Evening journal., 1921-09-17
ALL income
TAXES ARE CUT
One Per Cent. Surtax on
Incomes From $4,000 to
$4,000 Eliminated
RATES FOR OTHER
BRACKET CHANGED

WASHINGTON. Sept 17.-Re-
vision of the House tax bill virtually
was completed by the Senate
finance committee. whicn on We'd
nesday will report to the Senate a
measure having these outstanding
proposals;
Repeal of the excess profits tax
as of next January 1. as proposed
by the House.
Reduction Of the income surtax
rates from a maximum Of 65 per
cent to s2 per cent. effective next
January 1.
An increase in the corporation in
come tax from 10 per cent TO 15 per
cent. effective next January 1, instead
of 1914 per cent as proposed by the
House.
Repeal OF the corporation capital
stock tax as OF next year.
Retention OF present rates on ex-
press packages and oil by pipe lines
and retention of the taxes on freight
and passengers for the calendar
wear. 1922, only at half the present
rates of three per cent and per
cent, respectively. The House pro-
posed repeal of oil OF these taxes as
of next January 1.
In agreement to the House maxi
mum surtax rate of 32 per cent, the
Senate committee adopted today a
rearranged schedule of rates under
which individuals having incomes O.
from $4,000 to $4,000 would be re-
llieved of the present surtax of
per cent.
Beginning with incomes OF 5000
and ending with those of $4,000
the rate in each bracket would o.
reduced / per cent In the brackets
from $1,000 to $4,000 the eNstnl
rates would be increased ! per cent
J and In the brackets from $4,000 Il
s66. 600. the present rates woulC
stand. Incomes OF 100000 or NOR
would be taxed at the maximum
rate.
Members OF the committee. eX
nlained that through this plan an'
The Increased exemptions allowed L
heads OF families and on account o
denendents there would be reduc
kuon OF the income taxes all alonl
% the line except in the case OF singh
y men having incomes Of $4,000 Of
less. ~.
= The loss in revenue through tn
] re-arrangements of the surtax rates
= was estimated by treasury expert
o at S1S,O0O,OO0, making the tota
10 annual loss in individual income
( taxes S17S, 100000, including $50
- 600 600 through reduction Of IN
n maximum surtax rates ana Wv
Il 400 600 through increased exemp
0 tions To heads OF families and OF
j. account of dependents.
T. chairman Penrose announced 10
l. dav that in offering the bill in IN
- senate he would ask that II be MAD
the unfinished business so as TO orlnl
II carly consideration He was OF IN
h oninion that its passage would no
n he long DELAYED. After these act
Il the bill will go to- conference TOT IN
composing OF differences pe0"ee'
o. the Senate and House.
senator Smoot, Of Utah, Repub
lucan member Of the finance com
mittee. plans TO offer in the Senat
aa a substitute for the whole meas
ure his bin in which is incorporate
manufacturers tax plan. I'M
measure has the support Of a mum
ber of manufacturers association
ronresentatives of which we're
y conference here this week.
b dnal vote on the bill was de
10 ferred until next WEDNESDAY
hut the committee will hold anothe
session today to gather up loos
Is ends AT that time, Senator Smoe
ID win offer his substitute bin and ser
E. ator calder, Republican, New Yorl
n mans TO introduce his proposal fe
s a tax OF IS a barrel on 2.75 per cen
= beer.
W THE committee reconsidered te
\ dav IT'S decision TO include In the o.
H. manufacturers tax OF per cen
on proprietary medicines an
adopted the house proposal TO r.
move all taxes on these articles II
- proposal for A per cent. tax o
II cosmetics. perfumes and toilet pr
narations in lieu Of the presei
stamp taxes, effective next Januai
-, l.. stands, however.
In order to make the taxes on so
o. drinks uniform. the committee vote
TO fix the tax on finished founta'
syrup at Ia cents gallon, II
h stead of 10 cents.