New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-17
New Tax Bill
To Save Each
I amily $35

parts. TO prevent such an evasion, he
added, the bill provided that in the
case Of a return for a period Of less
than one year the net income shall be
placed on an annual basis and the sur
tax properly computed thereon in ac-
cordance with the number Of months in
such period.
TO prevent evasion of tax through
the medium of "wash sales" Mr.. Ford
ney said section had been put in the
bill to limit deductions for losses by
providing that no deduction should be
allowed for losses sustained in the
sale of securities where the taxpay-
crs at or about the time OF such sale
purchased identical securities
The provision of the present law
dealing with surtax evasion by cor
poration organization. the report said,
was revised to meet the decision Of
the Supreme Court in the stock divi-
dend case. There would be imposed on
corporations Of this character a fat
additional income tax Of 90 per cent
holders agreed they might be taxed
upon their distributive shares in the
net income Of the corporation in the
same manner as members OF part
nership, such taxes to be in lieu of
all income taxes upon the corpora
ton
Mr.. Fordney said some mortgage and
Investment companies had been obtain
ing exemptions allowed by law to
building and loan associations by op-
Grating under the guise of such asso-
Citations. TO present such evasions of
tax the chairman explained, the ex-
emption had been limited in the new
bill to domestic building and loan
associations operated exclusively for
the purpose Of making loans to mem
bers"
The Democratic caucus began in the
late afternoon and after a recess was
continued tonight. Representative
Kitchin, ranking Democrat on the
Ways and Means Committee, who is
detained at his home in Scotland Neck,
North Carolina, by illness, sent tele-
gram to the caucus, urging solid Demo
cratic opposition to the Republican
measure. He has been kept fully in
and events during it's preparation and
expects to review it in a message to
be sent to the Democrats Tomorrow
Ways and Means Committee Demo
rats in preparing their minority re-
port, which they have until Friday to
file, will make use, it is understood. of
especially prepared tables showing
comparative taxes under the present
law and the Republican measure. They
will undertake to show that individuals
having incomes ranging from $4,000 to
SG6, 900 a year, will pay the same taxes
as at present, whereas those having
incomes Exceeding $4,000 will get re-
auctions ranging from l per cent to
so per cent.
The Democratic report also will as.
scrt it is said, that corporations hav-
ing net profits of from 5 to 10 per cent
viii pay as much or more under the
proposed 1912 per cent corporation tan
as they do under the excess profits and
10 per cent corporation taxes, while
corporations making Is per cent OF
more will get reductions on a gladu-
ated scale, which will amount in some
cases to as much as IS per cent.
Representative Frear, of Wisconsin
Republican member Of the Ways ann
Means Committee, plans to file sap
Elemental majority report. suggesting
taxation of the undivided profits OF
corporations and other sources OF
wealth as recommended to Congress
last year by Secretary Houston. 1t is
understood that Mr.. Frear's purpose is
not only to bring these matters to the
attention of the public, but also to the
senate Finance Committee, which is tc
take up the bill soon after it's passage
by the House so as to have it ready for
the Senate when the proposed recess
OF Congress ends late next month.