New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-14
License Charge of $40 on
Beverage Vendors and
Repeal of Transporta.
ton Toll Decided JJnon
3 Billion Revenue
Now Is Assured
Goes to House Tomorrow
and Vote Is Expected To
Be Taken ON Saturday

WASHINGTON, Aug. 13.-Revision
of the 1918 tax law was completed to-
day by Republican members of the
House Ways and Means Committee
with the adoption Of these additional
changes:
Repeal of the express and oil pipe
line transportation taxes, effective Jan
rary 1, 1922.
Imposition Of license tax of $40 on
venders of soft drinks, effective upon
enactment Of the bill.
Substitution of a manufacturers tax
of IL cents a gallon on cereal bevcr-
ages (near beer) for the present levy
Of Is per cent, effective upon enact
ment of the bill.
Imposition of per cent tax on the
full manufacturers selling price of the
following articles if sold by the manu-
facturers at levels in excess of those
specifed:
Carpets and rugs, $3.50 q square
yard; trunks, $50 each; valises, travel
lio DdS quiz CdScS, u4t DONcS uScN
by travellers and fitted toilet cases, Sic
each; purses, pocketbooks, shopping
and hand bags, 81 each; portable light
ing fixtures, including lamps Of al
kinds and shades, $40 each; fans, 81
each, and house or smoking coats OF
jack cts and bath or lounging robes, So
each.
These taxes also would become eff
fective upon enactment of the bill.
S300,O00,00O Back Taxes
Announcing completion of their
work, members of the committee said
they believed the bill as agreed upon
would produce the S3,O00,OO0 total
which Secretary Mellon estimated at
the White House tax conference last
Tuesday it would be necessary to raise
from internal revenue next year. Not
all of this sum would be collected on
total includes $300.000 900 which Treas
ury officials estimate can be collected
on back taxes.
The hill AS finally drafted by the
committee will be presented to the
House Monday, under present plans of
Republican leaders, and will be passed
next Saturday, after two days Of gen
eral debate and two days considera-
ion of amendments under the five
n.Anute rule. From the House it will
go to tn, Sena :. where the Finance
Committee Will consider it during the
proposed Congressional recess with a
view to reporting it to the Senate when
Congress reconvenes, probably late in
September
With the removal Of the express and
oil pipe lines taxes the committee elm
mated all OF the transportation taxes
No change was made, however, in the
levies on telegraph, telephone. cables
and radio messages, this section of the
old law remaining in force.
The manufacturers tax of 5 per cent
on carpets, trunks and other articles is
designed to reduce the so-caled lux
ury levies now in force, including those
on wearing apparel, but the plan now
is to continue these taxes, collected and
paid to the government by the retail
ers, until next January |, despite the
fect that the manufacturers tax would
become effective upor enactment Of the
bill.
New License Tax
The license tax on venders of soft
drinks is a new levy, exclusive of the
manufacturers tax on syrups used at
fountains and on unfermented bever-
ages, carbonated waters or beverages
or other soft drinks sold in containers.
Beside the changes agreed upon to-
day, the bill as it will be presented
to the conference of House Republic
cans Monday will contain, members
said, these provisions:
Repeal of the excess profits tax and
an increase in the income tax on cor
poratons from 10 to Is per cent, with
the $1,000 exemption retained, effective
January ], 1921.
Repeal of the income surtax brack-
cts above 32 per cent, effective January
/, 1921.
Repeal of all forms of transporta-
tion taxes, effective January /, 1922
An increase from $4,000 to $1,000 in
the exemption to married men having
an annual net income of $4,000 or less,
effective January I, 1921.
An increase in the exemption to
heads of families on account of de-
pendents to $400 for each dependent,
instead Of 5000 as at present, effective
January /, 1921.
Exemption from tax of the first $500
of income received by individuals from
Continued ON next naeo)