Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-09-17
Senate Committee
Continued from Page One)

which individuals having incomes of
from $1,000 to $4,000 would he re-
lieved of the present sur tax of one
per cent.
Beginning with incomes of So
600 and ending with those of $40,
900 the rate in each bracket would
be reduced one per cent. In the
brackets from $4,000 to $4,000 the
existing rates would be increased
one per cent. and in the brackets
from $4,000 to $66.0O0. the present
rates would stand. Incomes of $685.
600 or more would be taxed at the
maximum rate.
planned that through this plan and
the increased exemptions allowed to
heads of families and on account of
dependents there would be a reduc-
ton of the income taxes all along
the line except in the case of single
men having incomes of 5000 or less
The loss in revenue through the
re-arrangements Of the sur-tax rates
was estimated by treasury experts at
SIS. 100000, making the total annual
loss in individual income taxes SITS
O00.0 600 including $90,00O.0OO through
reduction of the maximum sur tax
,, rates and $70,00O,OOO through in
creased exemptions to heads of
!: families and on account of depend
ents.
| Chairman Penrose announced to-
! day that in offering the bill in the
Senate he would ask that it be made
/ the unfinished business so as to
bring early consideration. He was
, of the opinion that it's passage
would not be long delayed After the
t Senate acts the bill will go to con-
ference for the composing Of differ
ences between the Senate and
! House.
i Senator Smoot of Utah, a Repub-
llcan member of the finance COM
mittee, plans to offer in the Senate
as substitute for the whole meas
ure his bill in which is Incorporated
manufacturers tax plan. This
measure has the support of a num-
Der of manufacturers associations,
representatives of which were in
conference here this week.
/ A final vote on the bill was defer
red today until next Wednesday, but
t the committee will hold another ses-
sion tomorrow to gather up loose
; ends. At that time. Senator Smoot
! will offer his substitute bill and Sem
ator Calder, Republican, New York,
plans to introduce his proposal for a
tax of So a barrel on 275 per cent
| bee.
! me committee recOnSidered TODAY
! it's decision to include in the bill a
! manufacturers tax of two per cent
on proprietary medicines and adopt
ed the House proposal to remove all
| taxes on these articles It's proposal
FOR four per cent tax on cosmetics,
perfumes and toilet articles in lieu
Of the present stamp taxes, erective
next January 1. stands. however.
The House proposal for taxing life
insurance companies was approved
except that they would be required to
pay Is per cent tax on their in
vestment incomeehective as of last
January l instead of a II IL per
cent rate. The present taxes on pre-
miums would be repealed as of next
JGnuary ]. Fire. marine and other
insurance companies would be taxed
as at present except that the higher
| corporation income TAX would be
imposed
! Besides these changes, the commit
, tee has made these revisions in the
House bill
Restored the per cent tax on
toilet soaps and powders.
Restored the ten per cent rate or
fur articles, motorboats and yachts
portable electric fans. and works OF
art which the House proposed TO Gu,
to five per cent.
Imposed a ten per cent tax or
candy selling at wholesale for more
than 40 cents a pound and accepted
the House reduction from five pei
cent. to three per cent. on all other
candies.
| Rejected the House proposal tc
exclude from the reduced tax of five
per cent on sporting goods such ar.
- 'es as baseballs. footballs and bas-
ket ball equipment, skis, skates and
toboggans.
Rejected the House proposal tc
exempt from income taxes the sal.
aries of the president and judges OF
the federal courts and the first $500
of income from investments by in.
dividuas in building and loan asso-
Citations.
/ Representatives of farm labor or.
CARNATIONS, headed by Benjamin c.
Marsh. executive Secretary of the
peoples reconstruction league and
managing director of the farmers
new council sought to get a hearing
today before the committee but
were unsuccessful.
| The delegation said it was prepar-
ed to urge k~avy inheritance and
transfer taxes to be levied immed
lately and TO WELD from $1,000, 900.
600 to $1,000. OH0. 600 every year un-
til the full cost of the war had been
paid.