Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-08-03
Exemption Is Allowed for Sums
Actually Employed as Capt.
tai in Operation of Busi-
ness,
BIG STOCKS LAID IN
CAUGHT BY NEW BILL
Floor Tax Is Laid on Sugar,
Coffee, Tea and Cocoa at
Same Rates as for Con-
sumption.

washington, Aug 2.-l9eduction
from Is to 10 per cent in the pro-
posed tax on undivided surplus of cor
porations, joint stock companies and
associations and imposition of new
floor taxes upon large accumulated
stocks Of sugar, coffee, tea and cocoa
were steps decided on today by the
senate finance committee in revising
the war tax bill. 1t is planned to
complete the bill Saturday and begin
senate debate next week.
The levy on undistributed surplus
virtually is a surtax on corporate in
comes which only pay a flat tax, al
though individual incomes are sur
taxed. Reduction of the rate to 10
per cent followed the committee
recent decision to treble the normal
corporation tax, raising $162,0O0, ,000
more revenue from that source.
Makes Heavy Reduction.
From the proposed Is per cent
rat it was estimated that $25.000,0 ,000
in revenues would result. The 10 pei
cent tax will raise much less as in
addition to the per cent reduction
the committee decided to exempt from
the 10 per cent tax surplus that is
actually invested and employed in
business or retained for employment
in~the reasonable requirements of the
business"
The new floor tax on sugar, coffee
tea and cocoa is at the same rates as
are prescribed in the bill for con-
sumption taxes on these products. The
provision was added to subject to tax
alton large stocks of these commodi-
ties imported in anticipation of the
proposed consumption taxes. Some
dealers are said to have a years sup
ply on hand which would be reached
Sugar, Y cent pound; coffee,
cents; tea, cents, and cocoa 2 to
cents. Limited amounts in the hands
of small dealers are to be exempt.
May Pay Monthly.
Important administrative provisions
affecting income and war profits
taxes approved today by the commit
tee authorize the treasury department
to permit or require monthly install
ment payment of such taxes, 1t now
being March and June 25 of each year
when they are payable. Many cor
porations have requested the monthly
installment payment privilege be-
cause of their necessity to borrow
large sums frequently for bulk pay
ment required under existing law.
Another new clause authorizes pay
ment of income and war excess prof
its taxes by uncertified checks or by
the new treasury short term certifi-
Gates of Indebtedness.
No Exemption for Farmers
A motion by Senator Gore to exempt
farmers from the new war excess
profits tax on individuals in trade or
business was rejected by the COM
mittee. -.
A new clause added to the war prof
its section provides a new standard for
calculating tax exemptions of those
claiming that their pre-war profits
were subnormal Under the plan If
the secretary of the treasury should
find exemption claims are Justified,
those claiming exemption would be
entitled to that allowed to new cor
porations not in existence before the
war whose income and profits tax
would be based upon that of COM
panies or individuals engaged in the
same general line of trade or business.