The Columbia evening Missourian. [volume] (Columbia, Mo.) 1920-1923, 1921-11-10
REVISED TAX
BILL PASSED
In THE SENATE
Conferees Still to Consider
Proposed Act Before 1t
Goes TO President
Harding.
UNCLE SAM WILL LOSE
Legislative Branches Agree on
Three Main Features-An
Increase on Liquor
Assessments.
UNCLE SAM WILL LOSE


tax bill has passed the senate. 1t ha
sill the Senate. and the House confer
enccs TO pass before ii goes 10 the Pre-.
ident.
As the bill now stands, i, is estimate
by treasury experts that it will yield az
proximaiely three and three -fourths BIZ
lions of dollars for the fiscal year end
ing next June This amount will be 20
million dollars less than the existing Law
il all the changes proposed become el
feCtive however, til measure ultimatel
will reduce the nations tax bill by abou
three! -!ourihs billions of dollars.
There is complete agreement in tn
two Legislative branches concerning thre
features of the bill which are: the nor
NAL tax on individual incomes; repea
Of the transportation taxes January !
1922; and repeal Of the excess profit.
taxes January |. 1922.
The paris Of the bill which involve dis
agreement between the Two houses ar,
the reduction Of higher suriaxes on in
romes. The house proposed maximum
snraxes of 80 per cent, and the Senate
because Of the bipartisan condition. rails
ed the maximum rate to so per cent. The
surtax on :n:oiEcs at the present time is
65 per cent. 1t is possible that an ar.
biiray figure Of 40 per cent will be set
The House proposed an increase in the
corporation stock tax from 10 per cen,
10 IL l-2 per cent. The Senate wanted
10 raise ii TO ID per cent.
ANALYSIS MADE
An analysis OF the bill made by treas
my experts was as follows:
1T will yield three and three-fourihs
billions Of dollars during the first year of
ITS operation and 2,725 millions of dol
Jars during the ensuing yesr. The exist
ing law that II will displace would bring
in 3.d6O millions Of dollars next year.
Although the excess profits tax is re-
pealed January ]. that tax will yield 600
millions Of dollars during the calendar
year Of 1921
elimination Of the Transportation tax
will mean loss of approximately so
millions Of dollars annually
"The income taxes will yield about $50
millions OF dollars year.
"if the senaies proposal for a Is per
cent corporation tax stands this will
yield $50 millions Of dollars a year. In.
creased inheritance taxes are estimated
TO yield $50 millions Of dollars.
Under the present law. a married man
withou, dependents. having an income
of s3OOO A wear navs San ;ncor. ,,x
Under the new bill he will pay $40. II his
income is $4,000 year, he now pays $50
tax. Under the new law he would pay
$50 tax, and so on according to his in
come.
INHERITANCE TAX UNCHANGED
Both the Senate and the House would
leave the inheritance taxes as they are,
except that the Senate measure increases
10 'o pr cent the tax on bequests OF es-
tates oil loo million dollars or more. This
MAXIMUM tax would apply 10 but few
'nheri'ances and is negligible as reve.
".s p'o'''
Inc greatest difference existing be.
tween Inc TWO houses, and one that has
10 De settled IN conference, is the one
having 10 DO with the higher maximum
surtaxes. Inc senate finance committee
originally agreed 10 the 32 per cent
maximum oil the house bill, but under the
COMPROMISE forced by the agricultural
pioc Inc senate raised the figure TO 81
per cent.
IL Inc lax revision bill becomes law
IL VIII repeal the tax on parcel post pack
ages proprietary medicines, toilet soaps
anu 'oiiet soap powders, tooth paste,
anl .a,..,l ~ M 'oiie' po"ueis
,nrs;a.I ;.S,.,,, ~ p''"'' anu o'ie'
'
Inc so-caiied luxury tax will be re-
moved from such articles as umbrellas,
paras9is' sun shaaes' picture frames and
various articles Oh wearing apparel cost
ing IN excess oil certain amounts.