Evening star., 1921-09-18
HERE ARE TAX CHANCES o
PROPOSED BY SENATOR'S
Statement of Committee Experts Compares
Proposals With Bill as
Passed BY House.

Inc senate nnanCe cOIlHlitIee nav
ing practically completed it's draft Of
the tax revision bill, the important
changes made in the revenue law Of
1918 by the committee bill. and also
the changes made in the House bill by
the Senate committee. have been out
lined in a statement prepared by the
experts employed by the committee
This statement shows that the Senate
committee bill makes the following
changes in existing law and in the
House measure:
Repeal of the excess profits tax as
of January l. 1922. The bill as it
passed the House also provided for the
repeal of the excess profits tax as of
January 1. 1922.
The imposition of a Is per cent tax
upon corporate net income from and
after January l. 1922. The bill as 1t
passed the House provides IL per
cent tax upon corporate net income
from and after January l. 1922.
The repeal of the capital stock tax
as of July l, 1922. The bill as it passed
the House did not provide for the re-
peal of the capital stock tax.
Freight and Passenger Rates.
A reduction of one-half in the taxes
upon freight and passenger and Pull
man transportation for the calendar
year 1922 and the repeal of these
1t passed the House provided for the
repeal of the taxes upon freight. ex-
press, passengers. Pullman seats and
b".ths and staterooms and oil by the
pipe line on January l. 1922. The bill
restores the taxes stricken out by
the House bill upon express and oil
by pipe line.
Reduction of the maximum surtax
rate to 80 per cent, the same as pro-
posed in the bill as it passed the
surtax brackets proposed by the
House. The effect of the surtax re-
ductIon is to reduce the surtax pay
able by all taxpayers.
Increase in the personal exemption
CT married persons having a net in
come not m excess of $4,000 from So
900 to $4,000. the same as proposed
by the House.
Exemption for Children.
The increase of the exemption for
children and, dependents from 5000
to $500. as proposed by the House.
The repeal of the retail sales taxes
upon proprietary medicines. perfumes
and cosmetics and the imposition of a
per cent sales tax upon the manu-
facturers' selling price Of perfumes.
cosmetics and similar articles The
House bill did not impose a manufac-
turers' sales tax upon perfumes. cos
metics and similar articles.
The reduction of the tax on sporting
goods from 10 to per cent. The
House reduced the rate to per cent
and excepted the following articles
from taxation: Skates. snowshoes.
skis. toboggans. base ball bats, gloves.
masks. protectors. shoes. and uniforms,
foot ball helmets. harness and goals.
basket ball goals and uniforms, base
balls and foot balls. The finance COM
mittee recommends the retention of
the per cent rate on the articles
stricken out by the House.
The reduction of the rate of 3 per
cent on chewing gum to 2 per cent
The House bill did not reduce the
rate on chewing gum.
Rates ON Candy.
The reduction of the per cent
rate on candy to per cent in the
case of candy selling at 40 cents per
pound and less and the increase Of
the per cent rate to 10 per cent in
the case of candy selling for more
than 40 cents per pound. The House
reduced the rate upon all candy to
3 per cent
Ihe restoration OF the per cent
rate imposed under existing law upon
portable electric fans. The House
repealed this provision.
The restoration of the 10 per cent
rate imposed under existing law upon
articles made Of fur. The House bill
reduced the rate to 5 per cent and
excepted certain of the cheaper fur
articles from tax.
The restoration of the 10 per cent
rate imposed under existing law upon
yachts and motor boats. The House
reduced the rate to per cent.
Repeal of Insurance Tax.
Repeal of the policy taxes upon
life insurance and the premium taxes
of other insurance companies on jan
uary l, 1922. The House bill also re-
pealed these taxes on January 1, 1922.
The imposition of a Is per cent tax
upon the investment income of life
insurance companies from January
1. 1921. The House bill imposed a
tax of 12R per cent upon the invest
mcnt income of all insurance COM
panies. such rate to become effective
January 1. 1922. The finance commit
tee recommends that the present pol
icy of income taxation in the case
SPECIAL NOTICES.