South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-08-21
ATTEMPT FOR
RECOMMITTAL
OF BILL FAILS
But Nine Republicans Vote
Against Bill. While so
Favor Changes.
GOES TO SENATEMONDAY
Finance Committee 10 Hold
Additional Hearings-W
Revise Details.
BY Associated Press

WASHINGTON. Ang. 20.-The tai
revision bill OF 1921. estimated 20
cut SSlS.Q00.000 from the nadon's
tax burden by 1923. was passed late
today by the house. PA 20 I25, on
an almost straight party vote. Three
democrats supported the measure
and nine republicans voted against
IT. The democrats were. Campbeu.
Pennsylvania, and puprea and La
FARO OF Louisiana.
Republicans voting against the
bill were:
Beck, Wisconsin; Clasue, Mime
sofa; Keller, Minnesota: Lampert.
Wisconsin; NIichaelson. Illinois:
John NJ. Nelson, Wisconsin; Sinclair,
North Dakota; VoigeI. Wisconsin;
Woodruff. Michigan.
London, socialist. New York. vot-
ed against the bill
Vote for RecOmmittal.
Compared with this number OF re-
publicans. there were so who voted
for a democratic motion 10 recon
NIT the bill for elimination OF the
provision repeating the income sur
tax rates above 80 per cent This
motion was lost 100 20 go. with
one democrat Campbell. OF Penn
sylvania- voting against it,
The bill viii be sent Monday 20
the senate, where IL viii be taKen
UP after the end OF the recess on
Sept 21. Meantime the senate r.
nance cOmmitte will hold additional
public hearings on the whole tax
question and probably revise the
measure in a number o "details.
AS finally passed by the house.
with nearly 100 committee amend
ments. the bill IS estimated 10 pro-
duce a total of S3,347O0O,O 900 reve-
nue. this fiscal year. or S221.O0O.O 900
less than the estimate under the ex-
listing law. AS repeal Of the excess
profits tax and higher income surtax
rates would not become effective un-
til next Jan. 1. the fun force Of the
measure viii not be reflected in gov
eminent receipts until the calendar
year 1923, but republican leaders say
in the tax bill in the next calendar
year vii be approximately $512. OOO.-
600.
Principal Changes.
The principal changes in present
tax Ievys made by the bill as passed
include:
Repeal Of the excess profits tax
Increase Of the corporation income
tax from 10 TO 12l5 percent effect
i've next Jan. /.
Repeal Of the income surtaX rates
from 80 percent to So percent. IN
elusive.
Increased exemptions 20 heads OF
families. effective as Of last Jan. Z.
70 $500 for incomes not IN excess
OF $4,000 and additional exemption
for dependents 20 S4O0 from $500.
Repeal OF the tax on life. FIRE and
marine insurance policies and impo-
sition Of the corporation tax OF 12H
percent on all such Insurance COM
panies, except fraternaL effective
Jan. /.
Repeal Of the transportation taxes,
effective next Jan. 1.
Repeal OF the taxes on fountain
drinks. ice cream and other bever-
ages and the substitution Of man
ufacturers taxes as follows:
Four cents a gallon on cereal bev-
erages, FIVE cents a pound on car
bonic acid. two cents gallon on
fruit Juices Of soft drinks. three
cents a gallon on still drinks. exciu-
sive q mineral and table water and
ten cents a gallon on fountain syr-
ups These changes would 60 into
force on enactment Of the law.
Repeal Of the stamp tax on per
fumery, cosmetics. toilet prepare
tons and proprietary medicines. Of
fective upon amendment Of the bin.
Repeal of the ten percent tax on
baseball. football and basketball
equipments. skates. tohoggars, snow
shoes and skiIs. and reduction of 10
percent tax To five on tennis. golf
and polo equipment games and the
ike the whole 20 come into force OF
enactment of the bin
Reduce Candy Levy.
A reduction from FIVE ~ th-ee
percent IN the levy on candy, and
OF from ten 70 FIVE percent ir the
levtes on fur articles and art works.
and repeal Of the tax on electric
fans These. too. would BE- effective
when The bin becomes a law.
A reduction ~ from 10 % Eve per-
cent IN the taxes on al yachts w.th
motors or other craft less tha1 20
feet n length or ~ less than Eve
tons carrying capacity exempted
from this tax This proviH. on also
would be effective upon enactment
OF The BILL
Exemption from the income tax
% all allowances from the federal
government for the service u the
. beneficiary Of another. IN the milf
/ tary OF naval forces OF the United
/ States, effective Immediately the
bill becomes a law.
Repeal OF AL the so-caled luxury
taxes. now collected by retailers and
and substitution Of a manufacturers
tax OF five per cent on the following
, foreign articles when sold BY man
ufacturers az the sums given: Car
pets and rugs. $3.50 a square yard.
] trunks. $50 each; valises. travelling
baks, suit cases and hat boxes. SIS
each: purses. pocketbOOl1s. shopplas