Bisbee daily review., 1921-09-18
TAX BILLS KEEP
SENATE BUSY IN
EFFORT To AGREE
WITH HOUSE PLAN
Fail to Reach Final Decision
on Smoot, Calder Proposals
at Saturday Session
INCREASE TERM BONDS
Allow Deduction of Net Loss
From Net Income in Pay
ments Made Retroactive

WASHINGTON, Sept. 17-The sen
ate finance committee failed today to
reach final decisions on the Smoot
tax simplification bill embodying
manufacturers sales levy, and on
senator Calder's proposal to impose
u tax OF $40 a gallon ON all alcoholic
liquors withdrawn from bond for 9TH
er than manufacturing purposes. The
committee will meet again Monday.
Senator Smoot's bill was said to have
been favorably received by several
senators, but the concensus OF opin-
ion seemed to be that the committee
would reject it.
Reiterating that he would offer the
bill in the senate, the Utah senator
said: 1--WE will see what will happen
there"
Auto Dealers Favor Tax
The American Automobile Associa-
tion today announced it favored the
manufacturers tax proposal, declar-
ing it would give business men just
wnat they feel is needed to set in mo-
ton the wheels of industry that will
give employment to more than 5,00e,-
100 idle men"
Senator Calder's whiskey amend
ment was discussed by the commit
Tee anu was Setlu W nave Dccu dCScpt-
ell in principle. The senator said he
had been asked to redraft the amend
ment to avoid any construction that il
Ilight tax industrial alcohol
The proposed amendment goes fur
ther than the house provision which
would tax at the $6.40 rate only al
coholic liquors diverted to beverage
purposes. Senator Calder would tax
liquors withdrawn for medicinal pur-
poses as well. The Calder proposals
were taken up after the committee
had completed its revision of the
house bill. Last minute changes IN
cluded a new provision requiring ho-
tells to pay tax of 10 per cent on the
amount in excess of So charged to
transients for single rooms and on the
amount in excess of So charged for
double rooms.
The committee approved the house
provision granting the treasury au-
thority To issue $500, 100000 in short
term securities instead of 100000
900 but rejected the ways and means
committee plan to create a tax inves-
tigative committee to study means of
taxing income from tax exempt state
and municipal securities.
new proposal adopted would re-
of one per cent interest on taxes er-
roneously paid and refunded. Aside
from these changes in the 1918 rev.
enue act, the committee agreed to
half a hundred others, many of which
were incorporated in the house bill.
Change Insurance Tax
An official statement issued at
Chairman Penrose's office, showed
that il had been agreed to accept the
house provision repeating the policy
taxes on life insurance and the prem
ium taxes of other insurance compan
les on next January 1, and to impose
Is per cent tax on the investment in
come of life insurance companies
from last June l.
In considering administrative sec.
tions of the house bill. the committee:
Restored the provision of the pres.
ent law permitting manufacturers
subject TO tax and doing both whole
eale and retail business to compute
the tax on retail sales upon the basis
OF their wholesale selling prices.
Accepted the provision authorizing
the commissioner of internal revenue
18th the approval of the secretary OF
the treasury and with the consent o.
the taxpayer. to make final settlement
Adopted the provision that If the
personal service corporation provis
ions Of the 1918 law are held uncon
stitutional, such corporations shall
pay the tax imposed on other corpora
tions under the 1918 act unless they
elect to pay taxes under the persona
service corporation provision of sucf
act.
Approved the house method o.
treating personal service corpora
tions as other corporations as of anC
after January 1.
Adopted the house provision per
mitting deduction of a net loss result
inc after December 81, 1920. IN an,
taxable year. from the net income o
the taXpayer for the succeeding tax
able year and IL the net loss is in ex
cess of the net income for such sue
ceeding taxable year, the amount o
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