New-York tribune., 1921-08-21
Changes Bill Provides
From Present Leuies
Repeal Of Excess Profits, No
Tnr on Motor Boats, Nor fn-
Sur0uce Policies Ia 0rkEered

WASHINGTON, Aug. 20.-The prin-
cipal changes in present tax levies
made by the revenue bill as passed by
the House to-day, include:
Repeal of the excess profits tax.
Increase of the corporation income
tax from 10 to II per cent, effective
next January 1.
Repeal of the income surtax rates
from SO per cent to 65 per cent, in
elusive
Increased exemptions to heads of
families, effective as of last January /,
to $500 for incomes not in excess of
$4,000 and additional exemption for
dependents to S4OO from 5000.
Repeal Of the tax on life, fire and
marine insurance policies and imposi-
tion Of the corporation tax of IL per
cent on all such insurance companies,
except fratcrnal, effective next Janu-
airy j.
Repeal Of the transportation taxes,
effective next January l.
Repeal of the taxes on fountain
drinks, ice cream and other beverages
and the substitution Of manufacturers
taxes as follows:
-Four cents q gallon on cereal bever-
ages, five cents pound on carbonic
.cid gas, two cents a gallon on fruit
juices, OF soft drinks, three cents n
gallon OH still drinks, exclusive OF
mineral and table water, and 10 cents IL
gallon on fountain syrups These
changes would go into force on enact
ment of the law
Repeal of the stamp taxes on per-
fumcry, cosmetics, toilet preparations
and proprietary medicines upon enact
ment of the bill.
Repeal Of the 10 per cent tax on
baseball, football, and basketball equip
ment, skates, toboggans, snowshoes and
skis. and reduction OF the 10 per cent
tax to on tennis, golf and polo equip
ment, games and the like the whole to
come into force on enactment Of the
bill.
Exemption from the income tax OF
the first $500 OF income from invest.
ments In building and loan associa-
tions, effective at passage Of the law.
reduction from 5 to 3 per cent in
the levy on candy and Of from 10 to 5
per cent in the levies on fur articles
and art and artworks, and repeal of the
tax on electric fans. These, too, would
be effective when the bill became law
A reduction from 10 to per cent in
the tax on all yachts with motor or
other craft less than thrty-two feet in
length or less than five tons carrying
capacity, exempted from this tax. This
provision also would be effective upon
enactment of the bill.
Exemption from the income tax of all
allowances from the Federal govcrnmnt
for the service of the beneficiary or
another in the military or naval forces
Of the United States, effective immcdi-
ately the bill becomes a law.
Repeal of all the so-called luxury
taxes now collected by retailers and
the substitution of a manufacturers
tax of per cent On the following
articles when sold by the manufacture
crs at the sums given:
Carpets and rugs, $3.50 a square
yard; trunks. $50 each valises, travel
ing bags, suit cases and hat boxes, SIS
each; purses, pocketbooks, shopping
and handbags, S4 each; portable light
ing fixtures, $40 each; umbrellas and
parasols, $3.50 each; fans, 81 each, and
house or smoking coats or jackets and
bath or lounging robes, S3 each. These
changes would be effective upon the
signing of the bill.