Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-08-18
NATIONS TAX BILL
REDUCED BY MANY
MILLIONS BY BILL
New Administration Tax
Measure to Save Tax-Pay-
ers $790,330,000 Accord
ing to Chairman Fordney Of
Ways and Means Commit
tee.

Washington. Aug. 1G.-A reduc-
ton Of $79O,33O,OOO on the annual
tax bill of the nation will result from
the changes in the 1918 revenue act
embodied in the new administration
tax bill. Chairman Fordney of the
ways and means committee, declared
in majority report filed here today
with the house.
Washington. August 1G.-'rhe ad-
ministration tax revision bill was
laid before the house Of representa-
tives today after the Republican
membership Of that body, in confer
ence, had changed it so as to make
repeal Of the excess profits tax and
the income surtax rates in excess of
80 percent effective next January l,
instead of last January l.
| This change, on the basis Of pre-
viOus treasury estimates would re-
suit in the corporations and indi-
vfduals with large incomes paying to
the government in the next calendar
year something like 100000, 900
more than they would have paid had
the administration plan of making
the repeal retroactive prevailed.
| AS result of the changes made by
the Republican conference. majority
committee members further amend
ed the bill before it's presentation
in the house so as to make the cor
poration income tax 12h per cent
after next January 1, instead of Is
per cent as originally planned, and
the manufacturers tax on cereal
hpvnr1pQC tho
Of twelve cents
The tax measure as presented in
the house today is bill "to reduce
and equalize taxation, to amend and
simplify the revenue act of 1918, and
| for other purposes. Much of its
$4,000 odd words is devoted to
amendments of the administrative
and definitive sections of the present
law which were drafted by treasury
experts with a view of clarifying spe-
| cffic portions of the 1918 act and
meeting situations arising from de-
cisions Of the supreme court.
Aside from the revisions of the
! levy sections already referred to, the
bill proposes repeal of all of the
transportation taxes effective next
January /; increased exemptions to
head Of families and married men
having incomes less than $4,000;
decreases in the levies on candy.
sporting goods, furs and art and art
works; the substitution of manu-.
facturers' taxes for the so-called
nuisance and luxury levies and other
changes, details of which have been
given in previous Associated Press
dispatches.
Exemption from taxation would be
granted to farmers cooperative pur-
chasing organizations as we'll as to
selling organizations where the ma
terials purchased are turned over to
members of the organizations "at
actual cost plus necessary expenses"
Admissions Not Taxed
Distilled spirits diverted to bever-
age purposes or in the manufacture
of any article intended for beverage
use would be taxed at the rate of
1920 a gallon, the tax to be paid by
the persons responsible for such di-
version.
Other provisions provide that no
amusement tax shall be levied on ad-
missions, all of the proceeds of which
lnure exclusively to the benefits of
persons in the military and naval
service Or to persons who have sery-
ed in such forces and are in need:
that the jewelers. tax Of five percent
on eyeglasses and spectacles, and the
manufacturers tax of five per cent
on portable electric fans shall be re-
pealed and that tax Of ten percent
shall be imposed on lenses for cam
eras weighing not more than 100
pounds.
Some Of the new administrative
features in the bill are designed to
speed up settlement of claims in.
volving back taxes. estimated to to-
tai $1,500,000,000.
Provision also is made that no suit
or proceedings for collection of taxes
shall be begun after the expiration
of five years after the date the re-
turn is filed.
Computed ut Six Percent
After an assessment is made and
before final payment of the taxes.
due interest on the amount would be
computed at the rate of six percent
year instead of one percent a
month as at present
To Issue Securities
Other changes set forth the basis
for determining the gain derived or
loss sustained from sale or other
disposition of property of any kind.
Among legislative features in the
bill is one giving the secretary of the
treasury authority to isue $5OO,OOO,-
600 additional short-dated securities
making the total authorization for
such securities $7,5OO,OOO,O
With a view to simplifying present
tax return forms, the bill proposes
creation Of "tax simplification
board" to be composed Of three
members representing the public, to
be appointed by the president, and
three officers Of the internal revenue
bureau. to be appointed by the secre-
tary of the treasury, the public rep-
resentatives to serve without psy.5
The board would report progress to
congress each year and would cease