The Raymer enterprise., 1921-08-18
Revenue Bin Makers Find Way to
Reduce Taxes by About
Halt a Billion.
GOVERNMENT EXPENSES CUT
Income Tax Allowance for Depend.
snts Doubled-0raln Exchange
Regulation Bill Passed BY
Senate-siIssIan Question
Referred to league
OF Nationa
sy EDWARD W. PlcKARp.


generally predicted that the Repub-
iicans would be unable to 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. It now appears
they have found a way to fulfill the
promise. President Harding and the
majority leaders Of the house got to-
gether last week and agreed on Q
program by which government expen-
ditures will be cut 3516. .O00. 900. This
calls for the raising Of $3,076.0 100000
from internal taxation, which Il 1885,
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 1903. .O00. 900.
According to the agreement, saving
In the various departmental appro-
priations will amount to $4,000 900.
and a plan was devised whereby the
public debt expenditures will be ~
duced sl50.0O0.000.
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.
OF 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 tar. II was voted that
the allowance for each dependent
shall be 800 instead Of $500 as at
present. which means q greatly In.
creased exemption for the man with
I large family. A proposition to in
crease the present exemption Of 81
100 for single persons and 5000 for
heads Of families to $500 and $500
respectively was voted down. This
would have meant q loss Of revenue
II nearly fifty million dollars. An
Sther change adopted was the reduc-
lion Of the tax on very large incomes.
There will be no tax above the 81 per
cent now levied on incomes Of $685.
m-which will be q relief to about
ten thousand Of our wealthiest citi-
sens, but viii not call for cheers
rom the rest Of rs.
The committee also decided on .
complete repeal Of taxes on freight.
passenger and Pullman Transports
ton, and increased the nat corpor-
alton tax from 10 per cent to Is per
cent. In this and other respects the
committee disagreed with the .esults
Of the conference with the President,
and the changes 1t has made to date
.owsr the yield from internal taxes
to 5000, 900, 900. OF course all these
things are dependent ON further &C.
ton by the committee and acceptance
BY the house and senate.
The losses In revenue below the
present law which will result from
the program az It now stands include
A60. 0.000.0 900 from repeal Of the excess
proab tax, $O0.O00.000 from the re-
duction In the higher surtaxes. S146,-
100000 from repeal Of the tax Of 3
per cent on freight, 800, ,000, 900 from
repeal Of the tax Of 8 per cent on
passenger transportation. S8,0D.0O0
from the repeal Of the 8 per cent tax
on Pullman charges. $25,00O,000 from
the repeal Of the soda fountain tax,
S15.000,O00 from the repeal Of the
tax on proprietary medicines, besides
Z few smaller items which bring the
total up to sSsI.000.0O0.
Increases made offsetting these loss