The Holbrook news., 1921-08-26
Revenue Bill Makers Find Way to Reduce Taxes by About
 Half a Billion.
GOVERNMENT EXPENSES CUT
Income Tax Allowance for Depend ents Doubled-Grain Exchange Regulation Bill Passed by Senate-Sileslan Question
 Referred to League
 of Nations.
ev EDWARD w. PACKARD.

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, it now appears they have found a way to fulfill the promise. President Harding and the majority leaders of the house got to- Kether last week and agreed on program by which government expen- ditures will be cut $516,OOO,OOO. This calls for the raising of $3,075, 100000 from internal taxation, which is S495,- 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, 100000.
 According to the agreement, saving Tn the various departmental appro- priations will amount to $35,0OO,OOO, and a plan was devised whereby the public debt expenditures will be re- duced s15OyO00.OOO.
 It was the earnest desire of the Re publican leaders that the imposition of new taxes be avoided, and under ihe present plan the proposed $10 tax on 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 mittee of the house, which is framing the revenue bill, concerning the per sonal income tax. It was voted that lhe allowance for each dependent shall be $400 instead of $200 as at present, which means a greatly in- creased exemption for. the man with B large family. A proposition to in- crease the present exemption of $1,- poo for single persons and $2,000 for heads of families to $1,5O0 and $25OO 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 on very large incomes. There will be no tax above the 32 per cent now levied on incomes of $66,- OOO-which will be a 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- tion, and increased the flat corpor- ation tax from 10 per cent to 15 per cent. In this and other respects the committee disagreed with the results of the conference with the President, and the changes 1t has made to date lower the yield from internal taxes 10 $3,020.O00.0OO. Of course all these things are dependent on further ac- 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 s450, 100000 from repeal of the excess profits tax, S9O,OOO,OOO from the re- ductiOn in the higher surtaxes, $145,- 100000 from repeal of the tax of per cent on freight, $10OOO0,0OO from repeal of the tax of 8 per cent on passenger transportation, S8,000,OO0 from the repeal of the per cent tax on Pullman charges, $25,000,000 from the repeal of the soda fountain tax, S15,OOO,OO0 from the repeal of the tax on proprietary medicines, besides a few smaller items which bring the total up to $S91 100000.
 Increases made offsetting these loss