The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-08-11
PROPOSE TO RAISE
THE EXEMPTION FOR
DEPENDENTS TO $4OO
Changes Contemplated Will Re-
suit in Net Reduction of
$555,0OO,OOO in Taxes
is $45,OOO,OOO BELOW
CONFERENCE ESTIMATE
This Would Be Made Up by Re-
peal of Excess Profits Ex-
emptiOn of $4,000.
(5y The Associated Press)

WASHINGTON. Aug. 1O-Even
more extensive changes in tax levies
than were agreed upon at the White
House conference between President
Harding and republican leaders of the
House of Representatives were voted
tentatively today by the majority
members of the ways and means com
mittee. AS summarized in a formal
statement the committee action in
cluded:
Repeal OF the excess profits tax,
effective January /. 1921.
, An increase of the income tax on
corporations from ten per cent to ff-
teen per cent with the $4,000 exemp-
tion retained effective January 1, 1921.
Repeal of all taxes on the transport
tation of freight and passengers and
on seats and berths, effective January
/. 1922.
An increase in the exemptions to
heads Of families on account OF de-
pendents to $4Oo for each dependent
instead of $500 as at present, effective
January 1. 1921.
Repeal of the so-called luxury taxes
on clothing apparel, effective January
/, 1922.
Exemption from income tax Of the
flrst $500 of income from stock held in
building and loan associations.
4 Revisions of existing taxes included:
Repeal OF the tax on fountain drinks
and ice cream and the substitution Of
a fiat tax OF ten cents a gallon on all
fountain syrups to be paid direct by
the manufactures or maker.
Repeal OF the stamp taxes on per-
fumes. extracts, tooth paste, and other
toilet preparations and proprietary
medicines and substitution of a manu-
facturers' tax OF FIVE per cent on the
sale price.
Removal Of the fifteen per cent
manufacturers tax on cereal beverages
and the levying of a manufacturers
tax of Is per cent per gallon.
Substitution of a manufacturers tax
of two cents a gallon for the present
ten per cent on the sale price of un-
fermented juice beverages and car
donated waters Of beverages or other
soft drinks sold in containers.
The levying of q manufacturers tax
Of three cents n gallon on certain
classes of grape juice and two cents
n gallon on other classes in lieu of
the present tax of 10 per cent on the
sale price.
1t also was agreed to levy FIVE cents
a poung on carbonic acid gas sold to
manufacturers of carbonated gases.
Members of the committee estimated
roughly that these changes would re-
suit in a net reduction of S5550O0, 600
in the total yearly tax bill. This is
S45 900 below the estimate reached
at the White House conference, but it
was explained that the estimated reve-
nue. from corporations would be $45,-
100000 greater than heretofore reckon
ed by reason of the repeal of the ex-
cess profits exemption OF $4,000 plus
an amount equal to the eight per cent
or the inevested capital for the tax
able year.
The tentative changes agreed upon
today constitute the great bulk of
those proposed to be made. and house
leaders were more confident than ever
tonight that the bill would be COM
pleted In time for presentation to
caucus OF house republicans next Mon
day. Some other minor changes in
levies are understood to be contem-
plated and after all finally have been
ical task Of rewriting the present law.
Several new proposals were put
through today and other changes made
were quite different from those agreed
upon at the White House conference.
particularly the repeal of all the trans
portation taxes next year instead of
half Of them. The question of light
ening the burden of men having small
incomes was brought up by Represen-
tative Racharach, OF New Jersey, who
proposed that both single and married
men whose net income was below
$4,000 be granted an additional exemp-
ton OF $500 a year or else the rate
IN their incomes be lowered from four
10 three per cent.
This proposal was voted down, but
tentative agreement was reached to in
crease the exemption of heads of fami-
Hes TO $500. This action was recon
sidered later. however, and the exemp-
tion for dependents was doubled. Mem
bers opposing the other changes We're
understood to have earned that this
would relieve those more in need OF
--iief than would the other proposals.