Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-09-14

AAOAA ~ W LIZ kJcl CcIAL lIAStS
January l, 1922.
These represented the major de-
cisions reached Tuesday at two ses-
sions, although it was said officially
the committee virtually had decided to
amend the house bill SO as to continue
the tax no express packages and oil
transported by pipe lines. Whether
any portion of the taxes on the trans
portation of freight and passengers
will be retained after next January /.
will depend. Chairman Penrose said.
upon a report to be made Wednesday
by the treasury AZ to the savings in
expenditures expected to be made this
fiscal year by the various government
departments.
..e Call for Report.
This report was called for Tuesday
by the committee which was repre-
sented as taking the position that it
could not complete the levy sections
of the bill until it had more detailed
information as to how the departments
expected to accomplish the $3.50, ,OOO,-
600 cut agreed upon at the white
house tax conference last month. With
this information in hand, Chairman
Penrose said the committee probably
could get through with all of the levy
sections Of the bill Wednesday. Rapid
progress was made Tuesday, the COM
mittee completing consideration of
number of administrative as well as
levy sections.
Provisions in the house bill stricken
out included those exempting from the
income tax the salaries of the presi-
dent and. judges II federal courts: the
first 500 Of income of investment in
building and loan associations and con-
tributions made BY corporations for
charitable purposes. The committee
also disagreed to the house provision
allowing travelling statesmen to deduct
from their income all expenses in
cured while on the road.
A new section added to the house
bin would require individuals having a
gross income of 5000 annually to
make a return, irrespective OF wnetner
the total amount of net income was
taxable. Chairman Penroac said the
treasury expected to collect income tax
from many persons not now making 1e-
turns, through this provision.
Provisions Added.
Another provision added by the com
nittee would permit banks to deduct
for purposes of federal taxation the
amount Of taxes paid to states on the
shares Of stockholders.
The committee agreed to sections ,,
" the house bill exempting from tax
interests on bank deposits of foreigners
engaged in business in this country. but
lot having regular places OF business,
md exemption of the fraternal benefl-
,ial societies from federal taxation. 1t |
llso agreed to the house provision to |
permit corporations after next January
|. to make consolidated returns for
companies or an individual.
.eturn for each subsidiary.
Under the bill as amended Tuesday |
" the committee, corporations would |
,ay S8O,OOO.OOO less in taxes in the
.aiendar year than they would under 7
he present law. but it was explained |
hat most of this loss in government |
.eyenue would be made up by commit !
ee changes already agreed upon or
The reduction in corporation taxes
or next year would be accounted for
y repeal Of the capital stock tax. In
he calendar year 1923. however. cor
,orations would pay $242. 100000 less
han under the present law, according I
o treasury estimates. This would be
,rought about through repeal of the
,rofits tax. which would cut govern
nent revenues 45.OOO.OOO a year. As
n offset to this, corporations. it was
xplained, would pay an additional 5
,er cent income tax, estimated at
o67 500, 600