The New York herald., 1921-11-19
INHERITANCE TAX
INCREASE BLOCKED
Senate Amendment Knocked
Ont of the Bill by Con-
fcrees.
so P. C. SURTAX MAXIMUM
Harding Disappointed Oven
Action of House in Adopt
ing Rate.

WASHINGTON, Nov 1S.-The Senate
amendment proposing to increase the
maximum inheritance tax rate from the
present 25 per cent en- estates valued at
Sl0.000.e00 or more to so per cent. on
those of s100000,000 or more was
knocked out of the tax revision bill to-
day by House and Senate conferees.
This amendment formed a part of the
compromise revision programme brought
forward by the Senate agricultural bloc
and agreed to by Republican leaders.
This was the only one of the remain
ing high spots" in the bill on which the
conferees came to an agreement to-day,
but the House managers, in conformity
with instructions voted yesterday by the
House. accepted the Senate income sur
tax maximum rate of so per cent. At
the White House to-day it was said that
President Harding was frankly disap-
pointed by the House action on the
surtax amendment, and this disappont-
ment was reflected in other Administra-
tion and in some Congre essional circles.
The House managers accepted to-day
the Senate plan of taxing insurance
companies. This plan provides that the
life insurance companies shall pay an
income tax on investment income at the
rate yet to be fixed for corporations.
Mutual insurance companies other than
life will be taxed at the same rate on
their net income computed under exist
ing law. while all other insurance com
panies will pay the corporation tax rate
on their net income as shown in state
ments required to be furnished on stand
ard State forms to State Tax Commits
sioners.
Other agreements reached by the con-
ferees included these:
Struck out by the La Toilette amend
ment requiring taxpayers in making
their returns to list the tax free securi-
ties held by them.
Adopted a compromise amendment eX-
empting from taxation the first $500 of
income received by individuals from
investments in building and loan asso-
Citations. the exemption TO run for five
years from next January l. The House
had proposed an exemption on $500 of
such income. but the Senate struck out
the amendment.
Accepted the Senate amendment strik-
Ing out an original House provision
allowing corporations to deduct from
their income gifts to charitable organi-
cations, provided the total does not ex-
ceed 5 per cent. of the net income of the
contributing corporation.
Accepted Senate amendments provid-
ing that where banks and corporations
may deduct the amount so paid in maxi
ing their income tax returns. The stock
holders for whom taxes were so paid
would not be permitted however, to
make a similar deduction in making
their returns.
Accepted a Senate amendment eX
empting from taxation the rental value
of dwellings furnished to a minister Of
the gospel as part of his compensation.
Accepted a Senate amendment eX-
empting receipts received by individuals
from shipowners' mutual protection and
indemnity associations not organized
for profit.
Chairman Penrose of the Senate man
ayers said the conference expected to
finish their work tomorrow, but that
the amended bill with the conference
report probably could not be made ready
for presentation to the House and
Senate before late Monday. Final ac-
tion on the report might be taken by
Wednesday evening. Senator Penrose
said. but he added that this now looked
doubtful.