Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-09-14
REMOVAL OF TAX
. ON SODA FORECAST.
Senators to Decide Today on
Proposed Dropping Of Trans.
portation Levy
MAY REDUCE LIVING COST
BIZ a star Correspondent


Washington, Sept. 14.--Here are
some of the things the new revenue
bill does for the average man:
II he is married. II increases his in
come tax exemption on that account to
$500 instead of $4,000 as at present.
II he has dependent children or other
dependents. II allows him to deduct S4OO
for each dependent in computing his
taxable income. The present exemption
Is 5000.
BY repeating the excess profits tax,
thereby removing an excuse to pile up
prices to the ultimate consumer. Treas
ury experts say II will reduce the cost
of living
1t lowers the tax on baseball equip
ment and sporting goods.
These changes and notifications in
the present income tax law have been
agreed to by House and Senate revenue
trainers. They represent the visible
benefits accruing to the average citizen
from the Republican program Of revenue
revision.
Theatre Tax Stands
Against that showing. - here are some
of the things the new bill does not do:
It doesn't make IL any easier to fill
OUT an incomc-tax return nor remove
the penalties for failure to make a re-
trIn. whether your income is taxable
or not.
Tobacco and chewing gum taxes re
main the same.
1t doesn't repeal the tax on theatre
admissions.
1t doesn't repeal the tax on express
packages.
1t doesn't permit a travelling sales
man to deduct his living expenses while
on the road, in computing his taxable
income.
1t doesn't reduce the tax on candy.
Whether or not II will repeal the
tax, which piles up the
Is to be decided today
by the Finance Committee.
The House Revenue Bill as sent to
the Senate eliminates all transportation
taxes. The Finance Committee is de-
batting whether TO restore them. or, in
ether words, retain them as at present.
TEis will depend. 1t is said, on Treas
ury estimates of revenue from other
sources, to be submitted by the ac-
tuaries and experts today. The COM
mittee hopes to remove the passenger
and freight taxes.
Would Cut Luxury Levies
Another decision Is expected today
on the soda water tax. Senators on
the committee appear highly desirous
of removing this tax.
They are likewise strongly disposed
to remove or materially reduce the lux
ury taxes, making fewer items taxable.
II this tax Is eliminated or modified. as
appears likely, such items as silk socks.
shoes and the necessaries Of life will
not be taxable.
There will be no new taxes of any
kind imposed, If present agreements
stand. All proposals for sales tax.
a manufacturers tax, a tax on bank
checks, for three cent postage, and
similar innovations have been vetoed
both by the House and Senate.
1t is the consensus of opinion of the
fiscal authorities of Congress that all
sales tax proposals should be held In
reserve for consideration in connection
with the soldiers bonus, when that
comes up. The bonus bill is now safely
pigponholed in the Finance Committee,
and IS likely to remain there indefi-
nitely.
Sales Duty Shelved
Realizing it must be acted upon
eventually. however, members of the
Ways and Means and Finance Com
mittees prefer to shelve the sales tax
along with the bonus and consider them
together. on the theory that a blanket
bonus for ex-service men can only be
paid out Of the proceeds of a sales tax.
The following examples show how the
new income tax exemptions will work
out in the case OF man with an in
come of $1,000 or less:
Married, he will pay an income tax
Of 4 per cent only on that portion OF
his income over his S2500 exemption.
A married man with one child or
other dependent will pay only on that
portion Of his income over $1,000; with
two dependents, on his income over
$4,000 and so on.
Thus married man with three chill
dren and an income Of $4,000 year
or less will have no tax to pay. II
he has a wife and six children. all de-
pendent his exemption will total $4,000.