South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-09-18
Senator's ARE
" AIRY or TAX
FOR 2.75 BEER

hotels 20 pay a tax OF 10 percent on
the amount in excess Of s. charged
10 trans.ents for single rooms ana
On The amount Ia excess Of IS charg-
ed for double rooms.
The committee approved the house
provision granting the treasury au-
thOrity % issue $7.5OO.OOO.OO n
short term securities instead or
$1,000, 600. 1000. but rejected the ways
and means committee plan TO create
tax investiEauve committee %
study means Of taxing income from
tax exempt state and municipal St
curities
A new proposal adopted wc uld re-
quire the government 10 pay interest
az the rate OF one half of ore per-
cent on taxes erroneously paid AMI
refunded &C the tax payers.
fifty Other Changes.
Aside from these changes in tho
1918 revenue act. the committee
agreed 10 a hall hunder others many
OF which were incorporated IN the
house bill. An official statement IS
sued at Chairman Penrose's office
describer the more important altra-
tions which were given En- detail in
Associated Press dispatches Friday
night.
The com mittee statement showed
that il had been agreed 10 accept
the house provision repeating the
policy taxes on life Insurance and
the premium taxes Of other insur-
ance companies on next Jan. 1, and
10 impose a IS per cent tax upon
the investment income of life in
surance companies from last Jan. 1.
The present policy of income taxa
ton in the case Of the insurance
other than life would be continued.
In considering administrative secl
tons OF the house bill, the commit
tee made the following decisions:
Restored the provision of the pres
ent law permitting manufacturers
subject to taxes under section 900
and doing both a wholesale and re-
tail business to compute the tax up
on retail sales upon the basis of
their whole sale selling prices.
Provides Tax Decisions.
Accepted the provision authoriz-
ing the commission Of internal reve-
nue.. with the approval Of the sec
rotary Of the treasury and the con-
sent Of the taxpayer TO make final
settlement of tax cases.
Adopted the provision that, IL the
/ personal service corporation provis-
ions of the 1918 law are held I'M
constitutional. such corporations
shall pay the tax imposed upon 9TH
er corporations under the 1918 act,
unless they elect to pay taxes under
/ the personal service corporation
provision Of such act.
! Approved the house method Of
treating personal service corpora
tons as other corporations on and
after next Jan. /.
Protects Income Loss.
Adopted the house provision per-
hitting the deduction of a net loss
! resulting after Dec. 81. in any tax
able year from the net income Of the
taxpayer for the scheduled taxable
year and If the net loss is in ex-
cess of the net income for such
succeeding year. the amount of the
excess in the next succeeding tax
able year.
Approved the house provision au-
thorizing the commissioner Of in
ternal revenue with the approval OF
the secretary, to make regulations
reserving prior regulations without
making subsequent regulations re-
troactive.
Accepted the house provision au-
thorizing the establishment of a tax
simpliflcation board to investigate
the procedure Of and the forms used
by the bureau OF internal revenue
and 70 make recommendations foI
the simpliication thereof
Accepted the house proposal al
lowing the deduction in computin1
net income of an individual o.
amount expended for meals and
lodging by travelling men and othel
persons while away from home il
pursuit OF business.
Limited the deduction 10 individu
ais for gifts to charitable and edu
cational institutions IN computin
the net income and struck out
house provision granting a similar
deduction to partnerships and cor
, poratiOns.