Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-11-08
TAX REVISION
BILL NOW GOES
TO CONFERENCE
Continued from page /.

.taXrrevision bill before adjournment. |
During the day it rejected the two re-
manning soldier bonus amendments
and then proceeded to dispose of the ;
other amendments in rapid succession.
The debate on the Simmons-Mc-
kellar amendments proposing to util-
lie part Of the interest on the foreign
debt to finance adjusted compensation
for the former service men consumed
the first five hours of the session. |
Both proposals were rejected by de-
cisive votes, the Simmons amendment
AZ to. 20 and the Mcclellan amend
ment, a. to rs. The roll call on the
Simmons included:
For: Ladd. North Dakota; LaFol-
lette, Wisconsin,; Walsh. Montana.
Against: Lenroot. Wisconsin,; Mo-
Cumber, North Dakota: Nelson, Min
nesota; Norbeck. South Dakota and
Myres, Montana.
Only two Observation-Disclosures
and Norris supported the Mcclellan
amendment while two Democrats
King and Williams voted against it.
Lcnroot Amendment Carried.
Without a roll call the senate
adopted an amendment by Senator
Lenroot, Republican. Wisconsin, UNI
der which the net gain made by a tax
payer on the sales of stocks of cor
porations would be taxed at the full
income normal and surtax rates. 1t
was agreed that under the committee
bill only 40 per cent of such gain
would have been taxable because such
sales would htve come under the pro-
vision dealing with the taxation of
grain from disposition Of capital as
sets.
Senator Lenroot declared that un-
der the original provision stock
gamblers in Wall street." would have
been able to escape taxation on 60
per cent of their profits. He also
commended that stockholders receiving
took dividends could convert their
earnings into cash and escape taxation
on 60 per cent Of h gain thus made.
Under an amendment by Senator
Frelinghuysen, Republican. New
Jersey, which accepted any trade or
business owned by a partnership or in
dlVdua which was organized within
four months after the passage OF the
tax bill, as the corporation might, at
the option of the partnership or in
dividual. pay the corporation tax on
the net income received from January
/, 1921, to the date of such organiza-
ton. 1t was provided, however, that
this option would not be extended in
the case of any business which real
lied in the taxable year. 1921. twenty
per cent or more profits on the cap
ital invested.
The senate adopted, 35 to 81, an
amendment by Senator Walsh, Demo-
crat. Massachusetts,, providing for a
graduated tax on transfers of prop
erty by gift by every person." The
rate range from n per cent of the
amount by which the gifts exceed $780,
900 and do not exceed $50, 1000. to 25
per cent on amounts in excess Of $780,
OO0, O0O.'
Jones Amendment Defeated.
BY a vote of 81 to %, the senate
rejected an amendment by eSnator
Jones. Democrat, New Mexico, pro-
posing to allow partnership n indi-
Wduals to elect whether they should
pay x on net income from heir
business at the corporation or individ-
uals income rates.
On a tie vote, 80 to 80, the senate
rejected an amendment by Snato
Kenyon. Republican, Iowa. proposing
a a equivalent to Is per cent of the
value Of tax exemp securities a
ferred as par of estates, provided such
securities were issued six months after
the passage of the act.
Previously by a vote, of 33 to rs, the
senate had rejected an amendment by
Senaor LaFollete, Republican, Wis
~consin, which would have imposed he
same tax and also a ten per cent tax
on the transfer of tax exempt secur-
ities issued before the passage of the
act.
On the motion OF Sepator Reed.
the senate voted 80 to 81, to- strike
out the Lodge amendments allowing
holding companies to- DEDUCT from
their capital stock the amount Of such
tax paid on the stock of their sub
salaries.
Senator smoot, Republican, Utah,
brought the sales tax again tonight.
proposing his original three per cent
manufacturers levy with a ten per
cent corporation tax, a 80 per cent
maximum income surtax rate, and a
capital stock tax. 1t was rejected
without a record vote.
Exemption on LIBERTY. Bonds.
Reconsidering its former action,
the senate voted to allow original
purchasers Of Liberty n Victory
bonds an exemption equal to the In
~terest on money borrowed to purchase
or carry those bonds. The senate
previously had agreed to allow an ex-
emption only on the difference be-
tween the interest on the money Dor.
rowed and the amount OF interest re;
ceived from the bonds.
On motion OF Senator Pomerene
Democrat, Ohio. the senate voted, A
to ~, to make the capital stock taa
on, all corporations the same a 8 ii
present-oie dollar on each $1,000
Of capital stock in excess of $4,000
Another effort to continue the ex'
cess profits tax after this calendar
q year failed, the senate rejecting SO Il
80, an amendment by Senator Reei
. proposing a tax Of twenty per cen
on net profits OF corporations in ex.
. cess OF SO per cent OF the invested
: capital. The amendment was sup.
; ported by seven Republicans, Cap
: per. johnson, Kenyon; IaFollette
McEary, Norbeck and Norris.
t,J,A pTrRrry CONFERENCE.