New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-18
Tax T'ripled
On Spirits for
Beverage Use


works of art paragraph to exempt from
tax inter-dealer sales.
The bill "a it is now completed will
produce $4,000 10000 in 1922. or
$200,oo0,o00 more than necessary, ac-
cordsng to Senator Watson, of Indiana.
This is between $500 10000 and $780,
100000 more than the House bill.
Chairman Penrose of The committee
authorized the giving cut of resume
OF the chief features of the tax bill as
revised in the Finance Committee.
This resume, covering important fea-
lures of the bill except those acted on
by the committee to-day, is a sum-
mary % important changes made by the
Finance Committee in the revenue act
Of 1918, and is as follows:
Repeal of the excess profits tax as
passed the House also provided for the
repeal of the excess profits taxes as
of January /. 1922.
Corporate Income Tax Raised
The imposition of Is per cent tax
upon corporate net income from and
after January I, 1922. The bill as it
passed the House provides for 123a
per cent tax upon corporate net in
come from and after January /, 1922. .
Repeal of the capital stock tax as of
July /, 1922. The bill as it passed the
mouse ClU not pIONlQe LOT u Icpedl VI
the capital stock tax.
A reduction OF one-half in the taxes
upon freight and passenger and Pull
man transportation for the calendar
year 1922 and the repeal of these taxes
on January /, 1928. The bill as it
passed the House provided for repeal
of the taxes upon freight, express, pas
senger, Pullman seats and berths and
state rooms and oil by the pipe lines
on January l, 1922. The bill as report
ed by the Finance Committee restores
TIE taxes stricken out by the House bill
upon express and oil pipe lines.
Reduction of the maximum surtax
rate to 80 per cent, the same as pro-
posed in the bill as it passed the House
with slight adjustments in the surtax
brackets proposed by the House. The
effect of the surtaX reduction is to re-
duce the surtaX payable by all taxpay
ers.
Increase in the personal exemption
of married persons having net income
not in excess of $4,000 from $4,000 to
$4,000, the same as proposed by the
House.
Increased exemption for children and
dependents from 5000 to $500 as pro-
posed by the House.
Repeal of the retail sales tax upon
proprietary medicines, perfumes and
cosmetics and imposition of 4 per
cent sales tax upon the manufacturers
selling price of perfumes, cosmetics
land similar articles. The House bill
did not impose the manufacturers sales
tax upon perfumes, cosmetics and sim
liar articles.
Sporting Goods Cut in Half
Reduction of tax on sporting goods
from 10 to 5 per cent. The House re-
duced it to 5 per cent and excepted the
following from taxation: Skates, snow
shoes, skis, toboggans, baseball bats,
gloves, masks, protectors, shoes, uni
forms, football helmets, harness and
goals, basketball goals and uniforms,
baseballs and footballs. The Finance
Committee recommends retention of
per cent on articles stricken out by the
House.
Reduction of rate of per cent on
chewing gum to 2 per cent Fhe
House did not reduce the rate on chew
ing gum.
Reduction of the per cent rate on
candy to 8 per cent in case of candy
selling at DO cents a pound and less,
and the increase of the 5 per cent rate
to 10 per cent in case of candy selling
for more than 40 cents pound. The
House reduced all candy to 8 per cent.
Restoration of the per cent rate
imposed under existing law upon port
Ible electric fans. The House repealed
this provision.
Restoration of 10 per cent rate of
existing law upon articles made of fur.
The House bill reduced rates to S per
cent and excepted certain cheaper fur
articles from tax.
Restoration of the 10 per cent rate
of existing law upon yachts and motor
boats. The House reduced this to 5
per cent.
Repeal of the policy taxes upon life
insurance and the premium taxes of
other Insurance companies on January
/, 1922. The House bill. also repealed
these on January /, 1922.
Imposition of Is per cent tax upon
the investment income of life insur-