Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-16
of Tax Burdens
Said to Result From New
Schedules Formulated in
House

WASHINGTON, Aug. 15.-With re-
auctions of $600,000,O00 below the
present high war taxes, the Repub-
lican revision bill was virtually COM
pleted by the house ways and means
committee Saturday.
The cuts, directly or indirectly,
will tighten the tax burdens of near
ly everyone in the country from the
head of corporations, earning mil
lions, to the children who have been
compelled to hand over" extra pen
MES to get chocolate soda, Chair
man Fordney, of the committee said.
The bill will raise about $3,000,000,-
600, as compared with $3,600,000,0 900
under the present statute.
Plans are to vote on the bill in the
house next Saturday at 8 o'clock
| Some Of Changes
Here are some of the changes
made:
Repeal of the express and oil pipe
line transportation taxes, effective
January 1, 1922.
| Imposition of a license tax of SO
on vendors of soft drinks, effective
upon enactment of the bill.
Substitution Of manufacturer
tax Of ~ cents gallon on cereal
beverages (near beer) for the pres
emit levy Of Is per cent, effective
upon enactment of the bill
Imposition of five per cent tax
on the full manufacturers selling
price Of the following articles if sold
by the manufacturers at levels In
excess Of those specified:
Carpets and rugs, $3.50 per square
yard; trunks, $40 each; Valises, trav-
cling bags, suit cases, hat boxes used
by travellers and fitted toilet cases,
SIS each; purses, pocketbooks, shop
ping and hand bags, 81 each; port
able lighting fixtures, including
each. fans 81 each. and house OF
smoking coats or jackets and bath
jor Longing robes, So each.
| These taxes also would become eff
fect1ve upon enactment of the bill
Announcing completion of their
work, members Of the committee said
they believed the bill as agreed upon
would produce the $3,000,00O,O to-
tai which Secretary Mellon estimated
at the White House tax conference
last Tuesday it would be necessary to
raise from internal revenue next
year. Not all of this sum would be
collected on this years business
however, as the total includes $780,
100000 which treasury officials es-
innate can be collected on back
taxes.
The bill as finally drafted by the
committee will be presented to the
house Monday, under present plans
/ or Republican leaders, and will bt
passed next Saturday after two days
| OF general debate and two days con.
| sideration of amendments under the
! Hve-minute rule. From the house il
| Will go to the senate where the fl.
nance committee will consider it dur.
ing the proposed congressional re-
cess with a view to reporting to the
| senate Wnen congress reconVeneS
probably late in September.
| Oil Pipe Lines
| with the removal of the express
and oil pipe lines taxes, the commit
tee eliminated all of the transporta-
ton taxes. No change was made
telephone, cable and radio messages
this section of the old law remain
ing in force
The manufacturers tax Of S pei
cent on carpets, trunks and other
articles is demanded to replace the
1
including those on wearing apparel
| but the plan is to continue these
taxes, collected and paid to the gov
ernmeHt by the retailers, until next
January l., despite the fact that the
manufacturers tax would become eff
fective upon enactment of the bill
The license tax on vendors of soft
| drinks is new levy, exclusive of
the manufacturers tax on syrups
used at fountains and on infer
mented beverages carbonated waters
| Or beverages or other soft drinks sold
| in containers.
| Besides the charges agreed upon
today, the bill, as it will be pre-
sented to the conference of house Re-
| publicans Monday, will contain, mem
| bers said, these provisions:
Repeal Of the excess profits tax
| and an increase in the income tax on
| corporations from 10 to Is per cent,
| with the $4,000 exemption retained,
effective January l. 1921.
Repeal of the income surtax
9 9saGkst5 a0q 1Sa 81 per cent effective
Repeal Of all forms of transporta-
tion taxes, effective January 1, 1922.
An increase from $4,000 to $4,000
in the exemption to married men
having an annual net income of So
900, or less, effective January 1,
1921.
An increase in the exemption to
heads of families on account of de-
pendents to $500 for each depend
ent, instead of 5000 as at present, eff
fectiVe January l, 1921.
Exemption Of Income
Exemption from tax of the first
$500 of income received by individ-
uals from investments in building
and loan associations, effective jan
uary 1, 1921.
Repeal of the tax on fountain
drinks and ice cream and the sub
stitution of a flat tax of ten cents
a gallon on all fountain syrups, to
be paid direct by the manufacturer
or maker, effective upon enactment
Of the bill.
Repeal of the stamp taxes on per-
fumes, extracts, tooth paste and 9TH
er toilet preparations and proprie-
tary medicines, and the substitution
Of a manufacturer tax of per
cent on the sale prices. effective on
the enactment of the bill.
Substitution Of a manufacturer's
tax of. two cents a gallon for the
present 10 per cent on the sale price
Of unfermented juice beverages, and
carbonated waters or beverages or
other soft drings sold in containers,
effective on the enactment of the
bill.
Reduction in the manufacturer
tax on candy, 5 to 8 per. cent. the
manufacturer taxes on furs from
20 to 5 per cent, and on sporting
goods, from 10 to per cent, and
the levy on art and art works from
10 to 5 per cent, effective on the en-
actment Of the bill.
Imposition of a manufacturers tax
Of three cents gallon on certain
classes of grape juice and two cents
a Gallon on other classes in lieu OF