Arizona republican., 1921-09-15
HOUSE TAX BILL
 |. MUCH MOD|F FED | BY. C0MMFT TEE
Senate Restores frsnspor- tation Levies Until Next Year = Many Changes Made In Measure-Ac- cept Repeal of Luxury Tax
kSsrsiSTD SDs '
IRepubIlcan A. P. Leased Wlrel

W ON, Stpl. house proposals for tax changes were rejected or sharply modified today by the senate finance committee. Prob ably the most far reaching decision was that to restore all transportation taxes, but with those on freight, pas senger and Pullman accommodations in force only for 1922 and at half the present rates. The house bill pro- vided for repeal of all these levies next Jan. l.
 While agreeing to the house plan to repeal stamp taxes on perfumes. cosmetics, toilet preparations and proprietary medicines, the committee voted to impose a manufacturers tax of four per cent on toilet articles and two per cent on proprietary medi cines and to restore the three per cent on toilet soaps and powder which the house bill proposed to re- peal.
 Five per cent reductions on fur ar ticles, motor boats and yachts, DOT table electric fans and work of art agreed on by the house were dis approved by the committee, which voted to continue the ten per cent rate.
 The section reducing the tax on candy from five<to three. per cent was amended to provide that candy sold at wholesale for more than 40 cents pound should bear tax of 10 per cent.
 Tax On Sporting Goods
 In accepting the house reduction from 10 to five per cent on the tax on sporting goods, the committee decided to make taxable skates, SHOW shoes, skis and toboggan and base ball, football and basketball equip ment which were eliminated by the provisions.
 Under a new section. the committee provided that the tax on chewing gum be reduced from three to two per cent.
 The house provision repeating all luxury taxes was accepted, but the committee deferred action on the proposal to impose a manufacturers tax on a number of the articles on which a retail tax is now imposed Sections accepted without change | included those relating to taxes or cereal beverages and soft drinks; re- i pealing the tax on eye glasses and 1 spectacles. eliminating the license ] ievies on yachts and motor boats ol 1 not more than five tons or not ovei I 32 feet in length, and imposing tax | of 10 per cent on camera lenses. Tho | beverage tax changes were accepted i however. subject to possible amend ment after further information ha. 1 been furnished by treasury experts.
 Decide On Revision Program While the senate committee wa. revising the house measure. repre- l sentatives of manufacturing interest," l in conference decided to work for { tax revision program substantial, | the same as that which Senator Shoot. of Utah, republican nembel l of the finance committee, has an | nounced he will offer as a substitut' i for the pending measure. The mair features of this program are:
 Enactment of a new general manu l facturers' tax;
 on individuals, with revision of sur l taxes;
 Retention of the income tax of l per cent on corporations: Retention of taxes on tobacco, mar cotics and oleomargarine, and; Retention of existing inheritanc | taxes.
 T Spokesmen for the manufacturer
 explained that the proposed manufac
 turers' tax was not a general sale
 tax, inasmuch as it would be ''levied
 assessed, collected and paid on ever
 commodity manufactured, produce
 or imported, when sold, leased or Ii
 censed for consumption or use with
 out further process of manufacture. "
 Plan $35o,o0o, 900 Saving
 Action of the senate committee i
 voting to recommend restoration O the transportation taxes and change
 in other proposed excise levies wa taken despite assurances from Secre
 tary Mellon and Director of tn Budget Dawes that. the s350,000,00 reduction in govefnment ,expendi lures agreed upon at the Whit
 House conference would be effected Revised estimates as to saving promised by the several department for this fiscal year were submitte by Director Dawes. the indicated say ings being reduced from sS50,000,00 ! to s305, ,000, 900.
 Under the revised estimates tn war department would spend S390, 100000, the shipping board sf00,O00.
 900, and the outgo for the railroad
 would be 456,000. 900.
 No estimate was made of a reduc
 ton for the navy department whic
 Mir. Dawes said was still under ad
 visement.