Omaha daily bee., 1921-08-16
Tax Plans
.Cha11gedBy
Committee
Repeal of Excess Profit
Levies to Become Effec.
tive Next Year Instead
Of Last January.
Vote on Bill Saturday

Washington, Aug. ls.--The ad
nlinistration tax revision bill was
laid before the house of representa-
tives today, after the republican
membership of that body in confer
cnce, had changed it so as to make
repeal of the excess profits tax and
the income surtax rates in excess OF
81 per cent effective next January ],
instead of last January |.
This change, on the basis of pre-
vious treasury estimates, would re-
suit in the corporations and indi-
viduals with large incomes paying to
the government in the next calen-
dar year something like 500 900, 900.
more than they would have paid had
the administration plan of making
the repeals retroactive prevailed.
Total tax reductions for the fiscal
year, under the bill as revised, were
estimated by some majority men,
bers of the ways and means commit
tee at $350,000,0O0. as against ap-
proxirpately $3.50, 100000 planned by
committee republicans, and the to-
tai tax yield at about $3,AVV,VUo,UUV,
Taxes Cut Down.
As a result of the changes made
by the republican conference, ma
jority committee members further
amended the bill before its presen-
tation in the house so as to make
the corporation income tax l2h per
cent after January | instead OF Is
per cent as originally planned, and
the manufacturers tax on cereal
beverages 6 cents = gallon instead
OF II cents.
Under plans adopted by the party
conference the bill will be taken up
in the house at II a. m. Wednesday
under a special rule calling Tor a
final vote at p. m. Saturday.
Democratic members of the house
plan to hold a caucus tomorrow att
ernoon to decide upon a course o.
action while the measure is under
consideration. They also are expect
ed to determine whether democrats
on the ways and means committee
shall file a minority report.
Meantime the full committee will
meet to pass finally upon the bill, but
this is expected to be mere formal
ity.
Westerners Lead Fight.
The republican conference lastet
several hours. with western mem tet; e;
leading the fight to reject the plat
| for retroactive repeal of the excess
profits and higher income surtas
rates, which was agreed upon at thl
White House tax conference las
Tuesday. Representative Frear o
Wisconsin, a member OF the ways
and means committee, was under
stood to have insisted that the hous.
pass on the effective date of the re
peals, but the conference finally
adopted. o6 to 81, a motion by Rep
| resentative Mann of Illinois, that ttt
repeal rate be next January /.
These charges carried with them
delay until January /, il, the pro-
posed increase of per cent in cor
poration income taxes. No change
in this figure was made by the con
ference. but the committee members
decided to cut it in half, as it was
contended that a S per cent increase
would be unnecessary if the excess
profits and the surtax were imposed
for this taxable year.
The tax measure as presented in
the house today, is a bill ITO reduce
and equalize taxation, to amend and
simplify the revenue act Of 1918, and
for other purposes" Much of its
10000 odd words are devoted to
amendments of the administrative
and defnitive sections of the pres
ent law which were drafted by the
experts with view of clearfyine
specific portions of the 1918 act and
| meeting situations arising from de.
cisions OF the supreme court.
Aside from the revisions OF the
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