The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-10-18
Senate Committee Yields to
Pressure From Financial
Groups of Big Cities.
SUBSTITUTE Is SOUGHT
President and Other High Off
Gals Specifically Exempted
From Provisions of In
come Levy.

Washington. Oct 1.-THE specific
provision in the revenue bill impos-
ing the payment of an income tax
upon tho president of the United
| States, justices OF .ke supreme court
and junEes OF all the inferior courts
was stricken out by the senate A.
nance committee today. The tax on
state, county or municipal bonds also
was eliminated
BY striking out the language in the
bill which named the president and
the judges as among those who should
pay the tax. the measure Us left ex-
actly AZ the existing law in its an
plication to personal income from any
source. President Wilson always has
paid his income tax, although not re-
quired specifically 10 do so. The
house bill sought To make the pay
ment by the president and all other
federal and state officials mandatory
so that none should be exempt.
The elimination of the section i'm
posing a tax on the interest on bonds
| issued by a state or any political sub
| division vas in response to a very
widespread protest from state and
city officials. New York. Chicago. San
! Francisco and other cities sent rep
| re.entatives to the senate committee
to protest against this feature of the
| house bill.
! Senator simmons. chairman of the
finance committee. said that in strik-
! ing out these provisions the commit
tee had decided upon nothing to &C
| in the bin TO replace them. What.
ever amount OF revenue may be los,
through the excelsior will be made UT
| on other rates In the bill
! The committee changed the section
which gives exemption to persons in
| the military or naval forces by re-
] storing II to the form in which /,
/ passed the house. The section wa.
changed ut an earlier session of the
senate committee 70 a. to limit the
| exemption to soldiers and sailors &C
tually in the field; this restriction was
removed SC as to make the exemp.
! ton general up to $4,000.
| Senator Simmons announced. how.
ever. that the committee intends Il
| devise some method of differentiat-
ing between ofYicers actually in ser.
vice AMI those known as "swivel
! chair" officers. so that the latter will
not receive any exemption.
An important amendment to the
definition of the income tax provisions
was made by the committee. It Ii In
/ the form OF a new section which
WoUiu permit CORPORATION or 01neI
! tax payer who had a net loss durine
| tho taxable year to deduct the amount
OF this loss from the taxable income
for the succeeding year. This deduc-
ton may be made on net losses dur.
Ing the years from December 81
1915. to December 81. 1918.
At the same time provision is made
for the refunding 10 tho tax payer
of any net loss that may be endured
In any taxable year after January /.
next.
The new section which the COM
mittee adopted Is as follows:
Section eos. fa) That "a used In
this section the term net loss, refers
only 70 net losses resulting from
either (1) the operation Of any busi-
Meas regularly carried on by the tar
payer. or t3) the bona flde sale BY
the tar payer Of plant, buildings, ma
chinsry, equipment or other facilities,
constructed. Installed Or acquired BY
the tax payer on or after April 8
1917. for <the production Of articles
contributins to the prosecution Of the
present war; ana whAn - rssuItinn
meanD tho excaeg % tho DISTINCTIONS
alloMsA ~ Nv (exciudlnx ~ fAa case
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