Evening star., 1921-09-07
PUSHING
WORK ON TAX BILL
Majority Members of Com
mittee Hope to End PreIim-
mary Consideration Today.

Majority members Of the Senate
finance committee hoped to complete
today preliminary consideration of
| the House tax bill and to get under
way the actual drafting of a new
| measure after hearing Secretary Mel
Ion tomorrow. 1t is understood that
the Treasury Secretary will suggest
retroactive repeal of the excess
profits tax. for which there is said to
be a growing sentiment in the COM
| mittee, despite the action of House
republicans in voting to postpone the
efective date until next January 1.
Treasury experts are assisting the
Senate committee in it's study of the
House measure and have prepared for
the committees information tables
showing the estimated amounts of
| revenues to be derived from the va
, rious sources under the House bill
in the calendar years of 1922 and
1928. as compared with amounts that
probably would be realized under the
present law.
1922 Return $4,000, 900.
For 1922 the return under the
House bill Is estimated at $2.96O,49O,-
900. as against 1880. ZOO. 900 under
the act of 1918, while in 1928 the
| total would be $2.644,37O,0OO. COM
pared with $3.459.O00.OOO under the
existing statute. In 1922 the corpo-
ration income and excess profits tax
is estimated at $S50.000.OOO. the same
as under the present law, but in 1928
this would be reduced to $56OOOO,OOO
through repeal of the profits tax.
Individual income tax returns would
| fall OFF s70.000.000 to $s30,OOO. 900 in
1922 through increased exemptions to
heads of families, while in 1928 the
total would be cut $15O.OOO,OO0 to
| S75O.0OO.00O, as result of repeal of
the higher income surtax brackets
corrections OF back taxes next year
mates and $S40.000,0O0 in 1923.
Would Cut Miscellaneous Taxes.
The House bill would cut miscel-
der the present law to $3.50, 900 in
1922. The changes include:
Repeal of the transportation taxes,
| 62.0OO.00O.
Repeal o Of odo the the insurance premium
from $4,000. 900 to s1s,0o0.0Oo.
Reduction in the tax on soft drinks,
fruit aoo God 5Tices sir%ps a1H soo etc. from
goods from $4,000, 900 to 81 200. 900.
/ Reduction in the tax on CANDY from
| $22,000,00O to $14,O0O,OO0
Reduction of the tax on fur articles
from $9.2O0.000 to $4.69O,0O0.
Repeal Of the tax on toilet soaps,
ETC., 81, 100000.
Reduction in the tax on luxuries
from $2O.000,000 to s5,00O,OOO
| Repeal of the levies on perfumery.
cosmetics. proprietary medicines. etc,
| $6,000.000.
Would Provide Speedy Refundins.
A new feature in revenue legisla- :
! ton now under consideration by the
Senate committee would make pos
sible speedy refunding of taxes i'm
properly paid. Treasury experts have
been asked to T.-aft such a pro
vision. Chairman Penrcse id, adding
! that the government had been holding
funds due TAXPAYERS for two or three
years and that no interest was al
| lowed or credit given ON future taxes.
Among matters considered yeste--
day by the committee were the House
provision for taxing insurance com
panies, administrative provisions of
the income tax. repeal of the trans
pcrtaeton taxes and an additional tax
Of $4.20 gallon on alcoholic liquors
for ncn-beverage purposes