Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-01-10
SEVERAL CHANGES
IN REVENUE BILL
Senate Conferees Recede From
Amendment Requiring Re
turns on Gross Income Basis.
DtFFERENTlAL is ELIMINATED
Committee Puts Flat Rate of II
Per Cent on Net
Incomes.
DIFFERENTlAL is ELIMINATED

WASHINGTON. January o.-House
ccnterees on the revenue bill to-day
| made by the Senate affecting the ad-
mihis;rativc features Of the bill Two
mendments proposed oy the House
Tsrre. wrae agreed to by the Senate con
days conference was:
!. me Senate confcrees receded
from the amendment requiring returns
to be made up on gross Income basis
anu agreed to the House provision for
making returns on net income basis.
:. The House agrees to the Senate
!heht payments of income taxes. with
minor amendments. The House bill
PROVIDED for payment Of the income
taxes in three equal installments.
.. Inc House agrees TO a Senate
ainendment eliminating the per cen.
oiferential on corporate income taxes,
ana the senate agrees to an amend
incnt changing the corporation income
( tax after 1918 from 5 per cent to 10
per cent
The 1915 corporate income tax will
De : per cent as in the Senate amend
COKPORATION AMENDMENT
IS FINALLY AGREED TO
4. The House agrees to the Senate
personal service corporation amend
| inent, with an amendment providing
that :: corporation. 90 per cent or more
or whose gross income consists OF
gains. profits or commissions derived
IRON government contracts, shall not
be treated as a personal service cor
poratton.
8. The House agrees to the Senate
amendment defining dividends" with
an amendment making minor changes
The amendment by which the differ
ential on corporation income is def I.
nitely eliminated from the bill is a
distinct victoey for the Senate. The
oy tho House Ways and Means COM
| inittee' and was stubbornly defended
ny members OF that committee i'll all
The debates on the measure. it pro
| vided for n tax of Is per cent on all
the net income OF corporations. ex-
cept mat on the amount distributed to
9 per cent. This difrerential was all
lowed upon the theory that it would
tend to encourage the distribution of
oRG4SIzEEn eotG.sSi 81 musfssssp Iapsf sssporations.
orPosED DIFFERENTIAL
organized business OPPOSED thes dit- :
SSthiia, tSat i yoniI nGiIwexGr upon the ground
porated industry. The Senate com
tHittee struck it out and put in a Nat
rate OF II per cent on the net income
: IN excess Of the credits provided for In
other sections of the bill
me amendment suggested by the
s,na, s.."use c0niierees ,1i and agreed to by the
senate 20 nxing the corporation rate of
ls20 p!an." which the Democratic ma
jority In the Senate wrote into the bill!
ioF the purpose of ehecting reductions
IN the amount OF revenue collect ed
during the fiscal year l9ls-20 10 81 600 :
epe.oo". Under the 1920 plan as adop-
tea by the Senate. the corporation tax
rate on incomes would have been )
per cent. but as "a concession to the
House for rcceding from the differen-
ia! provision, the Senate qonferees
agreed TO raise the rate to 10 per cent.
me conierecs made rapiI progress
on the bill to-day While the-e NAV
d" some disagreement over the eX-
cess pTohis provisions, the manner in
which the amendments were disposed
or to-day indicates that the bill will
be ready for iinal action by the two
houses within a few MeelsS