The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-09-21
COMMITTEE
FINISHES
TAX BILL
Revision is Virtually
Completed by Sen
ate Finance Com
nlittee

11llttee
Washington, Sept 16.--Reyision
ef the house tax bill virtually was
completed today by the senate fin
8 sance committee. which, under the
present agreement, wi1l report to
the senate a measure having these
outstanding proposals:
Repeal OF the excess profits taa
as of next January /, as proposed
5 by the house.
Reduction Of the income surtax
rates from a maximum Of 65 per
: cent TO SO per cent. effective next
January
An Increase In the corporation
income tax from 10 per cent to Is
per cent next January 4, ir stead c.
40 IL per cent as proposed by the
house.
Repeal Of the corporation capi-
tai stock as OF next year
Retention OF present rates on ex-
press packages and Oil by pipe
lugs. ana retention Of the taxes on
&Eeisht and passengers for the cal
Fender year 1922. only at kalf the
present rates of 8 per cent and 8
per cent, respectively. Tae house
proposed repeal Of all Of those
: taxes as of next January /.
Ia agreeing to the house maxi
mum surtax rate OF 80 per cent, the
senate committee adopted today a
rearrangede schedule Of rates under
which Individuals having incomes
of from S55. 600 to $4,000 will be re-
lieyed of the present surtaK Of per
cent Beginning with incomes of
8 5000 and ending with those Of
$40 ,09e, the rate in each bracket
would be reduced per cent. In
the brackets from s26. 600 to s34,-
600 the existing -ates would be in
creased I per cent and in the
b5ackets from $4,000 TO :s66, 600
the present rates would stand. In
comes Of s66,980 or more woaid be
taxed at the maximum rate.
Members Of the committee ex-
planned that through this plan and
the increased exemptions allowed
Ito heads offanilies and on account
of dependents there viii be re-
ducticD of the income taxes all
along the line except in the case
81 siigMslrgn having incomes of
5000 or less.
The loss liz revenue through the
rearrangs1aeat of the surtax rates
was estimated by treasury experts
at 81 ,900, I 600, making the total an
uuai loss In Individual income taxes
s$178, ,eS9, geo. including s90.e00,-
GEO through reduction OF the maxi
mum surfax rates and SI9. .960, 00o
through Increased exemption to
heads Of families and on account
sof dependents
A final vote On the bill was de-
ferred today until next Wednesday
i but the committee will held anoth-
& er session tomorrow to gather UP
loose ends At that time Senator
Sa1oot Will offer his substitute bill
and Senator Calder, Republican
New Icfk, plans to introduce his
proposal for a TAX of IS a barrel
on 2.z5 per cent; beer.
The committee reconsidered to-
day its decision to- inclade in the
bill a manufacturers tax of 2 pei
cent on proprietary medicines, and
adopted the house proposal to re-
move all taxes on these articles
Its proposal for q per cent tas
on cosmetic~, perfumes and toilet
preparations in lieu OF the present
stamp taxes, effective next Janu-
z ary stands. however.
In order to make the taxes or
soft drinks uniform. the committee
voted to fix the, tax on finished
fountain syrups at I 1-2c gallon
Instead OF 10 cents.
The house plan to impose a
per cent manufacturers tax on the
entire wholesale selling price of E
number of articles If sold in excess
of specified amounts was amended
$50 that the tax would be paid only
en that portion of the selling price
IN excess of fixed sums.
The house proposal for taxing
life insurance companies vas ap-
proved, except that they would bt
required to pay a Is per cent ta2
on their investments income. effec.
tive as of last January /, instead
OF a IL i-2 per cent rate. The
present taxes on premiums would
bp repe2 led as of next January
Fire, marine and other insurance
companies, would be taxed as a
present. except that the highel
corporation income tax would be