The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-09-17
Taxes On Corpora
tons For this Year
Senate Refuses to Agree to
MELONS,; Retroactive Repeal
of Tax on Excess Profits

Washington Sept. l3.-Corpora-
tions would be required to pay eX-
cess profits taxes for another year
under decision Of the senate.
finance committee which finally ap-
proved the provision in the house
bill repeating these taxes as Of next
January /, instead Of last January,
], as recommended by Secretary
Mellon.
The committee also inserted a
provision in the house measure re-
pealing the capital stock tax, ef-
fective next year, and adopted an
amendment increasing the corpor-
alton income tax from 10 to Is per
cent, instead of u 1-2 per cent,
effective January !, 1922.
These represented the major
decisions reached today at two ses--
sions, although it was said official
ly that the committee practically
had decided to amend the house
bill so as to continue the tax on
express packages and Oil transport
ed by pipe lines. Whether anorh-
er portion Of the taxes on the
transportation of freight and pas
sengers will be retained after jan
uary L.. will depend, Chairman
Penrose said, upon report to1be
be made tomorrow by the treasury
as to the savings in expenditures
expected to- be made this fiscal
year by the various government de-
partmentS-
This rdeport vas called for to-
day by the committee which was
represented 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, 100000 cut in
outgo agreed upon at the White
House tax conference last month.
With this information in hand,
Chairman Penrose said the co.,
mittec probably could get through
all of the levy sections of the bill
tomorrow. Rapid progress was
made today, the committee COM
pleting consideration OF number
Of administrative as we'll. as levy
sections.
Provisions, in the house bill
stricken out today included those
exempting from the income tax the
salaries of the president and the
! judges Of federal courts; the first
$500 Of income from. investments in
building and loan associations and
contributions made by corpora
| tios for charita BILE purposes. The
committee also disagreed to the
house provision allowing travelling
statesmen to deduct from their in
come all expenses incurred while
on the road.
A new section added to the house
bill would require individuals HAY
ing a gross income Of $4,000 an
nually to make return irrespec-
tive of whether the total amount of
net income was taxable. Chair
man Penrose said the treasury eX-
pected to collect income taxes from
many persons not now making re;
/ turns through this prOylSOn.A
Another provision added " the
committee would permit banks to
deduct for purposes OF, federal tax
alton the amount Of. taxes paid to
states on the shares of stoc!lhold-
| erS.
The committee agreed to sections
of the house bill exempting from
tax interest on bank deposits Of
foreigners engaged in business in
this country, but not having reg
ular places of business and exempt
ing fraternal beneficiary societies
from federal taxation. ut also
agreed to the house provision per-
nlitting corporations after next
January l to make consolidated re-
turns for subsidiary companies or
an individual return. for each SUBJ
sidiary.