Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1921-08-19
Revenue Bill Makers Find Way to
Reduce Taxes by About
Half a Billion.
GOVERNMENT EXPENSES CUT
dncome Tax Allowance for Depend
ents DoubIed-Grain Exchange
Regulation Bill Passed by
Senate-Siiesian Question
Referred to League
of Nations.
sy EDWARD w. PIcKARD.

Although it has been freely and
generally predicted that the Repub-
Means would be unable to carry out
ahis 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, it now appears
they have found a way 10 fulfill the
promise. President Harding and the
majority leaders Of the house got to-
gether last week and agreed on
program by which government expen-
tiitures will be cut SOLE. 100000. This
calls for the raising of S3,O15.OOO.OOO
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 mot including
postal receipts. will be $4034,000,OOO.
According to the agreement, saving
In the various departmental appro-
priations will amount to $35,00O,000,
and plan was devised whereby the
public debt expenditures will be re-
duced S15O,0OO.0o0.
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 SO tax
Ion automobiles, the Scent 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
1nittee 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 greatly in
Icreased exemption for the man with
IA large family. A proposition to in
crease the present exemption of ST.
600 for single persons and $1,000 for
ireTdfs of ffarrfffes to 81, 500 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-
zion of the tax on very large incomes.
There will be no tax above the 81 per
cent now levied on incomes Of $685.
Gs9-which will be a relief to about
ben thousand of our wealthiest citi-
zens, but will not call for cheers
from the rest of us.
The committee also decided on
.anoaI Of favac on frpiphf
passenger and Pullman transporta-
ltion, and increased the fiat corpor-
lation tax from 10 per cent to 10 per
lcent. In this and other respects the
committee disagreed with the results
lof the conference with the President,
and the changes 1t has made to date
Hover the yield from internal taxes
ito $3,020000,000. OF course all these
things are dependent on further &C
tiOn 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
$450000000 from repeal of the excess
profits tax, $90,000,000 from the re-
duction in the higher surtaxes, $145,-
100000 from repeal of the tax of
per cent on freight. S100000,0O0 from
repeal of the. tax of s per cent on
passenger Transportation, ss,Oo0,0oO
from the repeal of the s per cent tax
on Pullman charges, S25,000,000 from
the repeal of the soda fountain tax,
$15,000,000 from the repeal of the
tax on proprietary medicines, besides
a few smaller items which bring the
total up to 1891. 100000.
Increases made offsetting these loss