Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-11-08

income. normal and surtaX rates Ii
| was agreed that under the committed
bill only "A per cent of such gain
would have been taxable. because
such sales would have como under the
provision dealing with the taxation
| Of gain from disposition OF capital
assets.
Senator Lcnroot declared that. UNI
der the original provision. stock
gamblers in Wall Street" would have
hccn able to escape taxation on co
per cent OF their profits. He also
ccntendvd that stockholders receiving
stock dividends could CONVEX, their
earnings into cash and escape tax
alton on 60 per cent Of the gain thus
made
Offers Substitutes.
Under the amendment by Senator
Freiinehuysen. Republican. New Jer-
scy which was accepted. any trade or
business owned by partnership or
individual which was organized with
In four months after the passage of
me tax bill as corporation might.
nj the option OF the partnership or In
dividual. pay the corporation tax
on the net income received from
January /. 1921, TO the date OF such
organization II was provided. how
ever. that this option would not he
extended in the case OF any business
which realized In the taxatle year
1921 20 per cent or more profits on
the capital invested
The senate adopted. 81 to 81 an
amendment by Senator Walsh. DEM
ocra; Massachusetts. providing for n
graduated tax on transfers OF prop
crtr by gift by every person" The
rates range from ! per cent OF the
amount by which the gifts exceed
$4,000 and do not exceed $4,000. to
% per cent on the amounts in ex-
cess nf Sl0.000.000
IL &. q. y. Join Democrats.
Thirteen Republicans joined the
Democratic minority in supporting
the amendment. which il was ex-
planned. is designed to prevent
wealthy individuals from escaping
the payment OF surtax through the
division of their property among
their relatives. Republicans voting
Tor II were CapPcr. Cummins. John
son. Jones. Of Washington: Kenyon
l.add, La Toilette. Lcnroo,. McNary.
Nurheck. Norris. Townsend and
Willis.
i:y a vote OF ~ to %. the senate
rejected AN amendment by Senator
jones. Democrat. New Mexico, pro-
posing to allow partnerships and
diN!duul5 to elect whether they
should pay taxes on the net income
rom their business at the corpora
!"n or individual income rates
on tie vote. 81 To 80. the Scnat
rejected an amendment hv Senator
Kenyon. Republican. IOWA propos-
NI IAN equivalent 10 ID per cent
OF the value az tax exempt securities
transferred as parts of estates pro-
vidcd such securities were issued six
months after the passage OF the act
Previously T.! = vor, of 81 To % the
senate had rejected I'M Amendment
hN Senator La Toilette. Republican.
Wisconsin. which would have i'm
posed the same tax, and also a 10
per cent tax on tho transfer OF tax
exempt securities issued before the
passage of the act
Smnht Bring. In SnIe. Ink.
Senator Smoot. Republican. Utah.
brought up the sales tax again to-
night. proposing his original 2 pcr
cent manufacturers levy with 10
Nnr cent corporation tax. a 80 per
cent maximum income surtaN rate.
md n capital stock tax. 1t was re-
''N"u N'tNbit Il record vote.
Recon sidcrinr It's former action,
the Senate voted to allow original
purchasers of Liberty and Victory
bonds an exemption equal 10 the in
tcreSt on money borrowed to pur-
chase or carry those bonds. The
Senate previously had agreed TO al
low an exemption only on the differ
cnce between the interest on the
money borrowed. and tho amount OF
interest rcco ived from the bonds.
ON motion OF Senator Reed the
Senate voted 30 to 81 to strike out
IN" Lodge amendment allowing
holding companies TO deduct from
their capital stock tax tho amount
az such tax paid on the stock OF
their subsidiaries.
KIN Excess Profits Tar.
Another effort 10 continue the OK
cess profits tax after this calendar
year failed. the Senate rejecting 80
10 30. an amendment by Senator
Reed, proposing tax Of 20 per cent
an net ~ OTIS Of corporations In OK
CcsS at 30 per cent Of the invested
capital rhc amendment was sup
ported Is seven Republicans, Cap
per. Johnson. Kenyon, La Toilette.
McNary. Norbcck and Norris.
Then OH motion o. Senator Pom
erencc, Democrat Ohio. the Senate
Fot"i. ~ To %. to make the capital
stock tax on all corporations the
same as at prcsent-one dollar on
each $1,000 Of capital stock in excess
of $4,000.
In rapid succession the Senate re-
iccted three amendments proposing
changes In the corporal ton income
AK rate OF Is per cent previous
ly agreed upon The first amend.