Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-11-19
PROPOSED BOOST
Of INHERITANCE
TAX VOTED DOWN
Senate Amendment InCreaS-
ing the Rate is Knocked
Out of Bill BY Senate and
House ConfereeS.
tBy The Assocra-es rress.)

Washington, Nov. 1S.-The sem
ate amendment proposing to in
crease the maximum inheritance
tax rate from the present rs per
cent on estimates valued at $10,-
100000 or more, to so per cent on
those of 500, 100000 or more, was
knocked out of the tax revision bill
today by house and senate con-
ferees. This amendment formed Il
part of the compromise revision
program brought forward by the
senate agricultural bloc and agreed
to by republican leaders.
This was the only one Of the re-
naming high spots" in the bill on
which the conferees came to an
agreement today but the house
managers, in conformity with In
structions voted yesterday by the
house accepted the senate income
surtax maximum rate of 80 per
cent. At the White House today IL
was said President Harding wa
frankly disappointed by the house
action on the surtaX amendment
and this disappointment was re-
Elected in other administration anu
congressional circles.
Insurance Companies.
The house managers accepted TO-
day the senate plan for taxing IN
surance companies. This plan pro
yides that life insurance companies
shall pay an income tax on IN
yestment income at the rate yet 10
be fixed for corporations. Mutual
insurance companies, other thah
life will be taxed at the same rate
on the net income as computed
under existing law, while all othet
insurance companies will pay the
corporation tax rate on their net
income as shown in statements re-
ouired to be furnished on standard
te forms to state tax commls-
loners. Other agreements reached
by the conferees included these
Struck out the LaFollette ameho-
ment requiring taxpayers IN max
ing their returns to list the tax
free securities held by them.
Adopted a compromise amend
ment exempting from taxation the
first $500 of income received by IN
dividuals from investments IN
building and loan associations, the
exemption to run five years from
next January l.
GIFTS To Charity.
Accepted the senate Amendment
striking out an original house pro-
vision allowing corporations to de-
duct from their income gifts 10
charitable organizations, proVldea
the total did not exceed five per
cent of the net income Of the con-
tributing corpoation. ..
Accented senate amendments
providing that where banks ana
corporations pay taxes for their
stockholders, they may deduct the
amount so paid in making their IN
come tax returns. The stockhold-
ers for whom taxes were so pald
would not be permitted, however,
to make q similar deduction IN
making their returns. -.
Accepted a senate amendment
exempting from taxation the rental
value Of dwellings, furnished 10
minister of the gospel as part OIL
his compensation. -.
Accepted senate amendment
exempting receipts received by IN
dividuals from ship owners mutual
protection and indemnity associa-
lions, not organized for profit.
Chairman Penrose of the senate
managers, said the conferees ex-
pected to finish their work tomor-
row, but the amended bill with
the conference report propapiy
could not be made ready for pre-
sentation to the house and senate
before late Monday.
Final action on the report might
he taken by Wednesday evening,
senator Penrose said, but he added
that this now looked doubtful.