The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-09-17
Senate and House
Cannot Agree
Federal Tax Revision Bill
Being Rewritten in the
Senate

today by the senate finance COM
rittee. Probably the most far
reaching decision OF the committee
was that to restore all transport2-
ton taxes but with those ON freight,
passenger and Pullman accommo-
dations in force only for 1922 and
al half The present rates. The
house bill provided for repeal OF
all of these levies on next January
/, /.
While agreeing to the house plan
to repeal stamp taxes on perfumes,
cosmetics, toilet preparations ana
proprietary medicines the commit
tee voted to impose a manufacture
ers' tax Of per cent on toilet ar
ticles and per cent. on proprle-
tary medicines, and to restore the
8 Der cent. tax on tcilst soaps and
powders which the house bill pro-
pose to repeal.
give per cent. reductions in the
taxes on fur articles motor boats
and yachts, portable electric fans
ard works Of arts agreed upon by
tn house We're dlsapproved by the
committee which voted to continue
the present rate Of 10 per cent. IL
each case.
The section of the house bill re-
ducing the tax on candy from
per cent to per cent, was amend
ed to provide that candy sold at
wholesale for more than 40 cents
a pound should bear q tax Of ~
per cent.
In accepting the house reduction
from 10 per cent. to 5 per cent. in
the tax on sporting goods, the COM
nittee decided to make taxable
skates. snow shoes, skis, tobog5ans
and baseball and football and bas-
ke1ball equipment which We're
eliminated by the house.
Under new section added to the
house bill, the committee proposed
th%t the tax on chewing gum be
reduced from 3 per cent. to ? per
cent. The house measure made no
change in this levy.
The house provision repeating all
! of the so-called luxury taxes was
accepted, but the committee defer
rea action on the proposal to i'm
/, pose manufacturers tax on a
number of articles on which a re-
tai tax is now imposed.
Sections Of the house bin ac-
cepted without change included
those relating to taxes on cereal
beverages and soft drinks; repeal
! f1lg the tax on eyeglasses and
spactacles, eliminating the license
lesries on yachts and motor boats OF
no, more than five tons or not over
! 32' feet in length and imposing a
! tax Of 10 per cent OF camera lenses.
The beverage tax changes were ac-
cented, however, subject to pos
! sirie amendment after further in
| formation on this subject had been
furnished by treasury experts.
While the senate committee was
revising the house measures, repre-
sentatives OF manufacturing inter
ests in conference here decided to
support and work for revision
program substantially the same as
that which Senator Smoot Of
! Utah. a Republican member OF the
finance committee, has announced
he will offer as a substitute for the
pending measure. The main fea-
tu"as of the program are:
Enactment Of new general
manufacturers tax.
Retention of present income
taxes on individual with revision Of
surtaxes.
Retention OF the present income
/ tax of 10 per cent. on corporations.
Retention of existing taxes On to-
bacco, narcotics and oleomargar.ne.
Retention OF existing inheritance
taxes.
Spokesman for the manufacture
ers explained that the proposed
/ manufacturers tax was not a gen
eral sales tax, inasmuch as it would
! be levied, assessed, collected and
pad upon every commodity man
ufactured. produced or imported.
when sold, leased or licensed for
consumption or use without fur
II y process O. manufacture.
rhe rate Of the proposed man
ufacturers' tax was not agreed up
or. but it was stated that discus
sion revolved around a maximum
! of 3 per cent.
Action Of the senate committee
today in voting 10 recommend re-
81 ration Of the transportation tax
! ess and changes in other proposed
/ excise levies was taken despite as
surance from Secretary Mellon and
Director Of the budget Dawes that
! thu $3.50. 100000 reduction in eX-
: DC lses agreed upon at the White
: House conference last month would
be effected Senator's said they
wanted q wider margin between
government incomes and outSo
thar would be. provided If the house
changes in the present law had
! been accepted.
Revised estimates as to savings
promised by the several depart
ments for this fiscal year We're
/ submitted to the omlnittee by pi-
rector Dawes. the indicated Savinss
J being reduced from $350,000, coo
] TO $305. 100000.
Under the revised estimates the
war department would spend $780,
0GG, coo this fiscal year. the ship
/. ping board 10o.00G.o00 and the
on. 20 for the railroads would be
$+a6 .000. .o0o No estimate was
made OF reduction for the navy