The New York herald., 1921-11-17
HOUSE ACTS TO-DAY
ON SENATE SURTAX
to Revision Bill
Fixing 80 p. c. Maximum
Rate to BE Voted On.
MAY BE A COMPROMISE
Several High Spots in Meas
ure Still to Be Disposed of
by the COnferees.

WARRINGTON, Nov. 16.-The pig issue
in the tax revision bill the Senate
amendment fixing the maximum surtax
rate at so per CENTS to come to a
vote tomorrow in the House.
Spokesman for the "insurgent" Re-
publicans and the Democratic minority
expressed confidence that they could
high rate In the bill While making no
predictions. Republicans leaders generally
were hopeful that uIt.natcy there would
be a compromise as between the Senate
rate and the House rate of the S2 per
cent, probably around 40 per cent.
Chairman Campbell of the Rules Com
mittee said tonight that the vote would
be under a rule limiting debate to two
hours and insuring decision on the
straight cut issue of accepting the Sem
ate amendment This was requested by
the leaders of the "insurgent" group,
who said they did not want the issue
confused with a motion first to instruct
the conferees to agree on a maximum
other than the so per cent
Should the proposition to accept the
Senate amendment be voted down the
House then could agree on q compro-
IillSc uSuTe OF pcIiIllL LHC COuIeTGeS 10
resume negotiations with the Senate
maiagers without further instructions.
Many Problems to Solve.
After the House has expressed itself
on the surtax amendment the conferees
will proceed to dispose of the other thigh
spots in the bill, which include the cor
poration income tax, the increased estate
tax, the tax on gifts of property, the
levies on medicinal beer. wine and whis-
key. the repeal of the 1000 normal ex-
emption to corporations except where the
capital stock is s25,000 or less, the treat
ment of insurance companies other than
life, ana the amendments defining capital
gain and loss.
At their sessions to-day the conferees
agreed to Senate amendments striking
out original House provisions for the
exemption from the income tax of in
come received by foreign traders and
foreign trade corporations from sources
outside the United States. 1t was the
understanding that the conferees would
accept the Senate provisions designed to
place Americans doing business in the
Philippines and Porto Rico on 4 par
with foreigners in those insular possess
sions so far as taxation is concerned.
The managers also agreed on tho
Senate amendments repeating the tax on
parcel post packages and on bonds Of
indemnity and surety. Another Senate
amendment accepted provides that If
corporations issue capital stock at
value OF less than 500 a share, the
tax shall be one cent on each $40 OF the
actual value or fraction thereof. The
present law imposes tax Of cents on
each 800 OF stock. irrespective Of the
par value of the shares issued.
Some Amendments Accepted.
Other Senate amendments accepted
included those re-enacting provisions
OF tho existing law imposing taxes at
the present rates on:
Capital stock of corporations.
Brokers. proprietors of theatres, cir
cuses. bowling alleys. billiard rooms.
shooting galleries, riding academies,
persons operating or renting passenger
automobiles for hire, brewers, distillers
and wholesale and retail liquor dealers.
Manufacturers of tobacco. cigars and
cigarettes.
Dealers in narcotics.
On the employment of child labor and