Evening star., 1921-10-06
AGREEMENT
FOR REVISING TAX
CONTINUED from First Page.)

await the outcome OF negotiations
among the republican senators look
Ing to . program that would COM
mand united support.
Investment in tax-exempt securities.
which has resulted In a tremendous
loss In revenues under the present
income tax laws, is attacked in an
amendment to the tax revision bill
offered today by Senator Walsh of
Massachusetts,, democratic member of
the Senate finance committee.
Because Of the constitutional in
hibition against the imposition Of in
come taxes upon securities issued by
states, counties and municipalities.
Senator Wash has approached the
matter through the federal inher-
itance taxes. He proposes that when
taX-exempt securities pass through
an estate which has to pay an estate
tax fonly estates of over $4,000 pay
an estate taxi the tax-eXempt securi-
ties will be segregated and required
to pay larger rate than the other
estate properties. The additional rate
fixed by Senator Walsh at Is per cent.
In this way the government would
recoup somewhat the loss sustained
by not being able to collect taxes on
the income from tax exempt securi-
ties.
Deals With Gift Practice.
Senator Walsh's amendment also
deals with the practice which has
grown to large proportions in recent
years among holders of large estates
of making gifts to relatives and
parts Of their possessions for the
purpose of reducing their taxation.
These gifts result in lowering the
surfaces on the income of the donors.
His amendment seeks to limit the
abuse that has grown up through
gift making by providing an excise
tax upon gifts. 1t eXempts gifts up
to 100000. but provides that the donor
shall pay graduated tax. commenc-
ing at ! per cent on the amount from
100000 to $4,000 and increasing
through various brackets to rs per
cent on $l0,O00,000 and over.
Cites Increasing LOSS.
Senator Walsh said that there had
been a steady and increasing loss in
the revenues of the government due
to tie exchange of tax-paying secu-
rites for tax-exempt securities,
amounting to about $6oe,ooo,0Oo a
year There are in the country about
$50 600. 100000 tax-exempt securities.
including those of the federal gov
erHrnent ana the states ana divisions
of states.
The democrats on the finance COM
mittee yesterday put in their minor
ity report in which they declared that
the bill neither fulfills the promises
of the republican party for a simpli-
fication of tax law and procedure nor
satisfies the demand of the demo-
cratic party for complete survey
of existing taxes and their modifica-
ton and simplification."
Majority Report Filed.
Senator La Toilette of Wisconsin, a
republican member of the finance COM
mittee, also filed a minority view. de-
claring that he was in general accord
with the democratic report in SO far
as it criticised the proposals of the
upon large individual incomes, to re-
capital stock tax, to retain the trans
portation taxes and to greatly aggra-
vate the existing disparity between
corporation and Individual and part
nership taxes" He added. however,
that he felt the recommen n da tions of
the minority would do little more
than palliate some of the monstrous
iniquities of this bill. without curing
any of its fundamental evils
There is nothing to be gained by
the forced and inconsiderate enact
ment of the present BILL said the
democratic minority report. That
bill affords no relief to the country.
There will be no reductions effective
during this calendar year - nine
months after the advent to full power