River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1921-08-18
Revenue Bill Makers Find Way to
Reduce Taxes by About
Half a Billion.
GOVERNMENT EXPENSES CUT
income Tax Allowance for DEPEND
ents DoubIed-Grain Exchange
Regulation Bill Passed by
Senate-Silesian Question
Referred to League
of Nations.
sy EDWARD w. PIcKARD.

Although it has been freely and
generally predicted that the Repub-
licans would be unable to carry out
this year their party pledge to lower
taxes, that the revenue bill would
show only revision and not reduction
because of the necessarily large ex-
penses of government, 1t now appears
they have found way to fulfill the
promise. President Harding and the
majority leaders of the house got to-
gether last week and agreed on a
program by which government expen-
ditures will be cut $516, 100000. This
calls for the raising of S3,07o,OOOOOO
| from internal taxation, which is $780,
| 100000 less than the total which the
treasury estimated would be the yield
| of the present law during the fiscal
year, 1922 The total to be raised
from all sources, but not including
postal receipts. will be $4,O34, 100000.
According to the agreement, saving
In the various departmental appro-
priations will amount to $35,OOO,OOO,
and a plan was devised whereby the
public debt expenditures will be re-
duced S150,0O0,000.
1t was the earnest desire of the Re-
publican leaders that the imposition
of new taxes be avoided, and under
the present plan the proposed $40 tax
on automobiles, the 3-cent postage
and 2-cent stamp on bank checks will
be unnecessary.
OF more immediate interest, per-
haps, to the average citizen was the
action of the ways and means COM
mittee of the house, which is framing
the revenue bill, concerning the per-
sonal income tax. 1t was voted that
the allowance for each dependent
shall be $500 instead of 5000 as at
present, which means a greatly in
creased exemption for the man with
a large family. A proposition to in
crease the present exemption of ST.
900 for single persons and $1,000 for
heads of families to $1,000 and $500
respectively was voted down. This
would have meant loss of revenue
of nearly fifty million dollars. An
other change adopted was the reduc-
ton of the tax on very large incomes.
There will be no tax above the 81 per
cent now levied on incomes of $685.
000-which will be relief to about
ten thousand of our wealthiest citi-
zens, but will not call for cheers
from the rest of us.
The committee also decided on a
complete repeal of taxes on freight,
passenger and Pullman transporta-
ton, and increased the fiat corpor-
alton tax from 10 per cent to Is per
cent. IN this and other respects the
committee disagreed with the results
of the conference with the President,
and the changes it has made to date
lower the yield from internal taxes
to S3,020000,000. OF course all these
things are dependent on further ac-
ton by the committee and acceptance
by the house and senate.
The losses in revenue below the
present law which will result from
the program as it now stands include
$450000,000 from repeal of the excess
profits tax, S90,000,000 from the re-
duction in the higher surtaxes. S145,-
100000 from repeal of the tax of 8
per cent on freight, $100,000O00 from
repeal of the tax of per cent on
passenger transportation, $S000,000
from the repeal of the 8 per cent tax
on Pullman charges, $25,000,000 from
the repeal of the soda fountain tax,
S15O0O,0O0 from the repeal of the
tax on proprietary medicines, besides
few smaller items which bring the
sotal up to 1891 100000.
Increases Tuade offsetting these loss.