The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-09-14
CHANGE PROPOSED INDATEOF
EFFECT OF EXCESS PROFITS TAX
Senate Finance Committee APP
proves House Hill Repeating
Tax as Recommended.
tby Ths Aaaoelated preaal

WASHINGTON. Sept. 1s-Corpora-
tions would be required to pay excess
profits taxes for another year under
decision today Of the senate finance
committee which finally approved the
provision IN the house Bill repeating
these taxes as Of next january /. in
stead OF last January /. as recon-
mended by Secretary Mellon.
The committee also inserted g pro-
vision IN the house measure repeal
ing the capital stock tax, effective
next year. and adopted an amendment
increasing the corporation income tax
from 10 to is per cent. instead of
IL IL per cent. effective january /.
1922.
These represented the major de-
cisions reached today at two sessions,
although it was said officially that
the committee practically had decided
to amend the house bin so as to con-
tinue the tax on express packages and
oil transported by pipe line. Whether
any portion Of the taxes on the trans
portation OF freight and passengers
win be retained after next January /,
win depend, Chairman Penrose said.
upon report to be made tomorrow
by the treasury as to the savings in
expenditures expected to be made this
fiscal year by. the various government
departments.
the committee, which was represented
as taking the position that it could
not complete the levy sections OF the
bill until it had more detailed informa-
ton as to how the departments ex-
pected to accomplish the $3.50. .000.0 600
cut in outgo agreed upon at the White
House tax conferences last month.
With this information in hand,
Chairman Penrose said the committee
probably could get through with all
OF the levy sections OF the bin tomor-
row. Rapid progress was made today.
the committee completing considera-
tion Of a number Of administrative as
we'll as levy sections.
out today included those exempting
from the income tax the salaries OF
the president and the judges of fed
eral courts; the first $500 OF income
from investments in building and loan
associations and contributions made
by corporations for charitable pur-
poses. The committee also disagreed
to the house proposition allowing
travelling statesmen to deduct from
their income all expenses incurred
while on the road.
A new section added to the house |
bill would require individuals having
a gross income OF $4,000 annually to
make a return Irrespective Of whether
the total amount OF net income was
taxable Chairman Penrose said the
treasury expected to collect income |
tax from many persons not now max
ing returns. through this provision.
Another provision added by the COM |
mittee would permit banks to deduct
Tor purposes Of federal taxation the
amount Of taxes paid to states on the I
shares OF stockholders.
The conamittee agreed TO sections OF |
the house bin exempting from tax in
.erest on &ank deposits Of foreigners
engaged ~ business in this countryl
,ut not HAVING regular places of busi- !,
,ess ana ! empting fraternal bene- |
IcIarv sociel Is from federal taxation
I also agree g tne mousse provision |
y .,.s = make consolidated re-
,.- s.... -. diary COMPANIES or an
ea,.s.Aa, esi.s - in Tor each subsidiary. |