Evening star., 1921-08-14
TAX REVISION BILL
| COMPLETED, GIVING
| NEEDED 3 BILLION
G. o. P. Members of Ways
and Means Committee
Make Final Draft.
LUXURY LEVIES PLACED ~
ON THE MANUFACTURER
Additional Changes Adopted-All
Transportation Levies Now
Eliminated.

Revision Of the 1918 tax law was
completed yesterday by republican
members Of the House ways and
means committee with the adoption
Of these additional changes:
Repeal of the express and oil pipe
line transportation taxes. effective
January 1, 1922.
Imposition of a license tax of $40
on vendors of soft drinks. effective upon
upon enactment Of the bill.
Substitution of a manufacturers tax
of 12 cents a gallon on cereal bev-
erages tnear beer) for the present
levy of Is per cent, effective upon
enactment of the bill
Imposition of a 5 per cent tax on
the full manufacturers selling price
of the following articles. IL sold by
the manufacturers at levels in ex-
cess of those specified:
Would Reach Estimate.
Carpets and rugs, $3.50 per square
yard; trunks. $50 each; valises, travel
ing bags. suit cases. hatboxes used
SIS each; purses. pocketbooks. shop
ping and hand bags. 81 each: portable
lighting fixtures, including lamps OF
all kinds and shades, SO each: fans.
81 each, and house or smoking coats
| or jackets and bath or lounging robes.
So each.
These taxes also would become ef-
Announcing completion of their
| work. members of the committee said
| they believed the bill as agreed upon
| would produce the three-biIlion-d dollar
total which Secretary Mellon esti-
mated at the White House conference
last Tuesday it would be necessary to
raise from internal revenue next year.
on this years business, however. as
the total includes $3se. .oeo. .o8e which
Treasury officials estimate can be COL
| lected on back taxes.
The bill as finally drafted by the
| committee will be presented to the
| House tomorrow. under present plans
| of republican leaders, and will be
passed next Saturday after two days
of general debate and two days con-
sideratfon of amendments under the
fve-miRute rule. From the House it
| will go to the Senate, where the
finance committee will conHder it
during the proposed congressional
| the Senate when Congress reconvenes.
probably late in September.
Transportation Freed.
| With the removal of the express
and oil pipe line taxes. the committee
eliminated all of the transportation
taxes. No change was made. how
ever, in the levies on telegraph. teie-
phone. cable and radio messages. this
section Of the old law remaining in
| force.
| The manufacturer tax Of per
cent on carpets. trunks. and other ar
ticles is designed to replace the So
| called luxury levies now in force, in
cluding those on wearing apparel. but
the plan now is to continue these
taxes. collected and paid to the sov-
4 o
January 1. despite the fact that the
manufacturers tax would become
effective upon enactment of the bill.
The license tax on vendors Of soft
drinks is a new levy. exclusive of the
manufacturers tax on sirups used at
fountains and on unfermented bever-
ages, carbonated waters or beverages
har lr,r
Besides the changes agreed upon
yesterday. the bill. as 1t will be pre-
sented to the conference of House
republicans tomorrow. will contain,
members said, these provisions:
Other Provisions.
Repeal of the excess profits tax and
an increase in the income tax on cor
porations from 10 to Is per cent. with
the $4,000 exemption retained. efrec-
tive January 1. 1921.
| Repeal OF the income surtax brackets
| above 80 per cent, effective January
/, 1921.
Repeal of all forms Of transporta-
| tion taxes. effective January 1, 1922.
An increase from $1,000 to $500 in
the exemption to married men having
an annual net income of 5000 or less.
| effective January /, 1921.
1 An increase in the exemption to
heads of families on account of de-
pendents to $500 for each dependent.
instead of $500. as at present. effective
January 1. 1921.
| Exemption from tax OF the first
$500 of income received by individuals
from investment in building and loan
associations. effective January /. 1891.
Refreshnent Tax Repeal
Repeal Of the tax on fountain
drinks and ice cream and the substi-
tuition Of q nat tax of ten cents q
! gallon on all fountain sirups. to be
paid directly by the manufacturer or
maker, effective upon enactment Of
| the bill.
Repeal OF the stamp taxes on per-
| fumes extracts. tooth paste and other
toilet preparations and proprietary
medicines and the substitetion of q
manufacturers tax Of per cent ON
the sale prices. effective on the en-
actment Of the bill.
Substitution Of . manufacturers' tax
1 Of cents . gallon for the present
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