The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-08-19
NEW TAX BILL To
SAVE MILLIONS
Fordney Sees Cut of S790, $780,
600 in Year.
REVISED BILL is APPROVED
Rep. Frear of Wisconsin Says He Will
Ask Taxation of Undivided Prof
it's of corporations-Is OPP
posed to Sales Tax.

Washington, Aug. IA reduction
of $3.50, $4,000 in the annual tax bill
of the nation will result from the
changes in the 1918 revenue act en-
bodied in the new administration tax
bill, Chairman Fordney of the ways
and means committee declared in
majority report filed on Tuesday with
the house.
"InaSmuch as the repeal Of the eX-
cess profits tax and reduction of surtaX
rates on Individual incomes do not be-
come effective until the calendar year
1922" the report said, "S4O6, 25O,OOO
of the contemplated loss of revenue
will not be reflected in revenue col
lections prior to 1928"
Years Cut 5000, 100000.
Actual reductions in taxes for this
fiscal year, the report continued, are
estimated at approximately $2OO,OOO.-
600 total collections under the new
bill, being figured at $3.50, 100000 as
against estimated collections of 3d.
570,O0O,CO0 under the present law.
Estimated reductions in taxes be-
ginning with the calendar year 1928
are given in the report as follows:
Repeal of excess profits, January l,
1922, $45OOOO,00O.
Reduction of surtax rates on indi-
vidual incomes to 30 per cent, Janu-
airy 1, 1922, $9O,OOO,OO0.
Increased exemptions of heads of
families to $4,000 for incomes not in
excess Of $4,000, $40,0O0OOO.
Drop Railroad Levies.
Additional exemptions for depend
ents, increased to $500 from 5000, $780,
100000.
Repeal of all transportation taxes,
January 1, 1922, 1862 100000.
Repeal of tax on life insurance, $685.
100000.
Repeal Of taxes on beverages, $780,
100000.
Reduction of taxes on candy, $8,-
100000.
Sporting goods, $2,OOO,OOO.
Furs, $4,510,O0O.
So-called luxury taxes, $15,OOO,OOO.
Gains in Six Items.
Estimated gains in taxes beginning
with the calendar year 1923 are given
as follows:
Increase of corporation income tax
from 10 to 1912 per cent, January 1,
1922, S133, 100000
License to sellers of soft drinks,
$1O,OOO,o0O.
Ta,v Of *,
$12,OO0,00O.
Tax of cents on carbonic acid gas,
100000.
Taxes on fruit juices, still drinks
and fountain sirups, $12OOO,000.
Substitution of manufacturers taxes
on toilet preparations and proprietary
medicines for existing stamp taxes,
$S,OOO,OOO.
The total loss in revenue is thus
placed at $96S, OSO,OOO, and the total
gains at $177,75O,OOO, leaving the net
loss Of $3.50, 100000 estimated by the
report.
Make Hasty Changes.
Overnight changes made in the bill
provide for a corporation tax of 1919
per cent instead of 10 per cent on
life insurance companies, effective
this year, this levy to be in lieu of all
other taxes, including those on poll
cies, except the corporation stock and
stamp levies.
In the case of individual taxpayers
deriving profits from the sale of capi-
tai assets. 10 per cent tax on the
gain from the disposition of such as
sets would be imposed where the net
income and capital assets gain eX-
ceeded $4,000 instead of $4,000, as
fixed in the original committee draft.
The revised bill was approved for
mally by the ways and means commit
tee, with the Democratic members
voting solidly against it. The Dem
ocrats plan to file minority report
in which they say they will present
figures to show that with few ex-
ceptions the effect of the proposed tax
revisions will be to lower the sums
paid by those best able to pay. 1t
will be framed at a caucus of house
Democrats
Representative Frear of Wisconsin.
a Republican member of the WAYS and
means committee, said he would file
a supplemental majority report dis
cussing the sales tax, which he op-
posed, and suggesting taxation of I'M
divided profits of corporations.