Omaha daily bee., 1921-08-08
Committee Plans
Big Increase In
Corporations Tax
House Members to Begin Work
Of Revising Levy Provis.
ions in Fordney Meas
ure Monday.

Washington, Aug. 7. -- Majority
members of the house ways and
means committee expect to get
down to brass tacks on tax revision
this week.
Chairman Fordney said today that
the rewriting of levy provisions IN
the 1918 law probably would begin
Monday and that unless an unex-
pected snag was encountered, the
new bill should be ready in 10 days.
Leaders generally say house consid-
ration will require only few days.
The work before the republican
committeeman is to determine the
ertent of the cuts possible and just
where they are to be made. The
general belief seems to be that the
committee bill will propose repeal OF
the excess profits tax, but the et-
fective date remains to be de-
termined.
AS a substitute for the excess tax
it is planned to increase the cor
poration income tax from 10 to Is
per cent and also to repeal the 81
900 exemption allowed corporations.
Chairman Fordney said today, how
ever, that it might be necessary to
make some specific provisions IN
the bill to relieve the burden 1t has
been claimed this would impose ON
the small corporations. .,-
May Add Provision.
He also disclosed a proposal to
write into the bill a provision tax
ing the income of the so-called per-
sonal service corporations, such as
architectural firms not incorporated,
the same as the income OF other
corporations. The supreme court
has held that the present law is
not applicable to such concerns.
Mr.. Fordney also said It was not
proposed to relieve public service
corporations from a part of the -
per cent income tax provisions OF
the bill.
Aside from revision of these levy
sections, the minds of many COM
mittee members are turned to re-
peal of the higher income surtaxes.
of all or part of the transportation
taxes and of the ice cream levies.
However, the actual revisions are yet
to be agreed upon with indications
of some fights in the committee.
See Way to Cut Taxes.
1t was estimated by some that I'M
mediate repeal of the whole trans
portation tax, the soda water tax
and the higher surtaxes, together
with the $55,000,0O0, which the treas
ury experts figure will be lost this
fiscal year through repeal of the ex-
cess profits taxes as of January |,
would approximate the $5O0,0OO,OOO
cut house republican leaders insist
can be made in the tax levy.
With such a reduction, the taxes
to be paid this fiscal year ~'ould
approximate S3,070,000,000 on the
basis of treasury estimates presented
to the committee, and would include
S235,O00,000 estimated back taxes.
In addition to this income, the treas
u.y figures customs receipts under
the proposed new tariff law at $780,
100000 and income from miscellan-
cous sources at about $350,000, 600,
making total of $3,790,O00,OOO as
against an outgo estimated in the
treasury statement at $4,554,000, 600.
Supporters of the tax cut declare,
however, that the apparent, deficit OF
S7o4, 100000 would be greatly, de-
creased through additional collections
in back taxes, estimated at probably
500, 100000, a larger income from
miscellaneous sources and decreases
in expenditures. including those on
account of the public debt and the
various federal departments.