Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-18
Minority Report May Be Off,
Observation-Disclosures and
SurtaXes Reduced by the
Committee

WASHINGTON, Aug. lo.-lne AZ
titude of the Democratic minority
of the house toward the administra-
ton tax revision bill, which was in
troduced late yesterday, was to be de-
termined late today at a party eau
Gus. Decision to have the Democrats
on the ways and means committee
file a minority report on the meas
ure was forecast by some leaders.
Meantime, the committee, with the
Democratic members present, was 10
pass formally on the bill as amend
ed as a result of the action yester-
day Of the Republican conference,
which voted, IS to 81, to postpone re-
peal of the excess profits tax and
higher income Surtax rates until next
January 1 and to put off until the
same date the proposed increase in
the corporation income tax.
After the conference action and be-
fore Chairman Fordney presented the
bill in the house, majority members
Of the ways and means committee
decided to reduce the amount of the
corporation income tax increase from
five per cent to 2 IL per cent, the
figure originally agreed upon at the
ago and to cut in half the proposed
manufacturer tax Of twelve cents
a gallon on cereal beverages.
The charges made in the original
committee draft were estimated by
some Republicans to increase by
5000, 100000 the $3,00O,00O,OoO yield
which it had been figured would be
returned under the bill as drafted by
the majority committeeman.
The program agreed upon by the
Republican conference yesterday for
house consideration of the bill, call
ed for the adoption of a special rule
limiting debate to four days from IL
a. m. Wednesday and fixing 3 p. m.
saturday as the time for the final
vote.
Refuse 90 Bepeal
Republicans of the house refused
Monday to approve the administra-
ton plan to make repeal of the
excess profit and the reduction Of
the income surtaxes to 80 per cent
retroactive to last January 1. Under
ebangee eonferen %e decision is. these
cent increase in the corporal ton in
come tax, would go into force next
January 1.
The vote to make the change in
the committee bill was Sc to 81.
No other alteration in the draft as
presented to the conference was
made. The membership also adopted
special rule under which the vote
on the bill will be taken at p. m.
Saturday.
Representative Frear, Wisconsin,
a member of the ways and means
committee, wanted a separate vote
in the house on fixing the date for
a repeal Of the excessive profits
tax, but the conference on motion
of Representative Mann. Illinois, de-
1922. ~ 1- -
Under amendments subsequently
adopted by the committee, the in
crease in the corporation income
- t.
1, was reduced from to 2 IL per
cent, and the tax on cereal bever-
ages cut from Is cents to six cents
a gallon.
Republican leaders estimate that
the bill will reduce the nations tax
calendar year through repeal of the
excess profits tax, the higher brack-
cts Of income surtaXeS, all of the
transportation taxes, including ex-
press and oil pipe line, increased ex-
emptions to heads Of families and
married men with small incomes,
and decreases in the 1evies on candy,
sporting goods, furs and art, and art
works.
Details of these and other changes,
including the increase Of 5 per cent
in the income tax on corporations al
ready have been published. Other
revisions include. however, the eX-
emption from taxation OF the COM
pensation received by the President
of the United States and amounts re-
ceived as compensation, family allot-
ments and allowances under pro
visions of the war risk. insurance
and vocational rehabilitation acts.
Justices of the supreme court
and all federal court judges also
are completely exempted from in
come taxation by the new tax bill.
This was one Of the new provisions,
revealed when the complete text Of
the bin was obtained. 1t is partly
in accordance with the supreme
court decision that the salaries of
the executive and the federal judi
their terms in office by the pay
ment of income taxes. Other changes,
heretofore not made public were:
Other Rates
Increase of non-beVerage distilled
spirits tax from 1920 to $6.4O a
other products, is used for bever-
age purposes. This means increased
taxes for the makers Of the patent
medicines, containing alcohol, and
heavier taxes on boot9eggers when
the latter are caught.
of cents for each 100 was repeal
ed and the corporation income tax
made applicable to insurance COM
panies.
An additional tax of 25 per cent
Is placed on accumulated profits of
corporations, which are held to en-
able stockholders to escape the sur
taxes.
A flat tax Of Is per cent is placed
on the sale Of capital assets, when
the profits obtained exceed Is per
cent.
An important change to the bust
ness world is that in case a net
loss is sustained in any year the