The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-08-16
REVISED ESTIMATES
PLACE REDUCTIONS
AT $35O,OOO,OOO.
Against $3.50, 100000 Planned by
the Committee Republi-
cans Heretofore.
FINAL VOTE ON BILL
TO BE HELD SATURDAY
Two Days Will Be Given to De-
bate and Two Days to Con-
sideratiOn Amendments.
(ny The AssocIated Press)

(by The AsSocIateo FresSl
WASHINGTON, Aug 1.-THE admin.
istration tax revision bill was laid before
the house of representatives today after
the republican membership of that body
in conference had changed 1t so as tc
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 1.
This change, on the basis OF previous
treasury estimates, would result in the
corporations and individuals with large
incomes paying to the government in the
next calendar year something like 5000,
600. 900 more than they would have paid
had the administration plan OF making
the repeais retroactive prevailed.
Total tax reductions for this fiscal year
under the bill as revised were estimated
by some majority members of the ways
and means committee at $3.50. .000.0 as
against approximately $3.50, ,000, 900 planned
by committee republicans and the total
tax yield at about $4,000 600, 000 AS a
result OF the changes made by the repub-
lcan conference. majority committee
members further amended the bill before
its presentation in the house so as to
make tho corporation income tax twelve
and one-half per cent. after next January
:. instead of Is per cent as originally
planned. and the manufacturers tax on
cereal beverages six cents a gallon in
stead OF twelve cents.
Under plans adopted by the party con-
ference. the bin will be taken up in the
house at IL a. m. Wednesday under
special rule calling for a final vote at
3 p m. Saturday Two days will be given
over to general debate and two days to
consideration OF amendments under the
five minute rule, with aEneFfdinehts of
committee members given preference
Democratic members OF the house plan
to hold q caucus tomorrow afternoon to
decide upon a course of action while the
measure Is under consideration. They
also are expected to determine whether
democrats on the ways and means COM
mittee shall file minority report. Mean
time the fun committee will meet to pass
finally upon the bill, but this is expected
TO be n mere formality.
The republican conference lasted sew
eral hours with western members leading
the fight to reject the plan for retroac-
tive repeal Of the excess profits and higher
income surtax rates which was agreed
upon at the White House tax conference
last Tuesday.
These changes in the repeal dates car
ried with them delay until next January
] in the proposed increase of five per
cent in corporation income taxes No
change In this figure was made by tho
conference, but the committee members
decided TO cut IL in half, as it was con-
tended that five per cent increase would
be unnecessary II the excess profits and
higher surtaXes were imposed for this
taxable year.
Personal service corporations freed by
the supreme court from corporation taxes.
would be brought specifically under the
corporation income tax by the billG pro-
vision is made that n the partnership tax
OF the 1918 act on Individual stockholders
OF such corporations should be declared
invalid there shall, in addition to all
other taxes. be levied. collected and paid
on the net income received during the
calendar years 1918, 1918 and 1920. by
every personal service corporation" a
tax equal to the taxes imposed under the
excess profits and income surtax provis-
ions OF the present law.
Exemption from taxation would be
granted 10 farmers cooperative purchas-
ia9 organizations as well as to selling or
ganixations where the materials purchased
are turned over to members of the or
ganisatlons "at actual cost plus neces-
sary expenses
=. Distilled spirits diverted to beverage
4urposes or in the manufacture OF any
article intended for beverage use would
be taxed at the rate of 1920 gallon, the
tax to be paid by the persons responsible
for such diversion.
Under an amendmei.t to the estate tax
sections OF the present law amounts re-
ceivable as insurance upon the life cs a
nonresident descendent and any moneys
deposited in any bank. banking institu-
tion or trust company in the United
states, by or for a nonresident dece-
dent who was not engaged in business
In the United States at the time OF his
death would be exempt from taxation.
Other revisions provide that no arnuse-
ment tax shall be levied on admissions,
all the proceeds of which insure exclusive
" TO the benefit OF persons in the military
and have served in such forces and are
in needs that the jewelers. tax OF five per
cent on eyeglasses and spectaAes and
the manufacturers tax OF five per cent
on portable electric fans shall be repealed
and that tax of 10 per cent shall be
imposed on lenses for cameras weighing
not more than 100 pounds
= Some OF the new administrative fea-
lures In the bin are designed to speed up
settlement of claims involving back taxes
estimated TO total sl,500 00o. 900. The
time for determination and final assess
ment of any tax due under the new bill
would be three months after the return
was returned instead Of five as at present
Continued on Page Two)