Evening star., 1921-08-19
|6D CHANGES FIXED
IN TAX MEASUREbY.
| HOUSE COMMITTEE
Eliminate Levies in Bill
on Proprietary Medi-
| cines.
DONATIONS TO CHARITIES
ARE ALSO EXEMPTED
Full Committee to Take Up Sub
ject at Tomorrow's
Meeting.

Elimination OF taxes on proprietary
medicines was agreed upon today
by the House ways and means COM
mittee' which approved more than
sixty changes in the republican tax
bill
Subsequently the majority members
OF the committee voted to reduce the
tax on cereal beverages from the pro-
posed cents a gallon to 4 cents, and
to bring fire and marine insurance
companies under the 12h per cent
corporation income tax on the same
basis as life insurance companies.
The majority also approved an
amendment exemptfng from taxation
corporation donations made to char
ity. provided they do not exceed
per cent of the corporations net in
come.
Under another change the proposed
per cent manufacturers tax. to be
substituted for the so-called luxury
and nuisance taxes. would not apply
on goods already contracted for.
These 'changes in the bill will be
taken up tomorrow by the full COM
mittee. Meanwhile the House went
ahead today with consideration of
amendments framed yesterday by the
majority and approved today by the
whole committee.
Democrnts Fight for Chanxe.
Democratic committee members
were understood to have made the
hight for the change in the tax on
p,oprietay medicines. Representative
Garner Of Texas proposed that the
navy OF 5 per cent on such manu-
factures be cut to one-tenth of 1 per
cent and accepted a suggestion of
Representative Timberlake, repub-
lican. Colorado. that the entire tax
be removed.
One of the principal amendments
approved today by the whole COM
mittee provinces for creation of a tax
investigating commission, which would
inquire into:
Effect upon the federal revenues
Of tax-eXempt state and municipal Sc
curities.
Effect of existing differences in
law between the federal taxation of
individuals and partnerships and Of
! corporations.
| The taxation of expenditures and
| reduction of the tax rates upon saw
| ings, as means for raising revenue,
stimulating thrift and redistributing
the burdens of taxation, and the ef-
fects Of income and profits taxes
upon the accumulation and invest
ment of liquid capital.
The commission would make year
| ly reports to both the President and
Congress and consist of nine men,
o.
| bers of the House. appointed by the
presiding officers. and three repre-
! sentatiyes of the public, appointed
! by the President.
Debate IL Concluded.
| General debate on the tax bill was
| concluded in the House late last night.
The House adjourned soon after IL
o'clock, having been in session con-
! tinuously for twelve hours.
| Representative Cochran, New York,
| democrat, attacked not only the bill
! itself, but the rule under which the
democrats claim they will be cut of
from offering any amendments to the
bill.
Using Treasury estimates to sup
port his argument that the tax bill
| would result in a huge government
deficit at the end Of this fiscal year.
Treasury went into the market for
$1,000, 600. 900 of money to help pay or
binary expenses of the government
there would be a panic.
Quotes Woodrow Wilson.
Reading Official statements by for
mer President Wilson and former
democratic secretaries of the Treasury
tax, Representative Longworth told
the democrats that in opposing this
repeal they were "repudiating the
democratic platform"
You are getting your orders by tel
egraph from Scotland Neck" Mr..
Longworth said. referring to Minority
Leader Kitchin's dispatch to the DEM
ocratic caucus. urging solid demo-
cratic opposition to the bill. It think
the majority Of my party made mis-
take in deferring to January 1 next
the repeal Of the higher surtaxes and
exess profits tax, but 1 acquiesce.
These two taxes are the greatest
shackles we have on business and in
dustry and the greatest burdens on
both producer and consumer"
Representative Woodruff, repub-
lican, Michigan, announced that he
would oppose the bill. while another
republican. Representative John n.
Nelson of Wisconsin, spoke against it.