The Birmingham age-herald., 1921-08-16

would be unnecessary If the excess profits and higher surtaxes were im- posed for this taxable year
 The tax measure as presented in the House is entitled, "A bill to re- duce and equalize taxation, to amend and simplify the revenue act of 1918 and for other purposes Much of it's 16000 odd words of text is devoted to amendments to the administrative section Of the present law. drafted by treasury experts with a view to clarifying specific parts of the 1918 act and meeting situations arising from decisions of the supreme court
 Levy Section
 Aside from the revisions of the levy sections already referred to, the bill proposed repeal of all of the transportation taxes effective next January l. increased exemptions to heads of families and married men having incomes of less than s5000. de- creases in the levies on candy, sport. ing goods, furs and art and art works; the substitution of manufac. turers' taxes for the so-called nui- sance and luxury levies and other changes, details of which have been given in previous Associated Press dispatches.
 IcNiSlOnS lnCIuQe eXemD- tion from taxation of salaries of the President of the United States and the judges of the supreme court and inferior federal courts and also amounts received by individuals as compensation, family aliotments and allowances under provisions of the war risk insurance and vocational re- mobilization acts.
 A change also is made in life fn- surance company taxation, the bill re- quiring them ito pay the normal cor poration tax in lieu of the 1evies on policies when written and all other present taxes except the corpora ton stock tax and certain stamp taxes Foreign life insurance companies would pay on the net income from sources within the United States.
 Important Section
 Another important section of the new bill outlines a general plan American concerns doing practically all of their in foreign countries, only the income received from American sources. Personal service corporations. freed by the supreme court of corporation taxes would be brought specifically under the cor poration income tax by the bill and provision is made that if the partner ship tax of the 1918 act on indivi- dual stockholders of such corpora tions should be declared invalid. There shall. in addition to all other taxes be levied, collected and paid on the net income received during the calendar years 1918, 1919 and 1920, by every personal service a tax equal to the taxes imposed under the ex- cess profit and income surtax pro. sision Of the present law"
 Exemption from taxation would ns granted to farmers cooperative purchasing rganizations as well as materials purchased were turned over to members of the organization "at actual cost plus necessary expenses"
 Beverage Taxes
 Distilled spirits diverted to bever. age purposes or in the manufacture of any article intended for beverage use would be taxed at the rate ol $4.2o gallon, the tax to be paid by the persons responsible for such di- version.
 Under an amendment to the estate tax sections of the present law. amounts receivable as insurance upon the life of nonresident decedent, any monies deposited in any bank,
 
 the United States by or for nom resident decedent who was not en- gagged in business in the United States at the time of his death, would be exempt from taxation. Other revisions provide that nom amusement tax shall be levied on ad- missions. all the proceeds of which insure exclusively to the benefit ot persons in the military and naval service or to persons who have served in such forces and are in need; that the jewellers tax of per cent on portable electric fans shall be repeal ed and that tax of 10 per cent shall be imposed on lens for camerasI not more than 100 pounds.
 New Features Some of the new administrative fea- lures in the bill are designed to speed up settlement of claims involving back tax estimated to total $1,500,- |