Polk County news. [volume] (Benton, Tenn.) 191?-1983, 1921-09-29
SENATE COMMITTEE
PLANS TAX BILL
ss.s24 100000 AMOUNT PROPOSED
UNDER REVISED BILL, IS SUM
NECESSARY FOR YEAR 1922
INCREASE OF SO4, 100000
Committee Report Gives Full Details
OF Anticipated Changes In Federal
Income And outgo

Washington.-A shrinkage OF more
than one billion dollars in income and
excess profits taxes this fiscal year
was reckoned upon by the senate fin
ance committee in revising the house
tax BILL with a view to raising 1894
600 900 in internal revenue in the
twelve months ending next June 80.
This was disclosed by the majority
report approved recently by a commit
tee of republicans and made public
The estimated total of revenue under
the bill is $136 100000 less than treas
ury experts have figured would be re-
turned this fiscal year under the pres
-ent law, but is $S4,000,000 more than
the revised total under the house bill.
Estimated returns this fiscal year
from income and profits taxes are ST.
$50, 100000 according to the report, as
against approximately $S,000,000,OOO OF
actual collections in the fiscal year
ended last June 30. Only about $780,
100000 of this difference of $1,12O. OO0,-
600 is accounted for by changes pro-
posed in the present law. Treasury
officers and committee members ex-
planned that the remainder is charged
off to shrinkage on account of business
depression; diversion of funds to tax
exempt securities and other causes.
Declaring that the S3,324,O00, 900 to-
tai proposed under the revised bill was
only $4,000, 900 more thap this treasury
had estimated would have to be raised
through internal taxes, the report said
that this was "a margin of safety none
too large for the fiscal year 1922, in
view of the existing business depres-
sion and the uncertainty attaching to
the yield of the income and profits
taxes"
"Your committee has acted" the re-
port said, ION the assumption that
with the exception of the special rail-
road expenditures, which will be nearly
if not wholly completed in the fiscal
year 1s22-the aggregate expenditure
for this fiscal year 1928 will be sub
stantiaIly as large as the 1922 budget
amount, in round figures, to $50O,0O0,-
900; and the receipts from customs and
miscellaneous ,'sSurces for the fiscal
year 1923 are estimated at $7SO,OOO,-
0OO Deducting both amounts ($1,23O,-
OOO) from the total estimated expendi-
lures for 1922 f$4 ,O34, 000,0 00), leaves,
in round figures, $1,000, OO0,0 900, to be
supplied by internal taxes for the fis-
cal year 1928.
''The revenue bill as recommended
by your committee will raise during
1928. it is estimated, $2,235, 100000.
"The difference or deficit of 65,OOO,-
OO0-about equal to the corresponding
surplus for the fiscal year 1922-can
and should be avoided by saving and
economics. Your committee deliber-
ately recommends tax program to
meet ordinary expenditures on the pres
ent scale, assumes that a reasonable
measure of retrenchment and reduc-
iton will be accomplished"
Regarding surtaxes, the report said;
"Your committee recommends reduc-
ton of the maximum surtax from 90
per cent to S2 per cent in the belief
that in the near future the lower sur
tax will, by stimulating sales and prof
it-taking, and by making possible trans
actions now blocked by excessive sur
tax rates, not only facilitate needed
business readjustments, but actually
increase the revenue. In the long run,
in the opinion of your committee, the
SO per cent rate will yield more reye:
nue. than the 65 per cent rate"