Evening star., 1921-08-16
House to TaketUp Measure
Tomorrow for Discussion
Of Draft.
Estimated Revenue Provided
About $4,000, COO, 600; Tax
Reduction Figures.

The tax revision bill. ito reduce.
equalize and simplify" the present
taxes. was formally reported to the
House today by the ways and means
committee. 1t viii be taken up for
consideration tomorrow under a spe-
cial rule and passed on Saturday.
The bill was introduced in the
House late yesterday by Chairman
Fordney of the ways and means COM
nlittee. following its consideration by
the republicans In party caucus. -
The democrats of the House will
meet in caucus this afternoon to de-
termiae what their attitude shall be
toward the measure. A minority re-
port by the democratic members OF
the ways and means committee may
be filed.
Last.Minute Change.
A last-minute change In the bill.
ordered by the republican caucus.
makes the repeal Of the excess pronts
tax and the income surtax rates In
excess Of 80 per cent effective January
l. 1922. instead of January l. 1921.
This action upset the plan deter
mined upon at the recent White House
conference, where 1t was decided to
make the repeal of these taxes retro
active to January l. 1921. Republicans
from the western states led the ngnt
it was a motion by Representative
Mann Of Illinois. fixing the date OF the
repeal as January /. 1922. that was
finally adopted by vote of s6 to 81.
The change carried with 1t instruc-
tions to make the new Increase In the
January 1. 1922. also. This increase
was from the present 10 per cent to
Is per cent. But the ways and means
committee. before Chairman Fordney
introduced the bill, cut the proposed
increase in two. so that the corpora.
of Is per cent. as originally proposed.
Revenue to Exceed Estimates.
The postponement Of the repeal Of the
excess profits tax and the higher sur
taxes on incomes means that about
5000. .000. 900 in excess Of the expected
revenues under the bill will be paid into
the Treasury next year. covering busi-
fore. decided to slash the increased tax
on corporations. which was designed to
make up the loss Of revenue from the
repeal Of the excess profits tax. etc.
The tax bill as prepared by the re-
Of & the House ~" ls oeS s1peetsd to
and to reduce the nations tax burden
by about $500. .000. 900 next year. General
debate on the bill. after the adoption
Of the special rule tomorrow. will run
until Thursdays adjournment OF the
House: After that the bill will be con-
sidered under the five-minute rule for
amendment. The bill and all amend
ments are to be voted on at pm.
Saturday.
Bfl's Provisions.
The tax measure as presented in the
House is entitled "A bill to reduce and
eQualize taxation, to amend and simplify
the revenue act of 1918. and for other
purposes" Much Of its 16.000-odd words
administrative and definitive sections Of
the present law. which were drafted by
Treasury experts with a view to Clarity
ing specific portions Of the 1918 act and
meeting situations arising from de-
cisions Of the Supreme Court.
Aside from the revisions Of the levy
sections already referred to. the bill pro-
poses repeal of all Of the transportation
taxes. effective next January; increased
exemptions to heads OF families and
than 5000. decreases in the levies on
candy, sporting goods, furs and art and
art works: the substitution Of manufac-
turers' taxes for the so-called nuisance
and luxury levies and other changes.
Additional revisions include exemp-
ton from taxation Of salaries OF the
President of the United States and the
Judges Of the Supreme and inferior fed
eral courts, and also amounts received
by individuals as compensation. family
sions of the war risk insurance and
vocational rehabilitation acts.
Change Insurance Taxes.
A change also is made in life in
surance company taxation, the bill
requiring them to pay the normal
corporation tax in lieu Of the levieg
on policies when written and all
poration stock tax and certain stamp
taxes. Foreign life insurance COM
panies would pay on the net income
from sources within the United
States.
Another important section of the
new bill outlines general plan to
tax American concerns doing prac-
tically all Of their business in for
eign countries only on the income
received from American sources. They
now are taxed on their entire income,
which. it is contendrd. places them al
eign houses.
Personal service corporations. freed
by the Supreme Court from corpora
tion taxes, would be brought specific
ally under the corporation income tax
by the bill. and provision is made
1918 act on Individual stockholders
of such corporations should be de-
clared invalid there shall, in addi-
tion to all other taxes, be levied. COL
lecred end maid on the. net incom"
received during the calendar years
1918. 1919 and 1920. by every personal
service corporation" tax equal to
the taxes imposed under the excess
profits and income surtax provisions
Of the present law.
Exemption from taxation would be
granted to farmers cooperative pur-
chasing organisations, as well as to
selling organizations, where the ma
terials purchased are turned over to
members Of the organizations "at ac-
tual cost plus necessary expenses"