Every evening, Wilmington daily commercial., 1921-09-17
SENATE COMMIT TEE
FINISHING ITS WORK
ON HOUSE TAX BILL
Rates on Incomes Up to $2o,-
600 SIashed One Per Cent
by Finance Body.
$4,000, 900 LOSS is SEEN
By Associated Press 10 EYER Fvenfne

BY Associated Press TO Every Evening
Washington. Sept. 17.--Having prao-
tically completed revision Of the House
tax bill, the Senate finance committee
was ready to receive Senator Smoot's
proposal for manufacturers sales
tax and Senator Calder's plan to tax
2.75 per cent beer at the rate Of IS
barrel.
The sales tax is embodied in a bill
which Senator Smoot had given no
/ tice he would offer to the committed
today as substitute for the revised
| House measure. Under the Utah
Senator's plan all internal revenue
would be obtained from five sources.
incomes Of individuals and CORPORA
tons, estate taxes, tobacco taxes, and
three per@cent levy on mauufac-
turers' sales. Senator Smoot estimates
that these taxes would yield 2.Ss0. 000. .
600 annually and that this sum, with
the amounts received from the tariff.
through collection of back taxes and
from salvage and miscellaneous
sources, would be sufficient to meet
the governments revenue needs for
this and succeeding years.
Senotor Calder's beer proposal has
drawn fire from the Anti-saIoon
League which has announced through
its general counsel, Wayne 3. Wheel
er. that it would be strongly opposed
by the prohibition forces.
only few loose ends Of the re-
; vision OF the House bill remained to be
caught up today by the Senate com.
, mittee. Revisions Of the levy provi-
sions OF the House bill as previously
agreed upon were expected to stand
The committee, however, had decided
to delay a final vote until next Wed.
nesday, after the legislative and treas
ury experts had completed the actua
drafting of the measure.
. Democratic members are exnecta,
70 vote solidly against the bill and L
! carry their fight to the Senate floor.
The committee will report to tn,
senate a bill having these outstandins
, proposals:
Repeal of the excess profits tax mex
January l, as proposed by the House
reduction of the income surtax rate
from a maximum of 65 per cent to 3
per cent, effective next January 1.
An increase in the corporation in
: come tax from 10 per cent to is De
: cent, effective next January 1. fnstea
7 of l21s per cent, as proposed by tn
: House.
Repeal Of the corporation capt.:
: stock tax next year.
retention on the present rates O
express packages and oil by pi1
s lines, and retention of the taxes q
n freight and passengers for the caller
e dar year 1922, only at half the pre-.
n ent rates of 3 per cent and s per cen
IS respectively. The House propose
d repeal of all of these taxes as of ne,
5 January l.
e. In agreeing to the House maximui
ie surtax rate of 80 per cent the Sena
committee adopted a rearrange
schedule of rates under which ind
viduals having incomes Of from IS 5,ol
to $4,000 would be relieved OF II
present surtax of l per cent.
i Beginning with incomes of 500
s and ending with those OF $20, 900. Il
rate in each bracket would be reduc.
/ per cent. In the brackets from S2C
= 900 to $4,000 the existing rates wou
1, be increased l per cent, and in Il
a. brackets from $4,000 to $4,000 Il
- present rates would stand. Ineom
OF s66,000 or more would be taxed
r the maximum rate.
" Members of the committee explains
that through this plan and the i
ne Icreased exemptions allowed to heads
n families and on account of dependen
as there would be a reduction of the /
come taxes all along the line exec
in the case of single men having /
comes of $4,000 or less.
The loss IN revenue through the l
arrangement of the surtax rates W
!. estimated by Treasury experts
- SlS,00o,0Oo. making the total annl
81 loss in individual income taxes SIT
- 100000. including s90.00O,0 900 throu
~ reduction of the maximum surt
IS rates and s7O.oOO,O 900 through increas
- exemptions to heads OF families a
~ on account Of dependents.