Arizona republican., 1921-08-16

vum,endeo Wo,,,a that 5 per cent increase Proiits and the surtax were inposed TOT tnis taxable year.
 |. me tax measure as presented in
 muse today is a bill ito reduce Iu equallze taxation, to amend and snpll.y the revenue act of 1918. and TOT other purposes
 Mucn of it's 16,000 odd words of seAt IS devoted to amendments of the tumlnistrative and definitive sections tne present law which were draft V py treasury experts with view .o Siarifying specific portions of the ts1e act and meeting situations aris- tng from decisions of the supreme court.
 Incrsass Exemptions
 Aside from the revisions of the levy uections already referred to the bill proposes repeal of all of the trans portation taxes effective next Jan. 1, increased Exemptions to heads of Amilies and married men having in eomes of less than 5000, decreases in The levies on candy, sporting goods, turs and art and art works; the sub Ititution of manufacturers taxes on the so-called nuisance and luxury ievies, and other changes details of l Associated Press dispatches
 Additional revisions include ex- emption from taxation of the salaries of the president of the United States and the judges of the supreme and in- eerior courts and also amounts re- ceived by individuals as compensa- tion, family a1lotments and allow ances under provisions of the war rick insurance and vocational re- Mobilization acts.
 4 change also is made in life in- surance company taxation, the bill requiring them to pay the normal cor poration tax in lieu of the levies on policies when written and all other present taxes except the corporation stamp tax and certain stamp taxes. Foreign life insurance companies would pay on the net income from sources within the United States
 Another important section of the new bill outlines general plan to tax American concerns doing practic- ally all their business in foreign countries only. on the income received from American sources. They now which is contended to place them at . disadvantage with competing for eien houses.
 Personal service corporations. freed by the supreme court from corpora tion taxes, would be brought speci- fically under the corporation income tAx by the bill.
 Exsrpt Coop. Organizations
 Exemption from taxes would be granted to farmers operative pur- chasing organizations as we'll al sell tng examinations where the materials purchased are turned over to the members of the organization "at ac- kual cost plus necessary expenses.
 Under the amendment to the es- tate tax sections of the present law amounts receivable as insurance upon the life of a nonresident decedeEt and any moneys deposited in any hank. banking institution or trust company in the United States. by or for d nonresident decedent who was not engaged in business in the United States, at the time of his death, would te exempt from taxation.
 Other provisions provide that nc amusement tax shall be levied on Admissions all the proceeds of which lnure exclusively to the benefit of persons in military and naval service Dr to persons who have served m puch forces and are in need; that the Jewellers tax of five per cent on eye tlaeses and spectacles, and the man
  portable electric fans, shall be re- pealed and that a tax of 10 per cent phall be imposed in lenses for ca. meras weighing not more than loo pounds.
 Among amendments to income tax provisions is one permitting after Dec. 31. 1920, deduction of net loss from income of the succeeding tax Able year. If the net loss Is in ex- cess of the net income for the. next kaxab1e year, the bill provides thai the amount of such excess shall bt allowed as a.deduction in computing net income for the year. For the pres ent losses must be taken for the veal of which a return is made.
 On Stock Dividends
 Another amendment drawn to mee a supreme court decision. provide specifically for the exemption 0 stock dividends from taxation. bu says "a distribution made by cor poration to it's shareholders or mem bers shall be included in the gros income of the distributes as of tn date when the cash or other propert is unqualifiedly made subject to thei demands.
 Among legislative features in tn bill is one giving the secretary of tn