The New York herald., 1921-08-19
HOUSE TO CONSIDER
LATE TAX CHANGES
Ways and Means Committee
Agrees on Several to Pre-
sent Before Final Vote.

WASHINGTON, Aug. ls.--Many amend
ments to the Republican tax Dill VII be
offered on behalf OF the majority mem.
bers OF the Ways and Means Commit
tee before the House takes final vote
on the measure late Saturday. Several
changes were agreed upon to-day by the
Republican Committeeman and upward
or half a hundred others wilt be constd-
cred early tomorrow before the bill Is
taken up in the House for amendment.
One change voted to-day by the com-
mittee was elimination of the proposed
annual license tax of $40 on vepders Of
sort drinks. Under another alteration
individual taxpayers would pay 12h per
cent. on profits from the sale of capital
assets IL such profits and the taxpayers
net normal income exceeded $4,000. I'M
der the bill before the House they would
be required to pay Is per cent. on the
excess over $4,000.
1t also was decided tentatively to tx-
empt from taxation the Government al
lowances received by veterans of the
civil and Spanish American wars or
their beneficiaries as we'll as those re-
ceived by individuals under the war
risk and vocational rehabilitation arts,
Other amendments known to be under
consideration would cxcmrt llanufac-
turcrs Of tooth paste and powder from
the tax on toilet preparations and would
define as foreign trade corporations
business organizations which derive so
per cent. of their income from sources
without the United States The figure
In the bill is so per cent. This class OF
income would not be taxable.
There Is q movement before the COM
mittee to propose creation of special
commission to devise some form Of plan
by which incomes derived from tax
exempt securities can be taxed.
General debate on the tax bill ended
tonight. Principal speakers for the
Democrats We're Representatives. Old
field (Ark.) and Cochran IN. W and
for the Republicans Representatives
Green (Iowa) and Longworth (Ohfo).
members OF the Ways and Means Com
mittee.
Mr.. Cochran attacked not only the
bill itself but the rule under which the
Democrats claim they will be cut off
from offering any amendments to the
bill.
Using Treasury estimates to support
his argument that the tax bill would re-
suit in huge Government deficit at the
end of this fiscal year. Mr.. Cochran de-
clared that il the Treasury went into
the market for $1,000. 100000 of money
to help pay ordinary expenses of tho
Government there would be panic.
Reading official statements by former
President Wilson and former Democratic
Secretaries of the Treasury urging re-
peal of the excess profits tax. Repre-
sentative Longworth told the Demo-
Gratis that in opposing this repeal they
were '.repudiating the Democratic plat
form"
''You are getting your orders by tele-
graph from Scotland Neck" Mr.. Long
worth said, referring to Majority Leader
Kitchins despatch to the Democratic
caucus. urging solid Democratic opposi-
tion to the bill. II think the majority
of my party made a mistake In deferring
to January ! next the repeal of the
higher surtaxes and excess profits tax.
but acquiesce. These two taxes are
the greatest shackles we have on busi-
ness and industry and the greatest bur-
dens on both producer and consumer"
Representative Woodruff mich. J, Re-
publican, announced that he would OPP
pose the bill, while another Republican.
Representative John NJ. Nelson (Wia)
spoke against 1t,