South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-11-08

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the provision dealing with the taxa
ton OF gains from disposition Of
capital assets.
Sen. LenrO0t declared that under
the original provision stock gam
blers in Wall street" would have
been able 20 escape taxation on 60
per cent Of their profits He also
oontended that stockholders receiv-
ing stock dividends could convert
their earnings into cash and escape
taxation on go per cent Of the gain
thus made.
Under an amendment by Sen.
Frennghuysen. republican. New Jer-
sey, which was accepted, any trade
or business owned by a partnership
or individual which was organized
within four months after the pass
age OF the tax bin as a corporation
might at the option OF the partner
ship or individual pay the corpora
ton tax on the net income received
from Jan. 1. 1921. to the date OF
such organization.
Il was provided. however. that
this option would not be extended in
the case Of any business which real
ized IN the taxable year 1921 20 per
cent or more profits on the capital
invested.
Walsh Measure Adopted.
The senate adopted, 80 10 81, an
amendment by Sen. Walsh, demo-
crat. Massachusetts,. providing for a
graduated tax on transfers Of prop
erty by gift by every person" The
rates range from one per cent OF
the amount by which the gifts ex-
Deed $40. 600 and do not exceed $780,
600 20 25 per cent on the amounts
in excess OF 100000.
Thirteen republicans Joined the
democratic minority in supporting
the amendment. which it 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 for IL were
CapDer. Cummins. Johnson. Jones
OF Washington, Kenyon, Ladd, La
Toilette. Lenroot, McNarry. Nor
beck, Norris. Townsend and Willis.
By a vote Of 81 to % the senate
rejected amendment by Sen. Jones,
democrat, New Mexico, proposing to
allow partnerships and individuals
20 elect whether they should pay
taxes on the net income from their
business at the corporation or indi-
vidual income rates.
XIII Lodge Amendments.
On motion Of Sen. Reed, the senate
voter 80 20 81 10 strike out the
Lodge amendments allowing COM
panies to deduct from their capital
stock tax, the amount OF such tax
paid on the stock Of their subsi-
daries.
Brings Up FAX Bill.
Senator Smoot republican, Utah,
brought up the sales tax again Mon
day night. proposing his original
three per cent manufacturers Levy
with a ten per cent corporation tax,
a So per cent maximum income sur
tax rate, and a capital stock tax. 1t
was rejected without a record vote.
demonstrating its former action,
the senate voted 10 allow original
purchases of Liberty and Victory
bonds an exemption equal to the
interest on money borrowed to pur-
chase or carry those bonds. The
senate previously had agreed 10 al
low an exemption only on the differ
ence between the interest on the
money borrowed. and the amount Of
interest received from the bonds.
Another effort 90 continue the ex-
cess profits tax after this calendar
year failed, the senate rejecting, 50
10 so. an amendment by Sen. Reed
proposing a tax Of 90 per cent on
net profits OF corporations IN excess
OF 80 per cent Of the invested capital.
The amendment was supported by
seven republicans, Capper, Johnson,
Kenyon. Lafouette McNary. Nor
beck and Norris
In rapid succession the senator
rejected three amendments pro-
posisng changes I'm the corporation
income tax rate Of Is percent pre-
viously agreed upon. The first
amendment by Sen. Edge. republi-
can, New Jersey. proposed retention
OF the present 10 percent rate; the
second by Sen. Walsh. democrat,
Ma asa chusetts. was for a graduated
tax OF 10 20 90 percent, and the
third by Sen. LenrOot. republican,
Wisconsin. proposed a 10 percent
rate IN the case Of corporations
having net profits of eight percent
or less
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