Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1917-12-06
CHANCES CERT TN
! IN R7VEhUE Law
Excess Ir fits Tax on IT.
dividuals T rget of
Several Bills
HEARINGS FEGIN
EARLY NEXT WEEK

WASHINGTON. Dec 6-Revision o.
he last re' enue bill in several particu-
Jars VIII -esult from the nea~nys
hlch the House WAYS and Mean Com
'iee VIII hold next week Represen-
inire Kf hin. while declnng to admit
that the BIN would be amended and i'm
pro- ed IN many es entail features said
Yesterday that the comm ttee would
probably act IA orably uron many. II
not all. Of the recommendations to be
submitted by the special committee
which had considered the excess p otis
section This committee Is headed by
Professor T. s Adams. OF Yale Uni' err
sity. and on its membership Is Repre-
sentative Cordell Hull. regarded as an
authority on income taxes.
There serlns TO be an agreement on
both sides that 10 would be unw'sc to
attempt to revise the bill. in It's entirety
The revision which will be attempted.
therefore Will be only along the line Of
Improvement Of sections whore expert
rence has shown that injustice exists
The occupatlonal tax section, No 200, is
certain to be eliminated. at least so
far as the exemption OF the salaries OF
state. municipal and Federal employees
+. Is concerned Half q dozen bills have
already appeared, insisting upon this
exemption heinz el minated. while there
are Sc, eral bills sticking the section out
altogether objection Is raised that this
is double tax, a tax on brains and in
duetry, while invested capital is taxed
only once The profess onal man must
pay his regula income tax and the oc-
cupation tax as well as II his income
is over s6OO0 The man with invested
capital pays only the reguln income
tax
In addition 10 considering the recon-
mondatlons OF the special commit ee, the
Ways and Means members viii take up
the occupation tax section and make an
attempi to redefne capital Repre-
sen alive LongWorth will offer an
amendment to permit the corporations
10 pay the excess profits ak 10 Install
ments. the government Issuing short
time notes for the amount Of the excess
pront taxes and allowing the CO p0ra-
tions TO pay this tax In four or six
months after Il Is actually due. Under
his system they would pay interest o
the government which interest would
cover that on the short-time no es Mr..
Longworth says that such a procedure
would prevent a financial d.stu bance
and withdrawal Of capital from BUSH
ness
Another ma ter which will be consld-
cred is an amendment Of the second
class mail section Many magazines
~ and SOME newspapers have already sen
a strong petition for a hearing, which
viii probably be granted
The provision In the last bill defining
4 capital was decided upon within wenty
four hours Of adjournment and Is ad
mtted 90 be inadequate and unjust A
q result many corpo atoms which arr
capitalized at nominal amounts bu
vh CD own valuable trade marks, vii
be practically put out Of business, since
they must compute the full value OF
their Trademarks as capital. This ap-
plies especially 10 patent medicines and
like preparations.
The llN, a. d. now stands provides
against double taxation In the case OF
holding companies; that is, the com.
pany which owns the stock Of a sub
sidiary company is not compelled "a
pay taxes upon the earnings OF boil
corporations But Il develops tina
many uOlulu5 companies coullOl SUD
sidiary concerns through leases which
guarantee the stockholders certain
return on their stock. Such oompanie
are not exempt from double taxation
and this fact works a great hardship.
Senator's Penrose and Gallinger an
Simmons conferred informally witt
Representative Kiichin today. Nh
Kit.hin assured them that the Ways an
hoo D,
into the features OF the bill, which ex
perience had shown TO need som
smoothing out and Improvement.
Senator SmOot, OF Utah. offered a bill
In the Senate TO repeal Section %
and ElnIlnn. InI L. 1 100 lnnl...L.-.