Special to the Baltimore Sun
Washington DC
April 25, 1929
The Treasury department announced today that under the language of the 20th Amendment repealing Prohibition it also meant that the repeal of alcohol taxes was also repealed. Taxes will continue at pre prohibition rates.
The administration sent legislation to Capital hill today to regularize the tax situation. The legislation would result in taxes on beer being reduced by 1/2, taxes on wine reduced by 1/3, taxes on incomes under 30,000 being reduced by 60% and total repeal of taxes on Canadian goods if Canada does likewise within 90 days of the passage of the new tax bill.
In addition the tax on long distance telephone and telegraph service would be eliminated.
Tariffs to England, France, Italy, Finland, Poland, Japan, Yugoslavia and Greece are to be reduced by 15%, tariffs to all neutral powers in the great war are to be reduced by 7%, while tariffs to Germany, Austria, Hungary and Turkey are reduced by 5%. Trade to Russia would remain unchanged.
Effective July 1 wages to all active duty military personal would be raised by 20%
The treasury department noted that prior to the imposition of the income tax the tax on alcohol was the second largest source of revenue to the treasury and is worth over a billion dollars a year, based on 1916 consumption rates.
The administration noted that the new tax proposals were based on rates of consumption that anecdotally seem a great deal lower than current rates of consumption. If by July 30 there seems to be an excess of money flowing into the treasury, income taxes on income below 15,000 per year would be cut even further, as would taxes on beer and wine.
Washington DC
April 25, 1929
The Treasury department announced today that under the language of the 20th Amendment repealing Prohibition it also meant that the repeal of alcohol taxes was also repealed. Taxes will continue at pre prohibition rates.
The administration sent legislation to Capital hill today to regularize the tax situation. The legislation would result in taxes on beer being reduced by 1/2, taxes on wine reduced by 1/3, taxes on incomes under 30,000 being reduced by 60% and total repeal of taxes on Canadian goods if Canada does likewise within 90 days of the passage of the new tax bill.
In addition the tax on long distance telephone and telegraph service would be eliminated.
Tariffs to England, France, Italy, Finland, Poland, Japan, Yugoslavia and Greece are to be reduced by 15%, tariffs to all neutral powers in the great war are to be reduced by 7%, while tariffs to Germany, Austria, Hungary and Turkey are reduced by 5%. Trade to Russia would remain unchanged.
Effective July 1 wages to all active duty military personal would be raised by 20%
The treasury department noted that prior to the imposition of the income tax the tax on alcohol was the second largest source of revenue to the treasury and is worth over a billion dollars a year, based on 1916 consumption rates.
The administration noted that the new tax proposals were based on rates of consumption that anecdotally seem a great deal lower than current rates of consumption. If by July 30 there seems to be an excess of money flowing into the treasury, income taxes on income below 15,000 per year would be cut even further, as would taxes on beer and wine.