Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-09
NEW TAX BILL To
BE READY WITHIN
10 DAYS, IS BELIEF

WASHINGTON. Aug. S.-Major-
means committee expect to get down
to brass tacks of tax revision this
week.
Chairman Fordney said today that
the rewriting of levy provisions in
the 1918 law probably would begin
Monday and that unless an uneX-
pected snag was encountered, the
new bill should be ready within ten
days.
With revision of the administra-
tive features out of the way, the
work now before the Republican COM
mitteemen is to determine the ex-
tent Of the cuts possible and just
where they are to be made. The
general belief seems to be that the
committee bill will propose repeal
of the excess profits tax, but wheth-
er the effective date will be last
January 1 or next January ap-
parently remains to be determined.
AS a substitute for the excess prof
it's tax, it is planned to increase the
corporation income tax from the
present ten per cent to fifteen per
cent and also to repeal the $1,000
exemption allowed corporations un-
der the existing law. Chairman
Fordney said today. however, that
it might be necessary to make some
specific provision in the bill to re-
lieve the burden it has been claimed
this would impose on the small cor
porations with limited incomes.
Another New Proposal
The chairman also disclosed
proposal to write into the new bill
a provision taxing the income of the
so-called personal service corpora
tions, such as architectural firms,
not incorporated under law, the
same as the income of other cor
porations. The supreme court has
held that the present law is not APP
plicable to such concerns.
Mr. Fordney also said it was not
proposed to relieve public service
corporations from part of the. tlt-
teen per cent income tax provision
of the bill The chairman indicated
that he was not particularly I'M
pressed with the argument that TINS
would hit many such corporations
very hard, saying that the electric
light, street railway, gas and such
companies having a small net IN
come would pay proportlonately
small revenue to the government.
Aside from revision of these levy
sections of the law, the minds OF
many committee members are turned
to a repeal of the higher income sur
taxes, of all or part of the transport
tation taxes and of the fountain ana
ice-cream levies. 1t is explained
however that it does not necessarI :,
lily follow that these changes will
be made or that other changes in the
1918 law will not be made. The &C
tual revisions yet are to be agreed
upon with indications of some fights
in the committee before the COM
pleted bill comes out.
Expert Estimates
1t was estimated today by some.
that immediate repeal of the whole
transportation tax, the soda water
tax and the higher surtaxes, togeth-
err with the SIS, 100000, which the
treasury experts figure will be lost
this fiscal year through repeal OF
the excess profits tax as of last
January /, would approximate the
half billion dollar cut which Re-
publican leaders in the house insist
can De IlduS III lllC lcA iSNJ'
With such a reduction, the taxes
to be paid this fiscal year would
approximate $S,o7O,ooO.Ooo, on the
basis of treasury estimates present
cd to the committee, and would in
Guide $235, 100000 estimated back
taxes. In addition to this income,
the treasury figures customs receipts
under the proposed new tariff law
at S37O,OOO,00O and income from mis-
cellaneous sources at about $3.50, Oo0,-
600, making total income of So
100 100000, as against an outgo estl-
mated in the treasury statement at
Supporters of the tax cut declare.
however, that the apparent detlcll
of S764. 100000 would be greatly de-
creased through additional collections
on back taxes, estimated at proba bly,
$1oO,ooO,OoO, a larger income 9nerd dr ON
miscellaneous sources ana decreases
in expenditures, including those on
account of the public debt, and the
various federal departments.