New-York tribune., 1921-11-17
House to Vote
. On 50 Per Cent
Surtax To-day
'Two-HOur Limit on Debate
Insurcs Straight Cut Is-
sue; Republicans Still
Hope for Compromise
High Spots'' Come Next
Conferees Agree 10 Senate
Levy on Incomes of
Foreign Trade Firms

WASHINGTON, Nov. 16.--Thc big
issue in tho tax revision hill--The
Senate amendment fixing the maximum
to q vote tomorrow in the House.
Spokesman for the s'insurgcnt" Repub-
licans and the Democratic minority
expressed confidence tonight that they
could muster the, necessary votes to
keep the high rate in the bill. While
making no predictions, Republican
leaders generally were hopeful that
ultimately there would be COM
promise as between the Senate rate
and tho House rate of SO per cent,
probably around 80 per cent.
Chairman Campbell. of the Rules
Committee. said tonight that the vote
would be under rule limiting debate
TO two hours and insuring decision
o. on the straight cut Issue Of accepting
the Senate amendment. This was re-
quested by the leaders of the "insur-
gent" group, who said they did not
want the issue confused with motion
f!rst to instruct the conferees to agree
on q 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 com
promise figure or permit the confer
ees to resume negotiations with the
Senate managers without further in
structions
After the House has expressed itself
ferees will proceed to dispose s.s Of tn the
other high spots" in the bill, which
include the corporation income tax, the
increased estate tax, the tax ON gifts
of property, the levies on medicinal
beer, wine and whisky, the repeal of
the $4,000 normal exemption 10 COR
porations except where the capital
stock is $4,000 or less, the treatment
OF insurance companies other than life,
and 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
10 place Americans doing business in
the Philippines and Porto Rico on a
par with foreigners in those insular
possessions so far as taxation is con-
cerned.
The managers also agreed on the
Senate amendments repeating the tax
on parcel post packages and on bonds
OF indemnity and surety. Another SEN
ate amendment accepted provides that
II corporations issue capital stock at a
value Of less than 500 a share, the tax
shall be 1-cent on each $40 of the
actual value or fraction thereof The
present law imposes tax of cents
on each S100 of, stock. irrespective of
the par value OF the shares issued.
Other Senate amendments accepted
included those re-enacting provisions
Of the existing law imposing taxes at
the present rates on capital stock of
corporations, brokers, proprietors of
theaters, circuses, bowling alleys, bill
lard rooms, shooting galleries, riding
academies, persons operating or renting
passenger automobiles for hire, brew
ers. distillers and wholesale and retail
liquor dealers, manufacturers of to-
baeco, cigars and cigarettes, dealers in
narcotics, on the employment of child
labor, and license >lcvies on owners of
yachts and other pleasure craft.