Every evening, Wilmington daily commercial., 1921-08-11
REVISED TAX BILL
AIDS BIG FAMILIES
WAYS and Means Committee
SIashss $3.50, 600 900 From
New Measure.

Washington, Aug 1f.~-Cuts and
changes In internal taxation amount
Ing to approximately t55s 100000 were
made yesterday by Republican MEM
bers OF the House Ways and Means
COMMITTEES who are framing the new
tax hin. which In expected to be re-
ported to the House on Monday next
and passed by that body by Saturday,
Aux. 20. Then II will go into the
ha nds OF the Senate Finance Commit
tee. thus giving Congress The oppor-
tunity 10 recess for a month, accord
inE to present plans.
Az agreed upon last light at con-
ference attended by President Harding,
Secretary OF the Treasury Mellon, the
committee Republicans and the House
leaders, the prindD pal changes were In
the repeal OF the excess profits taxes,
retroactive 10 Jan. /. 1921. the increase
of the tax on net incomes of corpora
tlons from 10 To Is per cent and the
striking out of all surtax brackets above
az per cent. these changes also dating
back 10 Jan. /, 1921. In addition, taxes
on freight and passenger traff1c and
Pullman seats and berths were ordered
abolished Jan. 1. 1922, leaving OF the
main transportation taxes only that on
express. Adjustments were made on
soft drink taxes, whereby the consum-
ers tar was eliminated and imposed on
the manufacturer. II was decided also
Ia do away with the stamp tax paid by
the consumer on proprietary medicine
and toilet articles such as toothpaste,
and TO replace this with a per cent
tax. on the manufactures.
IL IA - g1txr tot h
Iarach of New Jersey endeavored 70 have
the exemption on married mans in
come raised from the present $4,000 70
SO 500, and the exemption for a single
man from 81 900 to 81 500. He was un-
| successful. for the committee after hrst
adopting the idea abandoned II in favor
of an increase of 5000 on the exemption
for each child or dependent. At present
this exemption is 5000. but the commit
tee decided II should be 1900.
Another change which the committee
adopted was that the first $500 income
derived from building. and loan associ-
efions should not be taxed, as IL was
helived this scheme would encourage
building throughout the country.
While IL was emphasized that all the
changes agreed upon today were ten
| tatiye-and II was also pointed out
that even II definitely proposed by the
committee. they were likely 70 meet
death In the House or senate--the Re-
publican members seemed to believe
| they would stand.
A sci of figures made by Representa-
| tive Isongworth of Ohio showed tnat
| the total alterations amounted 70 some
| s5ss 900 600. the losses through the re-
| neal of taxes reaching sssl .UOu,eeo ana
| the gains totaiing t336.0oo.o00. the dif-
ference between these figures being
| 1855. 600 900
The repeal of the various taxes viii
include losses in the tax yield approx
/ nately as follows. according to the cal
| culation just mentioned. Excess
profits. $3.50. 900 900; surfaces, $4,000
900: freight. sf45.0oo.ooo; passenger
| 800 .0oo. 900: Pullman, ss.ooo.ooe; lux
ury. SIS 900. 900. soft drinks. s25,ooo,-
600: toilet articles. IS 100000, and so1s
onf, 600 in other forms of taxation Tns
gains would be. 10 per cent corpora
tion tax. ssfs, 200. 900. and sf5.oo0.oo'
additional; soft drinks, <s6.0eo,ooo
| toilet articles, $4,000. 900. The s4o.
400 oeo additional figured under TN
CORPORATION tax was explained by IN
statement that with the excess profit
tax repealed corporations would nav
larger profits available for taxation
The committee calculated the gain Q
sa1s. 900 900 through adding per cen
, levy would raise on the present seal
of profits It then calculated that neE
: profits taxes of Is per cent would rais
, $45, ,o0o, 900.