The New York herald., 1921-09-15
SENATE COMMITTEE
KEEPS RAIL TAXES
Leyies to Be in Force Only for
1922, and at Half Present
Rates.

proposals Tor tax changes were rejected
or sharply modified to-day by the Sem
ate Finance Committee. Probably the
most far reaching decision OF the COM
mfttee was that to restore all transpor-
tation taxes. but with those on freight.
passenger and Pullman accommodations
in force only for 1922 and at half the
present rates. The House bill provided
for repeal of all of these levies on jan
uary next.
While agreeing to the House plan to
repeal State taxes on perfumes, cos
metics. toilet preparations and pro-
prietary medicines, the committee voted
to impose manufacturers tax of four
per cent. on toilet articles and two per
cent. tax on toilet soaps and powders
which the House bill proposed to repeal.
/ Five per cent. reductions In the taxes
on fur articles. motor boats and yachts.
portable electric fans and works of art
agreed upon by the House were disap-
proved by the committee, which voted to
continue the present rate of ten per
cent. in each case.
/ The section of the House bill reducing
the tax on candy from five per cent. to
three per cent. was amended to provide
that candy sold at wholesale for more
than forty cents a pound should bear
tax Of ten per cent.
In accepting the House reduction from
10 per cent. to per cent. in the tax on
sporting goods. the committee decided
to make taxable skates. snow shoes,
skis. toboggans, and baseball. football
and basketball equipment. which were
eliminated by the House.
Under a new section added to the
House bill, the committee proposed that
10 To ri n
from per cent to per cent The
House measure made no change in this
levy.
!. The House provision repeating all of
the luxury taxes was accepted, but the
committee deferred action on the pro-
posai to impose a manufacturers tax
on a number Of the articles on which
a retail tax Is now imposed.
/ Sections of the House bill accepted
| without change included those relating
to taxes on cereal beverages and soft
drinks: repeating the tax on eyeglasses
and spectacles; eliminating the license
levies on yachts and motor boats of
not more than five tons or not exceeding
thirty-two feet in length. and imposing
a tax Of 10 per cent. on camera lenses
The beverage tax changes were ac-
cepted, however. subject to possible
amendment after further Information on
this subject has been furnished by
Treasury experts.
Action of the Senate committee to-day
in voting to recommend restoration OF
the transportation taxes and changes In
other proposed excise lcvles was taken
despite assurances from Secretary Mel
Ion and Director of the Budget Dawes
that the S350.000, 900 reduction in Gov
ernment expenditures agreed upon at
the White House conference last month
v<...fI l. rFF 4AI t-~ n 49,
wanted wider margin between Govern
ment income and outgo than would be
provided IL the House changes in the
present law had been accepted
Revised estimates as to savings prom
ised by the several departments for this
fiscal year were submitted to the com
mittee by Director Dawes, the indicated
savings being reduced from $3.50. 200, 900
to $305, ,000.000.
Under the revised estimates the War
Department would spend $500. 0.000.0 900
this fiscal year. the Shipping Board
500 100000 and the outgo for the rail-
roads would be s456. .000, 900.
While the Senate committee was re-
vising the House measure. representa-
tives of manufacturing interests In con
ference here decided to support and
work for tax revision programme
substantially the same as that which
Senator Smoot, of Utah. Republican
member of the Finance Committee, has
announced he will offer as q substitute
for the pending measure. The main
features OF the programme are:
Enactment OF new general manu-
facturers' tax:
Retention of present income taxes on
individuals with revision of surtaxes:
Retention of the present income tax
OF 10 per cent. on corporations;
Retention OF existing taxes on tobacco.
narcotics and oleomargarine, ard.
Retention Of existing Inheritance
taxes. hse
Spokesmen for the manufacturers ex-
plained that the proposed manu-
facturers' tax was not general sales
tax. inasmuch as 1t. would be LEVIED,
assessed, collected and paid upon every
commodity manufactured. produced or
imported. when sold. leased or licensed
for consumption or use without further
process Of manufacture"