The Clio messenger. (Clio, Mich.) 1907-current, 1921-08-18
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-Silesian Question
Referred to League
of Nations.
BY EDWARD w. PicKAaD.

Although il has been freely and
generally predicted that the Repub-
Leans would be unable 10 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, II now appears
they have found way to fulfill the
promise. President Harding and the
majority leaders of the house got to-
,gether last week and agreed on
program by which government expen-
dtures will be cut $516,000,000. This
calls for the raising of $3,075 100000
from internal taxation, which Is $685.
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 10 the agreement, saving
in the various departmental appro-
priations will amount to $50, 100000,
and a plan was devised whereby the
public debt expenditures will he re-
duced S150.D0O.0O0.
II was the earnest desire of the Re
publican leaders that the imposition
Of new taxes be avoided, and under
the present plan the proposed so tax
on automobiles, the Scent postage
and 2-cent stamp on bank checks will
be unnecessary
or 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. II was voted that
the allowance for each dependent
shall be $500 instead of 5000 as ut
present. which means greatly i'm
creased exemption for the man with
large family. A proposition to in
crease the present exemption OF ST.
900 for single persons aud $1,000 for
heads Of families to 81 800 and s.. 500
respectively was voted down. This
would have meant 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 30 per
cent iCw levied on incomes of $G6,-
9OO-I hich will be relief TO about
ten thousand of our weaIthiest citi-
from the rest Of rs.
The committee also decided on a
complete repeal OF taxes on freight
passenger and Pullman transporta-
ton, and increased the fiat corpor-
alton tax from 10 per cent 10 IL per
cent. In this and other respects the
committee disagreed with the results
Of the conference with the President,
and the changes ii has made ia date
lower the yield from internal taxes
to S3,020,00O,0OO. or course all these
things are dependent on further ac-
tlon by the committee and acceptance
10y the house and senate
The losses Ia revenue below the
present law which will result from
the program as II now stands Include
Si50,000,000 from repeal OF The excess
profits tax, $90.0O0.0OO from the re-
duction In the higher sIriaXes. S145.- |
100000 from repeal Of the tax of 3 |
per cent on freight, Sl0O,OOO,OOO from
repeal Of the tax of 3 per cent on
passenger transportation. $S,0O00OO |
from the repeal Of the 3 per cent tax |
on Pullman charges, $25,000,0O0 from
the repeal of the soda fountain tax,
S15,0O0,000 from the repeal OF the
tax on proprietary medicines, besides
a few smaller items which bring the |
total up TO 1891, 100000.
Increases made offsetting these loss