Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-11-08
TAX BILL FACING
THIRD REWRITING
Revised Measure Passed by
Senate Expected to Yield ST.
I 25o,ooo,ooo Annually
GOES NOW TO CONFERENCE
BY the Associated Press

Washington, Nov. S.-The Tax Re-
vision Bill now faces it's third re-
writing, this time by the House ard
Senate conferees.
The measure finally wds passed early
today by the Senate, 3S to "a, at the
end Of continuous session lasting
nearly sixteen hours. It will be re-
turned to the House when that body
reconvenes tomorrow and Republican
leaders there plan to send It to con.
ference Thursday. II may reach the
President for his approval late in the
month.
At rough estimate Treasury experts
say the bill in its present form would
not approximately $3.50, 100000, or
$500, ,000, 900 less than the present law
and about the amount Of revenue which
Treasury officers have said the Govern
ment must have. Eventually the bill,
the experts assert, will reduce the ma
tion's tax toll by about $3.50. 200, 900
year.
While they undoubtedly will make
many changes in the measure. the con-
ferees are not expected materially 70
alter the total of revenue. AS the bill
now stands there are just three ma ior
provisions on which the House and
Senate agree. They are repeal of the
excess profits tax and the transporta
tion taxes on next January I, and the
retention of the present tax on corpora
tton capital stock.
Outstanding Provisions Of Bill
Other outstanding provisions of the
bill are reduction in the maximum
surtax rate from G5 per cent on all
over 81 900. 600 to so per cent on all
over 5000 900, as against the House re-
duction to 80 per cent on all over
S69, 900.
Retention Of the House provision
granting increased normal exemptions
Of $500 to heads OF families having net
incomes OF $4,000 or less and 5000 on
account of dependents,
Repeal Of tho $1,000 normal cxemp-
tion 70 corporations except in the case
of those having net incomes Of S25 900
or less.
An increase in the estate tax maxi
mum rate from 25 per cent on oil over
$40 900 900 to 30 per cent on all over
$100, 900 900. Increased taxes on
medicinal beer, wine and whisky.
A provision taxing gifts of property
by any person at rates ranging from l
per cent on the amount between $50 900
and $50. 900 to % per cent on all over
$4,000 900.
Repeal of the excise taxes on chew
fng gum, sporting goods, musical in
struments, electric fans and many other
articles. as we'll as the stamp taxes on
proprietary medicines and toilet prep
arations. The levies on fountain drinks
and ice cream also are out.
Income Surtax Storm Center
The big fight between the Senate and
House is expected TO develop over the
income surtax rate, with the general be-
lief at both ends of the Capitol that the
conferees will reach a compromise at a
figure around 40 per cent. House Re-
publican leaders believe they can scotch
the movement among some Republicans
from Western States TO have the House
instruct its managers to accept the SEN
ate maximum rate.
In the final drive in the Senate last
night to pass the bill many amendments
were offered, but few of them were ac-
cepted. The most important of those
approved was that taxing gifts of prop
erty, which is designed to prevent
evasion of the surtax by wealthy indi-
yiduals by a distribution of their prop
erty among their relatives.
Under another amendment gains real
ized by taxpayers from the sale of cor
poration stock would be taxed on thu
full amount instead OF on only 40 pc,
cent as it was claimed would be tht
case had the capital asset definition II
the bill remained unchanged.