Evening star., 1921-11-20
TAX BILL PASSAGE
SOUGHT THIS WEEK
Plan to Rush Measure
Through House That Senate
May Have Two Days.
ONLY FIVE SIGN REPORT
Conferees Differ Over Bill, Demo-
Gratis Opposing and Smoot
Withholding Opinion.

"AG00oA0AAS Vplu1Uu.
The tax revision bill came through
its third rewriting yesterday and will
be returned to the House tomorrow.
Republican leaders are hopeful that
the final step in its enactment can be
taken in time to permit Congress to
end its special session Wednesday, as
planned.
Only FIVE os the ten conferees on
the bill have signed the conference
report. The democrats refused to
sign and one of the six republican
managers. Senator Smoot of Utah.
his signature. He said 1t was his in
tention to study the bill to see
whether it was any improvement over
existing law before reaching a de-
cision as to giving it his approval.
Opposition to some features Of the
bill is expected to develop in both the
House and Senate. House leaders
plan. however, to put the bill through
the House tomorrow after four or five
hours of debate. SO that the Senate
VIII have two days to consider 1t be-
fore the time now tentatively fixed
for adjournment of Congress.
No Organized ODDositisa.
Leaders of the republicans in the
House who bolted on the surtax
amendment said yesterday, that while
some republicans were opposed to the
action of the eapferees in ftriking out
Senate amendments providing for in
creased inheritance taxed and for
making income tax returnsexatlAPle
~ Congress, there would be no Or
sanized opposition to the bill.
Sentiment in the Senate apparently
hadsGot crystallized last night, but
leaders anticipated considerable dis
Der. Should Senator Smoot decide
finally not to sign the conference re-
port it is his stated plan to present
his reasons in an address to the Sen.
ate.
In winding up their work on the
ayers fixed the corporation income
tax rate at 12k per cent. the figure
in the original House bill. This in
creases the present rate by IA per
cent. but is 2h per cent below the
figure agreed upon by the Senate.
Liquor Tax, &2.2O.
In lieu of the wadsworth amend
ments taxing indu ustrial alcohol and
beer. wine and whisky used for medi-
to the original House provision re-
lating to liquor taxes. This retains
the present tax Of $500 a gallon on
distilled spirits, with a provision for
an additional tax of $4.20 a gallon on
such spirits diverted for beverage
purposes This tax would be paid
by the person responsible for such
diversion"
The conferees retained the Senate
amendment repeating the normal ex-
emption of s., 900 allowed corporations,
but the repeal would not apply in the
case Of corporations having net incomes
The Walsh amendment proposing
tax ranging from / per cent to Is per
cent on gifts Of property by persons was
This was designed, accord.
ing to its author. to prevent evasion OF
the surtax by wealthy individuals divid-
ing their property among their relatives.
A new provision for taxing gain from
the sale Of capital assets was written
into the bill. 1t Is limited to individuals
and provides that il the taxpayer elects
to make a separate return for the tax
capital assets he shall pay tax on the
gain at the corporation income rate of
1919 per cent on the total Of the gain.
The Lenroot amendment excluding
stock of corporations from capital as
sets to be so treated was eliminated.
The managers retained the Senate
amendment imposing a tax of cents
gallon on fountain syrups used in the
manufacture of carbonated beverages
prepared for sale in closed containers.
This is in addition to q tax Of cents
a gallon on such beverages.
Revenue Cut $50, 900, 900. .. =.
In reducing the proposed corporation
income tax the conferees reduced by
$130, ,000, 900 the estimated return from
the bill. Treasury experts had calcu-
lated that the Senate rate would yield
$3.50. 000, 900 additional from the corpora
tions, the increase through this source
being designed as partial offset against
the loss of $450,000.O00 to result from
repeal Of the excess profits tax.
Repeal Of the gifts tax amendment
and the change in the taxation OF dis
titled spirits also resulted in further
cuts in the estimated revenue, but ac-
curate figures were not obtainable Some
estimated were that from $3.50, ,000. 900 to
5000, 100000 had been cut from the bill,
which, as it passed the Senate. was de-
signed to yield approximately $3, 300, ,00o-
600, or slightly less than the total Treas
ury officials told the Senate finance
committee in September would be
necessary for this fiscal year.
Chairman Penrose of the Senate man.
ayers. however. said the bill as finally
amended by the conferees was ''entirely
adequate" for the immediate revenue
needs Of the government, but he would
make no estimate as to the total yield.