The evening world., 1920-04-27
TAX
. ON PROFITS TOPAY
BONUS TO SOLDIERS
Johnson-Rainey Bill Would
Take 8o% From Indiyid-
ualS and Corporations.
HOT FIGHT EXPECTED.
Measure Will Come Up for
Vote During the Com
ing Week.

lspecial from q STAT CorrssP2udent Of The Even
WASHINGTON. April "a. = The
Johnson Rainey bill to raise revenue
for the soldiers bonus appropriation
provides that In addition to all other
taxes there shall be levied upon the
net income Of every individual and
corporation for the taxable year 1920
a tax equal to so per cent. OF war
profits.
1t is provided that the tar imposed
on net incomes Of individuals or cor
porations shall In no case be greater
chan an amount which. together with
the income, war profits and excess
profits taxes imposed by the revenue
act OF 1918 upon the net income. Of
individuals or corporations for Ohe
taxable year 1920. equals so per cent
OF such net income. This feature Of
the prq'psed law does not apply TO
indiyid Is whose net Incomes for
1917, 1918 and 1920 does. not exceed
$4,000 nor to any corporation whose
average net income for 1917, 1918, 1919
and 1920 does not exceed 100000.
In the case Of an individual the
term ''wur profits" is defined as the.
amount which hls average net in
come for 1917. 1918, 1919 and 1920,
less his average income, war profits
and excess profits taxes for such
years, exceeds his net income for the.
taxable year l9l4
In the case Of a corporation war
profits" means the amount by which
its average net income for taxable
years 1917, 1919. 1919 and 1920, less
its average income, war profits and
excess profits taxes for such years,
exceeds it's average net jncome for
the pre-war period, PLUG or minus as
the case may be. 10 per cent. OF the
difference between its average invest
ed capital for the pre-war period and
It's. average invested capital for the
taxabfe Years 1917, 1918, 1919 and
1920. In the case of corporation
not in existence during the whole OF
any one year during the pie-war
period the term "war profits" is de-
fined as the amount by which ta
average net income for the taxable
years 1917 1918. 1919 and 1920, less
its average income, war profits and
excess prchte taxes for such years,
exceeds 10 per centum OF its average
invested capital for the taxable years
1917. 1918, 1919 and 1920.
1t is fuTther provided that the tax
imposed 10y this act shall be returned,
assessed. collected and paid upon the
game basis, In the same manner, and
subject to the same provisions Of
law, Including penalties, as the taxes
| imposed by titles two and three of
the Revenue Act OF 1918. and at the
same time as therein provided for the
| return and payment. OF income taxes
for the taxable year 1920.
The Commissioner Of Internal Rev
enue is authorized 10 grant u deason-
able extension OF time for the pay
ment of the tax whenever in his Judg-
mentsgood cause exists.
such extensions are limited to
| twelve months In case an extension
| OF time is granted, the tax payer
shall pay in addition TO the tax due,
| Interest at the rate of per cent OH
the amount OF each instAllment not
| paid' from the time the installment
was due.
The term Corporation" as used in
the Act includes associations, Joint
| stock companies and Insurance COM
panies the term 'taxable year
means the calendar year, or the fis.
cal year ending during such calendar
year, upon the basis of which the net
income W computed.
The term "prewar period" is de
fined as meaning the calendar yea
1911, 1879 and 1913, or " corporation
was NOT in existence during the Who'll
Of such period, then as many Of sucl
years during the whole ot which tn
corporation was in existence.
It is expected that the snldier rbonu
} win be completed by the sub-commit
tee Of the House Ways and Mean
Committee by Friday.
According 10 present plans, Il wi
be presented Immediately 10 the Who'll
committee. II Is expected that IN
fun committee viii approve the bi
without delay 3nd rGDprt II 30 III
House on Saturday. The leaders pla
> TO have tho HOUSE act on the bil ueN
| week, A sharp fght is expected o
the floor between the organi2atio
Republicans and certain insurgent
I led by Representative Royal Johnso
and supported by the Democrats, ov,
the method OF raising the neccssaI
revenue TO meet the bonus apprpprii