The New York herald., 1921-12-21
Extra Levy on Railroad
Fares. Ice Cream and Lux
uries Stop on Jan. 1.
JEWELS CONTINUE TO PAY
Theater Tickets and Club Dues
Will Get No Rebate From
10 Per Cent. Extra.
Special Dispatch TO THE New YORK HERALD
New York Herald Bureau,
Washington. ID. C., Dec. 20.

Special Dispatch TO THE New YORK HERALD.
New York Herald Bureau,
Washington. ID. C.. Dec. 30.
Removal of all Federal taxes begin
ming January / from railroad fares,
ice cream, luXuries and other so-called
nuisance" levies will save consumers
throughout the United States about
$500 900, 900 a year, it was estimated
here to-day on the basis of returns to
the Internal Revenue Bureau.
Removal Of the nuisance taxes is
provided for in the revenue law of
1921, just passed, VIII h repeals and
modifies in innumerable instances the
much complained of levies in the rev.
enue law of 1918.
Passed to finance the great cost of
the war, the 1918 law was aimed to
take from the consumers 10 per cent.
each year on luxury and Transports
ton expenditures totalling more than
So, 900, ,000,0 900.
Under the new law the consumer will
be relieved OF direct taxation at rate
ranging from SO to IS for each person
in the United States.
The Government. however does not
stand to lose much under the new law.
Most of the articles taxed under the old
law are still taxed under the new law.
After January 1, however, the tax will
be paid in most instances by the manu-
facturer. That means, Government
economists point out. that in the long
rxrt1I s,,sf hA
same.
After January 1. however. a real saw
ing to the public will result from the re-
noval of all taxes on railroad tickets,
freight rates and express charges. These
taxes now are yielding the Government
a.most s250,000, 900 a year. At the be-
ginning of 1921 the rate Of return was
much higher. 1t slumped, however, with
the economic depression.
Pullman fares paid taxes Of s2,000,000
to $3,O0O,0O0 a month All these are re-
moved by the new law
Ice cream and other drinks mixed at
soda fountains, with soft drinks made
from cereals. are now paying s60,00O,0OO
to $70,000,000 year. These are re-
moved under the new law, but a tax is
laid on the manufacturers. Syrup that
favors ice cream soda must pay tax
Ct nine cents a gallon.
taxes have been removed and the rate
at which they were yielding are shown
as follows In the official reports of the
Internal Revenue Bureau: Musical In
struments. s6,000.000 year; sporting
goods, $4,0O0.000: chewing gum. more
than 81, 100000 toilet soaps and similar
articles, s2.500,000 life Insurance from
$4,000, 900 to $1S,000,000 year.
The new law will facilitate the sale or
q large number of fur coats and other
articles of fur for women. it Is expected.
THE law repeals completely all taxes on
articles made of fur. Taxes under this
c.ass recently have been running at the
rate Of almost $4,000, 900 a year.
Taxes will continue to be assessed on
virtually all articles of jewelry under
the new law. Only spectacies and eye
glasses are exempted in the law of 1921.
The 1918 law included these necessities
in the group of taxable articles.
The new law also retains tax on
sculpture and paintings and other ar.
objects, but the rate is reduced from
10 to per cent. Carpets. trunks
valises, purses and portable lighting
fixtures will continue to pay taxes under
the new law as under the act of 1918.
Taxes of seats at theaters are retained
by the new law. and the old rate OF
10 per cent remains unchanged Club
dues also will pay as in the past.