New-York tribune., 1921-08-13
$500 Raise in Addition tn
$500 Gain for Each De-
pendent Is Voted bv
House Tax Committee
Total Loss Will Be
Only SO Million
Manufacturers Levy Nav
Be Substituted for Re-
peal of Luxury Toll

WASHINGTON, Aug. .12.-Practica Nv
winding up revision of the lew sec
t'ons of the 1913 tax law, House Ways
and Means Committee Republicans
voted to-day to increase from $4,000 to
$1,000 the exemption allowed married
men having an annual net income of
$4,000 or less. This change would be
retroactive to January l, 1921. and
would be in addition to the increase of
S2o0 in the exemption for each de-
pendent of head of a family previ-
ously decided upon.
Agreement also was reached, it was
SAID. to decrease the manufacturers
tax on candy from 5 to per cent, the
manufacturers tax on furs from 10 to 5
per cent, the tax on art works from 10
to per cent, and to repeal all of the
so-called luxury levies, including those
on carpets, rugs, trunks, travelling
ca ses, pocket booklets, umbrellas and
portable lighting fixtures, as we'll as
those on wearing apparel.
Tobacco Levies Untouched
Committee members also were said
to have agreed not to increase the
taxes on cigarettes, cigars, tobacco and
alcoholic beverages. 1t was reported
that in reducing the income surtax
rates to maximum of 32 per cent from
the present So per cent the committee e
had made no provision for a furth g +
reduction to 25 per cent next year, as
recommended by Secretary Mellon.
In voting to repeal the so-called
luxury taxes, the majority members
decided to substitute, if possible, a
manutacturers tax on the same ar
ticles, if designed to be sold at sums
in excess of specified prices. The rate
suggested was 3 per cent on the manu-
facturers' prices and the return was
estimated at $l0O,O0O,O 900 annually. as
against S25,000,O 900 under the present
law. 1t was explained, however, that
such provision would be difficult to
administer because the prices of such
goods were not standardized, and that
1t might be necessary to abandon the
plan.
The motion to increase the exemp-
ton allowed married men receiving
Representa- tive Longworth of Ohio.
and prevailed after Joseph S. Mccoy,
government actuary, had explained, it
was said. that the total loss in revenue
from this change and the increase in
exemptions for dependents would be
only S50,000,0 900, or the amount com
mlttee members estimated would be
lost by reason of the dependent ex
emptlon increase
Goes to House Monday
Under present plans of Republican
leaders, the committee draft of the
completed bill, which will be in the
form Of an amendment to the 1918
law, will be presented to conference
of House Republicans at l p. m. Mon
day and introduced in the House later
that day. Actual consideration of it
there, however, it vas said, would 90
over until Wednesday in order tha
the measure could be formally passed
upon Tuesday by the Ways and Means
Committee with the Democratic mem
bers present.
While the question of special rule
is to be decided by the party confer
erce, some leaders said tonight they
expected the majority to adopt rule
limiting general debate, fxing a time
for vote and giving priority to com
mittee amendments. They regarded
final action by the House a week from
tomorrow as something more than a
probability, but it was emphasized that
this was a matter for determination
BY the party conference