The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-11-20
Senator SmOOt Wants to Study
Measure Before Giving
1t His Approval.
OPPOSITION EXPECTED
. IN HOUSE AND SENATE
Leaders, However, Hopeful That
Final Step in Enactment Will
Come by Wednesday.

WASHINGTON, Nov 19.-The tax
revision bin came through its third
re- writing today and Will be returned
to the house on Monday Republican
leaders are hopeful that the final step
IN its enactment can be taken In time
to permit congress to end its special
sosslon Wednesday. as planned.
only hve Of the 10 conferees on the
bill have signed the conference reports.
The democrats refused TO sign and one
Of the six republican managers, Sem
ator Smoot Of Utah, proponent Of the
sales tax withheld his signature. He
said It was his intention to study the
bill to see whether It was any improve
ment over existing law before reach
ing a decision as to giving It his APP
prevail
Opposition to some features Of the
bin Is expected to develop in both the
house and senate. House leaders plan,
however to put the bill through the
house Monday after four or five hours
Of debate so that the senate will have
two days TO consider 1t before tho time
now tentatively fixed for adjournment
OF congress.
Leaders OF the republicans in the
house who bolted on the surtax amend
ment said today that while some re-
pubiicans were opposed to the action
OF the conferees In striking out senate.
amendments providing for increased
inheritance taxes and for making in-
come tax returns available to congress,
there would be no organized opposi-
ton to the bill
~. ~
4. measure today, the house and senate
nanagers fixed the corporation income
= Ak rate at 12 II per cent the figure
in the original house bill. This In
creases the present rate by ? 1-2 per
cent. but Is 21-2 per cent below the
ngure agreed upon by the senate.
In lieu of the Wadsworth amend
ments taxing Industrial alcohol and
beer. wine and whiskey used for me-
dicinal purposes. the conferees agreed
10 the original house provision relating
TO liquor taxes. This retains the pres
ent tax Of 1920 gallon on distilled
spirits. with a provision for an addi-
tional tax 81 S420 a gallon on such
spirits diverted for beverage purposes.
This tax would be paid by the person
responsible for such diversion"
The conferees retained the senate
amendment repealIng the normal ex-
emption Of $4,000 allowed corporations,
but the repeal would not apply in the
case OF corporations having net in
comes Of $4,000 or less
The walsh amendment proposing a
tax ranging from 1 per cent to % per
cent on gifts OF property by persons
was eliminated This was designed,
according q its author, to prevent eva
sion Of the surtax By wealthy individ-
uals dividing their property among
their relatives.
a new provision for taxing gain from
the sale OF capital assets was written
into the bill. 1t is limited to individ-
mails and provides that II the taxpayer
elects 20 make separate return for
the taxation Of his income from the
sale of capital assets. he shall pay q
tax on the gain at the corporation in
come rate OF 121-2 per cent on the
total Of the gain. The Lenroot amend
nent excluding stock ot corporations
with capital assets to be so treated
was Eliminated
some estimates were that from $3.50,
oo0. 900 to $500, 100000 had been cut
fr6m the bin. which as It passed the
senate. was designed 70 yield approx
Yhately ss.soo. 600. 900, or slightly less
than the total treasury officials told
the senate finance committee in Sep
teHber would be necessary for this
fiscal year.
Chairman penrose. Of the senate
managers. however. said the bin as
nnauv amended by the conferees was
"entirely adequate" for the immediate
revenue needs Of the government, but
- would make no estimate as to the
total yield