Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-08-07
NEW TAX BILL
WILL BE READY
IN A FEW DAYS
Committee to Deter
mine Extent of Cuts
and Their Place.
Proposals to Levy on
Incomes of Personal
Service Corporations.

Washington. Aug. 6.-Majority mem
bers Of the house ways and means com
mittee expect to get down to brass
tacks of tax revision next week.
Chairman Fordney said that the re.
writing of levy provisions in the new
, law probably would begin Monday ane
that unless an unexpected snag was
encountered the new bills will be
ready in 10 days. Leaders generally
says house consideration will require
only few days.
The work before the Republican com
mitteemen is to determine the extent
of the cuts possible and just where they
are to be made. The general belief
prevails that the committee bill will
propose repeal of the excess profits tax
but the effective date remains to be
determind.
Corporations to Suffer.
AS substitute for the excess profits
tax it is planned to increase,~the cor
poration income tax from 10 per cent
to 10 per cent and also to repeal the
$1,000 exemption allowed corporations.
Chairman Fordney said that it might
be necessary to make some specific
provision in the bill to relieve the bur
den it has been claimed this would i'm
pose on the small corporations.
he also disclosed a proposal to write
into the bill a provision taxing the in
come of the so-called personal service
corporations, such as architectural firms
not incorporated. the same as the in
come of other corporations. The su-
preme court has held that the present
law is not applicable to such concerns.
Mr.. Fordney also said it was not
proposed to relieve public service cor
porations from a part of the Is per
cent income tax provision of the bill.
Aside from revision of these levy sec
tons the minds of many committee
members are turned to a repeal of the
higher income surtaxes, of all or part
of the transportation taxes and of the
fountain ice cream levies. However,
the actual revisons are yet to be
fights in the committee.
Drop Transportation Tax.
1t was estimated Saturday by some
that immediate repeal of the whole
tax, the soda water tax.
and the higher surtaxes together with
the S55,O0O.OO0 which the treasury ey-
perts figure will be lost this fiscal year
through repeal of the excess profits
taxes as of last January l would ap-
proximate the half billion dollar cut
house Republican leaders insist can be
made in the tax levy.
With such a reduction the taxes to
be paid this fiscal year would approx
innate $3,07O.0OO. 600, on the basis of
treasury estimates presented to the
committee and would include S235,-
100000 estimated back taxes.
In addition to this income the treas
ury figures customs receipts under the
new tariff law at $31O,OOO.OO
and income from miscellaneous sources
at about $3.50. 100000. making a total
IF So, 79O,OO0,O0o as against an outgo
estimated in the treasury statement
1T S4.554 100000.
Supporters of the tax cut declare.
that the apparent deficit OF
s746. 100000 would be greatly de-
creased through additional collections
n back taxes estimated at probably
100000, a larger income from miscel-
aneous sources and decreases in expen-
iitures including those on account of
he public debt and the various federal
lena rtmentS