Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1921-09-21
SENATORS DEFEAT
MELLON TAX PLAN
Finance Committee Votes Down
Three of His Proposals.
STAND BY THE HOUSE BILL
Oppose Retroactive Tax Repeal and
Vote Unanimously for Increased
Income Tax Exemptions for
Heads cf Families.

Income Tax Exemptions for
Heads q Families.
Washington. Sept. 13.-The senate
finance committee voted unanimously
for Increased income tax exemptions
for heads IL families and for depend
ents
The provisions of the house rev.
suue revision him increasing the per
s0uai exemptions from 5000 20
$3.50 for heads u families having
Incomes ~ 5000 or less and the eX-
emptious for children and dependents
from $40 20 500 each were approved
All az Secretary ~ the Treasury
MeilUu's Tax recommendations that
came Go a vote were rejected 10y the
committee. and the committee expects
O. reject the remainder ~ the admin
istratiun tax program when il votes
on making the excess profits tax re-
peal retroactive.
Consideration ~ the rate sched-
uies VIII D. completed By the finance
committee on Friday. Chairman Pen
ruse announced. 50 that the bin can
- drafted and reported 20 the senate
on September 81
House Bm Stands.
The BIN. Gee its final form. VIII be
virtually the same measure that
PASSED the house. Senator Peurose
Vu I.eted that the finance committee
probably viii refuse Mr. Melons re-
quest On make the excess profits tax
retroactive. NJ this IS done. Senator
FeurHse said. Mr.. MELONS recon-
incubation that S@E0OuO.Oo0 in addi-
tiOuaf taxes be levied on small tax
payers Co make up for the loss u the
excess profits tax would not have 20
be carried ont.
Personally said senator Pcnrose.
Il would De- entirely willing to see the
excess profits tax abolished as %
January D. 1921. tu; my suspicion Is
that the committee viii defeat me-"
The finance committee fixed - per
cput as fhe maximum Individual In
cume suTtlx rate. This Is the same
figure as fixed by the house. Mr..
Mellon had recommended that sur
taxes he reduced to - per cent. but
the senate committee rejected his pro-
Tu>ai without a record vote. The re-
durt'uus would take effect January
]. 49,
The schedule ~ surtaxes viii be re-
arranged by the senate committee.
senator penuU~e said the committee
was working on a plan 60 have the
EurtlXes start ut I Ter cent on in
comes 90 Sfoo0 instead 81 5000 and
Increase TIE surtax per cent for
each additional S1uO " income iu-
stead 81 % per cent as ut present
The plan. IL adopted. would mean
q rHlurtIuu ~ SurtaXes on incomes
from ST.uu Co STOOD The 81 per
cent tax would De- levied on Incomes
81 STOOD auI ever.
I1 deciding uruu the house figure
for the surtaX maximum the senate
committee drafted q motion o. re-
durr fbe normal Income tax rate from
per- cent on incomes of less than
Sfuuo and s Per cent on incomes
above that figure % 3 per cent
LaFoIIette Motion Defeated.
senator IaFoIIette made the mo-
ton o. reduce the normal income tax.
but % was rejected without a record
vote. The senator announced later
that he would propose the reduction
Gu the senate as an amendment when
the tax BIN Is considered there.
The finance committee also ap-
proved the provision 81 the house bin
permitting taxpayers 90 deduct net
losses against their income for the
succeeding year.
Tu addition 90 the excess profits
tax repeal the committee viii vote on
Secretary Melons Recommendation
that rne-half the present transporta-
tlrn taxes De- retained for another
year and thai the existing tax on cap
It1I stock be repealed
senator Eeuru>e said that the con-
u5ttre probably WIN refuse o. retain
the transportation taxes and he pre-
d.cteI also that the corporation tax
90 I-tz per cent fixed by the house
bin Win De- approved by the finance
cuumlrtec There j. no disposition
ca the part a. the committee 10 in
Crcase the tax 90 - per cent as rec
cwwenEad hv Mr. Mellon Senator