The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-08-16
DEMOCRATS
REJECT TAX.
SCHEDULE {.
Vote SoIidly Against Change,
Terming It Bereft of Gain
r Poor Man.
By A. O. HAYWARD.
Interna tionaI News Service


bill prepared by the Republican
majority Of the House Ways and
Means Committee fails to give re-
lief to "the poorer class of taxpay-
ers," Democratic members of the
committee voted solidly against
the reporting of the bill today.
The, bill was formally reported out
by the Republican majority.
The Bill "a Reported.
Before reporting the bill the COM
mittee made the following changes:
The tax on net incomes of life in
surance companies was reduced from
is to 1914 per cent. foreign companies
to be taxed upon their earnings in the
United States, this tax replacing a tax
Of cents on a hundred dollars. for
meriy paid by the policyholder.
The tax on corporations to become
effective January /. 1922, was reduced
from is to 1874 per cent.
The tax on cereal beverages was re-
duced from IL cents a gallon to cents
a gallon.
The tax on capital assets was fixed
at Is per cent on income from those
assets above $4,000 annually.
Knock Out Back Clauses.
The committee also provided that the
Treasury ruling for determining capt.
tai gain or loss shall become effective
on January /. 1922, instead Of being
retroactive to January l. 1921.
The majority report on the bill.
submitted to the House today. de-
clares that tax revision Ia necessary
to aid busii,css In reaching q normal
basis In the process of liquidation
and adjustment going on now, but
warns that strictest economy In Gov
ernment expenditures must go with
the tax revision.
81 Per Capits Cut.
The majority report estimates
that the bill reduces the tax burden
by $3.50. 800 900, approximately 81 per
capita or $35 for the average family.
The aim of the bill is to reduce
taxes and not to shift the tax bur-
den, the report declared.
Following is a summary of estimat-
ed gains and losses by changes In the
annual receipts under the proposed
new internal tax rates for the twelve
months following application Of the
new rates:
Losses-Excess profits repeal, $780,
900, 900; individual income surtax re-
ductions, S90, ,000, 900; increased exemp-
ton Of heads of families and additional
exemptions for dependents, $40, ,000, 900;
life insurance tax repeal on policy
holders, $500; transportation taxes
repeal, $2s2, 900 900: beverage tax re-
peal, $50, 900, 900; sporting goods, So,
900. 900; candy, $4,000, 900; electric fans.
s2so, 900: furs, s4.51o. 900; ice cream
and soda water, $4,000, 900.
The Gains Shown.
Gains-Increase from corporations
on 2h per cent additional tax on net
incomes, S133, 900; license tax on
sellers OF soft drinks, $40 900, 900; cereal
beverage, $4,000, 900; carbonic acid
gas, $4,000, 900; fountain syrups, still
drinks and fruit juices, $4,000. 900;
manufacturers tax on proprietary
medicines, perfumery and cosmetics,
IS, ,000, 900.
Loss Is 100000, 900.
The total loss of revenues is placed
at s96S, ,0s0 900; total gain in revenues,
s177, ,750 900; net loss, $3.50, ,2s0 900.
Only a portion of this loss will be
reflected in collections for the fiscal
year ending June 80, 1929. AS the
repeal OF the excess profits tax and
reductions OF surtax rates on indi-
vidual incomes do not become effective
plated loss OF s4o6,250, 900 will not be
reflected in revenues collections prior
to the year beginning January 1, 1928.
Summary OF Bill.
A summary of the tax bill follows:
fective January 1, 1922.
Transportation taxes repealed ef-
fective January 1. 1922.
Express Taxes Repealed.
Express and oil pipe line trans
portation taxes repealed, effective
January 1. 1929.
Income surtaxes on incomes over