Five Mile Beach weekly journal., 1921-08-19
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-SiIesian Question
Referred to League
of Nations.
BY EDWARD W. PIckARp.

Although 1t has been freely and
generally predicted that the RepuD-
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-
use Of government, 1t now appears
they have found a way to fulfill the
promise. President Harding n 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,OO0,OOO This
calls for the raising of $3,075,0OO,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 not including
postal receipts, will be $4,034,0O0.0OO
According to the agreement, saving
in the various departmental appro-
priations will amount to S35,OOO,0OO
and a plan was devised whereby the
public debt expenditures will be re-
duced S150.O0O 900.
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 81,
600 for single persons and $1,000 fol-
heads of families to $1,000 and $2,50C
respectively was voted down. This
would have meant a loss of revenue
Of nearly fifty million dollars. An
other change adopted was the reduc
ton of the tax IN very large incomes
There Will be NO tax above the 30 pei
cent now levied on incomes of $66,
OO0-which will be a relief to abou'
ten thousand of our wealthiest citi
zens, but will not call for cheers
from the rest Of Us.
The committee also decided on {
complete repeal of taxes on freight
passenger and Pullman transporta
ton, and increased the fiat corpor
alton tax from 10 per cen to Is pc
cent. In this and other respects tn
| committee disagreed with the result
of the conference with the President
and the changes 1t has made to dat
lower the yield from internal take
to $3,O20,0 900, 0OO. OF course all thes
things are dependent on further &C
ton by the committee and acceptanc
by the house and senate.
The losses in revenue below tn
present law which will result fror
the program as it now stands includ
$450.O00,O00 from repeal of the exces
profits tax, $90.OOO.0O0 from the RI
duction in the higher s~urtaxes, $145
100000 from repeal of the tax of
per cent on freight, 100000 900 fror
repeal of the tax of 8 per cent o
passenger transportation, $4,000
from the repeal Of the 8 per CEN ia
on Pullman charges, $25,OOO,OO0 frol
che repeal Of the soda fountain ia,
SIS, 100000 from the repeal of tn
tax on proprietary medicines, beside
a few smaller items which bring tn
total up to 1891 10000.
Increases made offsetting these los