Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-09-15

TAXES PUT BACK
IN HOUSE BILL
Those for Freight, Passenger
and Freight ACCommoda-
tons to Be in Force at Half
Present Rates.
(By The Associated Press.l

washington, Sept. IA. - Many
house proposals for tax changes
were rejected or sharply modified
today by the senate finance COM
mittee. Probably the most far
reaching decision was that 10 re-
store all transportation taxes, but
with those on freight, passenger
and Pullman accommodation In
force only for 1922 and at half the
present rates. The house bill pro-
vided for repeal of all these levies
next January l.
While agreeing to the house plan
to repeal stamp taxes on perfumes.
cosmetics, toilet preparations and
proprietary medicines, the commit
tee voted to impose manufactur-
er's tax of 4 per cent on toilet ar
ticles and per cent on proprietary
medicines, and to restore the per
cent on toilet soaps and powders
which the house bill proposed to
repeal.
Five per cent reductions on fur
articles, motor boats and yachts,
portable electric fans and works of
art, agreed on by the house, were
disapproved by the committee,
which voted to continue the 10 per
cent rate.
The action reducing the tax on
candy from to 3 per cent was
amended to provide that candy
sold at wholesale for more than 40
cents a pound should bear tax OF
10 per cent.
In accepting the house reduction
from 10 to per cent in the tax on
sporting goods, the committee dc
c ded to make taxable skates. snow
shoes, skis and toboggan and base
tall, football and basket ball equip.
rent which were eliminated by the
previous bill.
Under a section the committee
proposed that the tax on chewing
gum be reduced from 3 to 2 per
cent.
The house provision repeating all
luxury taxes was accepted, but the
committee deferred action on the
proposal to impose manufacture
e,'s tax on a number of the articles
on which a retail tax is now ira.
ppSeu.
Sections Accepted.
Sections accepted without change
included those relating to taxes o.,
cereal beverages and soft drinks;
repeating thse tax on eye glasses
and spectacles; eliminating the IL
cense levies on yachts and motor
boats of not more than five tons or
not over 80 feet in length, and i'm,
posing a tax of 10 per cent on cam
era lenses. The beverage tax
changes were accepted, however,
subject to possible amendment al
ter further information has been
furnished by treasury experts.
Want New Program.
While the senate comm Ittee was
revising the house measure, repre-
sentatives of manufacturing inter-
ests in conference decided to work
for a tax revision program substan-
TALLY the same as that which Send
tor Smoot of Utah, republican
member of the finance committee
has announced he will offer as u
substitute for the pending measure
The main features of this program
are:
Enactment of new genera
manufacturers tax.
Retention of present income
taxes on individuals, with revision
of surtaxes.
Retention of the income tax OF
10 per cent on corporations.
| Retention of taxes on tobacco.
narcotics and oleomargarine.
Retention of existing inheritance
taxes.
Spokesman Explain.
Spokesman for the manufactur-
ers explained that the proposed
manufacturers tax was not a gen
eral sales tax, inasmuch as it would
/ be levied, assessed, collected and
paid on every commodity manufac-
tured, produced or imported, Whe7
sold, leased or licensed for con-
sumption or use without further
process of manufacture"
Action of the senate committee
| in voting to recommend restora-
ton of the transportation taxes
and changes In other proposed ex-
else levies was taken, despite assur-
ances from Secretary Mellon ana
Director of the Budget Dawes thai
the $3.50, 100000 reduction in gov
eminent expenditures agreed upon
at the White House conference
would be effected.
Revised estimates as to savings
promised by the several depart
ments for this fiscal year Were
submitted by Director Dawes, the
indicated savings being reduced
from $3.50, 100000 to s305,O00,O0o'
Under the revised estimates. me
war department would spend s39o''
100000. the shipping board sloo;;-
100000 and the outgo for the rail-
roads would be $456,O00.0OO.
No estimate was made of a re-
drction for the navy department
which Mr.. Dawes said was still un-