The Washington herald., 1921-09-15
Senate Committee Favors
90 Complete Repeal on
Jan. 1, 1923.
PASSENGER LEVY
FOUR PER CENT
Manufacturers, Meeting
Here, Indorse Smoot
Bill Proposals.

Retention of freight and pas
senger transportation taxes at half
their rates and those on express
shipments and oil pipe lines at their
present rates for another year and
continuation OF many miscellaneous
peal were agreed upon by the Sem
ate Finance Committee yesterday
as 1t neared the end of the work or
revising the House revenue bill.
The House bill would repeal the
freight tax of 3 per cent and the
passenger tax Of s per cent, effective
January 1. 1922. The Finance Com
Inittee voted to recommend that
they be nxed at III per cent on
freight and 4 per cent on passenger
transportation from January 1, 1922,
until January 1, 1929. when they
shall be wholly repealed.
would Retain Fur Tax.
other decisions arrived at by the
Finance Committee today included:
Disagreed to House reduction Of
tar on fur articles from 10 to 5 per
cetn and recommended that present
rate be continued.
Recommended that tax on chew
ing gum be reduced from to per
cent.
Restored rate of 5 per cent on
portable electric fans.
Disagreed to House section re-
pealing tax on football. baseball.
basketball and other Stnletic goods.
and recommended nat rate of 10 per
cent on golf. football a nd certain
other sporting goods. The Senate
committee would tax them all alike.
Recommended tax Of , per cent or
candy up to 40 cents per pounG.
wholesale price. and 10 per cent
above that price. House Dill taxes
all candy at . per cent.
Against Cut I'm Yacht Levy.
Disagreed to House provisions re-
ducing taxes on yachts and motor
boats from 10 to per cent. recon-
mending that-present rate be con-
tinued, but accepted House section
Cxempting from license tax boats
of less than five net tons carrying
capacity. or length Of 80 feet.
Recommended 8 per cent tax
on toilet soaps and powders. which
the House bill placed on the free
list.
Disagreed to House provision re-
ducing tax on works of art from
10 to per cent, recommending
continuation of present rate.
Recommended rate of per
cent on cosmetics and per cent
on proprietary medicines, both of
which are made tax free by the
House bill.
The committee accepted the House
provision that manufacturers taxes
are to be levied on the actual prices
charged whether wholesale or retail.
Approves Luxury Tax Repeal
The committee approved the House
repeal of the so-called luxury
taxes levied under section 904 Of
existing law, but passed over for
later consideration the manufactur-
ers' tax on certain articles men
toned in that section as a substi-
tute.. notably umbrellas, electric
fixtures. smoking jackets, and bath
robes, etc, not regarded as actual
necessarfes.
Unanimous Endorsement was
given the Smoot per cent man
ufacturers' sales tax bill at q con-
ference of fifty representatives Of
the country's manufacturing inter-
ests held here yesterday. Follow
ing the conference the delegation.
headed by J. E. Edgerton. of Nash
willie, president of the National
Manufacturers Association went to
the Capitol where they were infor-
rnally received by a half dozen Re-
publican members Of the Senate FL
nance Committee before whom they
laid their request for the substitu-
tion of the smoot bill for the House
revenue bill
smoot VIII Press Bill.
Following the conference. Senator
smoot said that when the time ar
rived for the Finance Committee to
vote upon recommendation of a tax
bgli to the Senate. he would offer
his bill as a substitute for the House
bill, and II his proposal was re-
jected in committee would renew
his motion before the Senate itself.
The 3 per cent rate, Smoot esti-
mates, would net the government
e. o0n mn O0O during the next wear