Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1921-08-25
NEWS review OF
CURRENT EVENTS
Revenue Bill Makers Find Way to
Reduce Taxes by About
Half a Billion.
GOVERNMENT EXPENSES CUT
Income Tax Allowance for Depend
ents Doubled-Grain Exchange
Regulation Bill Passed by
Senate-Silesian Question
Referred to League
of Nations.
By EDWARD w. PIckARD.

Although it has been freely and
generally predicted that the Repub-
licans would be unable to carry out
this year their party pledge to lower
taxes, that the revenue bill would
show only revision and not reduction
because Of the necessarily large ex-
.penses of government, it now appears
they have found a way to fulfill the
promise President Harding and the
majority leaders of the house got to-
gether last week and agreed on a
program by which government expen-
ditures will be cut $516,000,000. This
calls for the raising of $3,075,00O0OO
from internal taxation, which is $685.
100000 less than the total which the
treasury estimated would be the yield
of the present law during the fiscal
year, 1922. The total to be raised
from all sources, but not including
postal receipts, will be $4,034 ,000,OO
According to the agreement, saving
in the various departmental appro-
priations will amount to $4,000, 900,
and a plan was devised whereby the
public debt expenditures will be re-
duced S150,000,O00.
1t was the earnest desire of the Re
publican leaders that the imposition
of new taxes be avoided, and under
the present plan the proposed $40 tax
on automobiles, the Scent postage
and 2-cent stamp on bank checks will
be unnecessary.
OF more Immediate interest, per-
haps, to the average citizen was the
action of the ways and means COM
mittee Of the house, which is framing
the revenue bill, concerning the per-
sonaI income tax. 1t was voted that
the allowance for each dependent
shall be S400 instead of 5000 as at
present, which means greatly in
creased exemption for the man with
a large family. A proposition to in
crease the present exemption of ST.
900 for single persons and $1,000 for
heads of families to $1,500 and $500
respectively was voted down. This
of nearly fifty million dollars. An
other change adopted was the reduc.
ton of the tax on very large incomes.
There will be no tax above the 80 per
cent now levied on incomes Of $685.
nD0-which will be q relief to about
ten thousand of our wealthiest citl-
zens but will not call for cheers
from the rest of us.
Thc committee also decided on a
complete repeal of taxes on freight
passenger and Pullman transporta-
ton, and Increased the fiat corpor.
alton tax from 10 per cent to Is pei
cent. In this and other respects the
committee disagreed with the results
Of the conference with the President
and the changes it has made to date
lower the yield from internal taxes
TO 5000, 100000. OF course all these
things are dependent on further ac
tion by the committee and acceptance
by the house and senate.
The losses in revenue below the
present law which will result from
the program as it now stands include
S450,00O,0O0 from repeal of the exces.
profits tax, $90.000,OO0 from the re
duction in the higher surtaxes, $145,
100000 from repeal of the tax of ;
per cent on freight, S10O,0O0,0OO from
repeal of the tax of 8 per cent OF
passenger transportation, $4,000, ,OOC
from the repeal Of the per cent taS
on Pullman charges, s25,OOO,OOO iron
the repeal OF the soda fountain tax
$15,000,OO0 from the repeal of tn,
tax on proprietary medicines, beside
few smaller items which bring tn
total up to 1891, ,000OOO.
Increases made offsetting these loss