The Washington herald., 1921-09-08
Retention of Certain Fea-
lures Will Retard
y Revival.
CHANGES EXPECTED
Present Form Somewhat
Constructive" Declares
: F. H. Sisson.
by FRANCIS n. sIssON.

-tNice President Guaranty Trust.
,, Company of New York;
NEW YORK, Sept. THE new
revenue bill which. according to es-
Inmates, will reduce revenue collec-
tions to about $500. 100000 for the
current fscaI year. and to s2.77s,-
$4,000 in 1923. when the new rates
will be fully reflected in revenue
receipts. repeals the excess profits
tax. increases the corporation in
come tax rate, repcals many OF the
so-caIIed nuisance taxes" the
transportation taxes, except those
imposed on telegraph and telephone
messages. and effects a number OF
other important changes.
The most significant feature OF
these changes is the repeal of the
excess profits tax and the reduction
Of the surtaxes. Business interests
have looked forward TO the elimina-
tion of these taxes, but the post
ponement of the effective date to
January l. 1922. meets with general
dissatisfaction in industries which
have confidently expected this relief
during the current year. The con-
tinuance Of theso taxes will I'M
doubtedIy have tendency to defer
business revival. 1t is. however,
still possible that tho action of the
House may he reversed by the Sem
ate and the repeal made effective as
~ the beginning OF the calendar
ycar 3
Provides some Relief.
Notwithstanding the fact that tho
bill in it's present form does not
materially reduce the current years
tax burden. many Of its provisions
are such that the bill in some re-
SpeCts may be characterized as a
constructive measure and an i'm
pTovcmcnt on the present law. 4
much needed provision has been in
cTuded in the bill. whereby il is pos
sTble for th,. taxpayer. with the
agreement Of the commissioner. to
have a final determination of his
tax liability which cannot there
after b~ subject 70 rc-opcninE eN-
rept for fraud. Another important
proposed chang" in the bill is the
inclusion Of the net loss provision.
which permits losses nf ono year to
he offset by the profits Of next sue
ceedinE year or the second sue
ceedinE year. If the income of the
year following the loss is not suf-
icient.
The new provision in the bill for
the benefit of Americans engaged
iE bucincss in foreign countries
should be Of material assistance in
enabling our industries to PartiCi-
pate in world trade. Under the
present law citizens Of the United
States and domestic corporations
are taxed on their entire net in
come, from whatever source derived
The new bill taxes American bust
ness concerns. so yer cent or more
Of whose income was derived from
sources without the United States,
only such part of their income as
is derived from sources within the
United states.
shows Modern Policy.
The Incorporation of such a pro-
vision in the proposed law gives
evidence OF an enlightened policy on
the part of the Federal government
toward foreign trade. Other nations,
especially Great Britain, have long
made the practice of extending
special privileges. in regard to tax
alton, to their business enterprises
operating abroad, and il is impera-
tive that this country adopt similar
policies II we expect our industries
10 meet foreign competition.
The bill contains number of
which modify the present law. Many
OF these provisions. meet with gem
eral approval, while some are more
br less Objectionable. As the bill
how goes to the Senate for consid-
station IL Is not unlikely that it
will undergo changes before it
finally becomes a law.