New Britain herald., 1921-08-13
White House Statement Explains New I axes Will Be Equitably Distributed
 Over Rich and Poor
Exemption For Married Men Increased to $2,5OO and , &OO For Each Dependent p-- g-@
 Tobacco Levy to Stand.

Washington. Aug. 13.-An oficial tion tax revision program was issued today at the White House. It de- clares that 'the aim was to establish methods that would raise the needed revenue within reasonable certainty make collections sure and inexpensive and properly adjust the burden amons 1al classes of the community" : Tt Is felt that highly important progress has been made along these Nnes,'' the statement says, adding: . The Rich Mans Taxes.
 There has been no effort to relieve the rich Of their share of burdens, but rather to insure that no class will zYe left an avenue of escape from these A casual anaylsis sof the pro- posals shows that what may be de- scribed as the rich mans taxes will produce about $1 BOO, 100000 while the balance will be distributed over the entire community. rich and poor. The reduction to 32 per cent of the highest income and surtax brackets is expected by the experts to produce actually more revenue From these sources than do the pres Tent much higher rates. The present rates prevent transactions which would involve application of the high rates and thus keep taxes away from the government. Also they drive money into tax-free securities. to the distress of business: and they lead to fraud and cvasionA
 Excess Profits Tax Uwise.... .. The experience has shown. in deal- ing with the excess profits taxes, that 5 wheree thsre Is periodic selling this ntax is pyramided, multiplying tbe
 1rder of the cousuular, and inducing specuixtjAn ma 6fnwasts- 1t has been largely responAhls for the intense speculation. that followed tho war. It l. ansuns.tdsfsctory tax on which tc base revenue Estimates because it's raoduct Of revsnus Is 50 extremely var
 ble, and in the present epoch of re- daced earnings it would utterly fail 1 to produce the amount needed ~In increas1ng the tax on corpora { ton earninxs an exemption is made of those having earnings of $2,oo0 or Iess-the poor mans corporations. The number that would thus be ex- erpted would sexceed 100000"
 Business To Be Freed.
 After reviewing benefits which it is claimed will follow from repeal of the nfrpnsportation taxes and substitution
 f manufacturers taxes for the so- ycalled "nuisance" levies. the state naent concluded:
 The whole tax reform program rontemplates freeing business from what have been found paralyzing and exaspetating restrictions, encouraging to the utmost the resumption of en- k tArprise and business removing every - possible incentive to evasion and \ fraud and distributing the tax bur den with the greatest possible equity among all classes Of people, keeping in mind the purpose to impose the larger share on those best able tn nay"
 Having practically completed re-
 Esion of the levy sections of the 1918 flaw yesterday, majority members of the house ways and means committee expected to finish work on the tax bill today 70 as to have committee draft ready for consideration by the conference of house republicans called Tor Monday.
 Exemption for Married.
 . The republican members of the Mouse ways and means committee have voted to increase from $20OO to l/$2,500 the income xax exemption of z married persons whose net income is $5,00o or less. This is in addition to recent action granting an increase from $2oo to $400 in the exemption for each child or dependent. These changes will mean an annual loss in |N revenue of about $50,000,00o, accord ing to revised estimates. AS the bill
 Dw stands. the normal income taxes P6f the. unmarried have not been re- duced.
 Tax on Tobacco. The committee also has decided that the taxes on tobacco and cigar ettes win not be increased eBfore it was determined that government k expenditures were to be cut $53o,000. oc1; Secretary of the Treasury Mellon Recommended an increase of $100.- 1000, 900 a year in these levies. Other ta- charges were:
 Complete repeal of section s04 of tho revenIe act of 1918. which in- neiudes all the so-called luxury taxes
 y wearing apparel, umbrellas, car-
 ets and other. articles. Previously
 lnly parts of the section were elim- inated. qsN A9 s,ss-4s'
 Ctndy Tax Lowered
 Reduction of the present 5 per cent. ta. on candy to per cent.
 Reductibn ofS the taxes on furs from 1osto per cent.
 Reduction of the 10 per cent tax
 work1l of art to per cent
 The Republican members also re-
 ected th4 recommendation of MT. pdsFon .tAAt sin 1928 the maximum surtax " u cut from 32 to 25 per bent Hlexlpoly tl1e committee voted tc redue fonA ss to 3z per cent
 " - on ssvs4Eh Pase.)