Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-08-17
CUT OF 81 PER CAPITA IS
MADE IN TAX BILL OF THE
NATION, FORDNEY SA US

ming with the calendar year 1928,
are given as follows:
Increase of corporation income
tax from 10 to IL 1-2 per cent.
January 1, 1922, S1sS,75o.OO0.
License to sellers Of soft drinks,
$40, 900, 900.
Tax of six cents on cereal bever-
ages, s12.O0O,000.
Tax of five cents on carbonic
acid gas. s2,O00,0O0.
Taxes on fruit juices, still drinks
and fountain syrups, $4,000 900.
Substitution of manufacturers
taxes on toilet Preparations ap'
proprietary medicines for exist
stamp taxes. $S.00G,uu0.
Total Loss in Revenue. eYs
The total loss in revenue isa \ I
placed at $96S,060,000 and ~
tai gains at $177,75O, 900, = /g|
the net loss of $790,330,0 d.
mated by the report. IN -
Applying to individualt tyers
the net difference of s 0,00Ol
between the losses an II, Mr..
Fordney said they nted a
reduction of 81 per !, "or
saving to the aver amily of
$35 per year."
Since the repeal u. the excess
profits tax and the reduction of
surtax rates on individual incomes
do not become effective until 1922,
Mr.. Fordney said $4O6, 100000 of
the contemplated loss of revenue
would not be reflected in revenue
collections prior to the calendar
year 1928. Discussing elimination
of these levies, Mr.. Fordney quoted |
two former democratic secretaries
of the treasury-Glass and Hous-
tomas urging their repeal, Mr.. |
Glass in 1919 and Mr.. Houston in |
1920.
To Prevent Tax Evasion.
Emphasis was laid by the chair |
man on sections of the new bill |
designed to prevent tax evasion.
He informed the house that under i
existing law the taxpayer might |
reduce his surtaxes by |
changing his fiscal, thus splitting
his annual income into two parts.
To prevent such an evasion, he
added, the bill provided that in the
case of return for a period of |
less than one year the net income
shall be placed on an annual basis
and the surtax properly computed
thereon in accordance with the |
number of months in such period. |
To prevent evasion of tax through /
he medium of wash sales" Mr..
Fordney said a section had been
,ut In the bill to limit deductions
or losses by providing that no de-
luction should be allowed for
osses sustained in the sale Of Sc
'urities where the tax payers at or
bout the time of such sale pur-
:hased identical securities.
Present Law Revised.
The provisions of the present
aw dealing with surtax evasion by
corporate organizations, the report |
aid, was revised to meet the de-
ision Of the supreme court In the L
took dividend case. There would !,
10 imposed on corporations of this
haracter a flat additional income
ak Of 25 per cent of the net in
ome, but If the stockholders
greed, they might be taxed upon
heir distributive shares in the net
ncome of the corporation in the
anne manner as memmbers of a
artnership, such taxes to be In
leu of all income taxes upon the
Mr.. Fordney said some morta-
age and investment companies had
cen obtaining exemptions allowed
v law to building and loan asso-
iations by operating under the I,
uise of such associations. To pre-
ent such evasions of tax, the
hartman explained, the exemption
ad been limited in the new bill to /,
domestic building and loan asso-
ations operated exclusively for
1e purpose of making loans to
lembers,"