32
per cent I This will affect mainly
the millionairss and those almost IN
that class. In lieu of the repealed
soda water and soft drink taxes.
various levies OF moderate rates
have been placed on the manufac-
turers of these products. The lux
Iury taxes also have been transferred
to the manufacturer under a new
plan that should force down the cost
Of high priced articles. The manu-
facturers will pay per cent on the
price Of several articles, II they sell
them above certain prices. but moth
ing IL they cut them below. Under
the present law the consumer paid
only on the amount above certain
prices.
Luxury Tax Reduced.
Tho articles on which this tax is
levied with the wholesale prices.
sale above which will make them
taxable, follow:
Carpets and rugs. including fibre!
except imported and American made
principally of wool, $3.50 a yard;
trunks, $50 each; valises and all
travelling bags. including hat boxes
and toilet cases, SIS: purses and
pocketbooks, shopping and hand
bags, s.: portable lighting fixtures.
including lamps of all kinds. and
lamp shades, SO: umbrellas. para
soils and sunshades, $3.50; fans, 81:
house or smoking jackets, bath and
iounging robes, SO each.