Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-11-20
Conferees
Decide on
Tax Rate
Corporations Subjected to
IL II Per Gent Levy In
stead of Is Per Cent as
+ Provided by Senate.
Will Reduce Revenues
Chicago Tribune Omaha Bee Leased Wire

Chicago Tribune Omaha Bee Leased Wire.
Washington, Nov. l9.-Corpora-
tons will be subject to flat income
tax of l2l--2 per cent, beginning
with income of the calendar year
1922, under an agreement reached to-
day by the senate and house con-
ferees on the revenue bill.
The conferees approved the rate as
provided in the bill originally passed
by the house instead OF Is per cent
rate in the senate bill. This action
was taken at the insistense OF the
house conierces, who argued that
corporations should not be required
to bear heavier tax. The II IL per
cent flat tax will be a substitute for
the 10 per cent normal tax and ex-
cess profits tax provided under the
present law.
1t will mean considerable re-
duction in taxation for corporations
with large earnings which have been
subject to the excess profits tax,
but an increase for these which have
not had earnings sufficiently large 20
be subject to the excess profits
taxes.
Means Cut in Revenues.
BY approving the II l-2 per cent
tax, the conferees deliberately cut
the probable revenues below the
amount which the treasury had es-
timated to be necessary to meet ex-
penditures. While the reduction from
IS to 121-2 per cent will not affect
revenues during the fiscal year 1922,
it will mean az. eventual loss of $780,
100000 annually from the amount
which would have been yielded under
the senate bill.
The bill, as passed by the senate.
was estimated to raise $3,242,730,000
during the fiscal year 1922, which is
$30,000,000 less than the amount
which the treasury officials said
would be raised from internal taxa
ton. This bill as agreed to by the con-
ferees may result in a deficit of at
least $60,000,O0O during the fiscal
year 1922 and probably will raise
less than $2,550000,000 in the fiscal
year 1928.
Amendment Approved.
The conferees approved the senate
amendment which provides that the
$1,000 corporation income tax ex-
empion shall apply only in the case
of corporations whose net income
is $25,000 or less.
The ,conferees struck out the
Wadsworth amendment, added in
the senate, which imposed new taxes
on medicinal beers, wine and whis-
Ky.
All of the republican conferees
except Senator Smoot of Utah
signed the conference report. Senator
Smoot, whose plan for a sales tax
was rejected, said he was not con-
WINGED that the bill would raise suf-
ficient revenue. He intends to ex-
press his views on the measure on
the floor OF the senate. The demo-
.crats also did not sign the report.
The conference report will be
brought up in the house Monday un-
der an agreement providing for four
or five hours of debate. Although
the report had mot been entirely
drafted tonight, Representative Ford
ney. chairman of the house ways
and means committee, obtained per-
mission from the house to file it by
midnight tomorrow night, under
date Of today. This will make pos
ysible its consideration Monday.
The leaders hope the senate will
approve the conference report not
later than Wednesday, making final
adjournment Of the session possible
on that day.