Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-08-16
Revamped Tax Bill
Continued from PAGE Onel

The tax measure as presented in
the House is entitled "A bill to re-
duce and equali2e taxation. to amend
and simplify the revenue act Of 1918,
and for other purposes
Much of its 10000 odd words Of
text is devoted to amendments of the
administrative and definite sections
of the present law which We're draft
ed by treasury experts with a view
to clarifying specific portions of the
1918 act and meeting situations arts
ing from decisions of the supreme
court
Aside from the revisions of the
J levy sections already referred to. the
bill proposes repeal of all of the
transportation taxes. effective next
January |, increased exemptions to
heads of families and married men
having incomes of less than 5000
decreases in the leVies on CANDY.
sporting goods. furs and art and art
works; the substitution of man,,fac-
turers taxes for the so-called nui-
|! Sahce and luxury levies and other
/ changes, details of which have been
given in previous Associated Press
dispatches.
Additional revisions include ey-
emptlon from taxation of the salaries
or the President of the United States
ana the judges of the supreme and
INFERIOR federal courts ana also
! amounts received by individuals as
com pensation, family allotments and
allowances under provisions of the
war FISK insurance and vocational
rehubilitatio acts.
a change also is made in life in
surance company taxation. the hill,
requiring them to pay the normal
corporation tax in lieu of the levies
on policies when written and all
other present taxes except the cor
poration stock tax and certain stamn
taxes Foreign life insurance com
pahieS would pay on the net income
a,ohi sources within the United
States.
announcer important section of the
new bill outlines a general plan 70
HtX American concerns doing nrac-
ucaiiy all of their busiess in foreign
countries only on the incoma "a
celved from American sources Thev
now are taxed on their entire in
come winch. it is commended, places
them at disadvantage with connect
ing foreign houses.
Personal service cornorations
freed by the supreme court from,
corporation taxes, would be bro,,ebt
SpeciIically under the corporation in
come tax by the bill and provision e
niadc that if the partnership tax ~
me l9lS act on individual stool.
holders of such corporations -,
be declared Invalid, there shall in
a"a'tion to all other taxes, be lev;ad
corrected and paid on the net income
received during the calendar wears
IBIS 1919 and 1920. by eevrv nersopD
ID service corporation" tax eonoI
~ the taxes imposed under the ex-
cess profits and income surtax nro.
VISIONS Of the present law.
Exemption from taxation u,o,,,,,
De granted 10 farmers cooperative
purchasing organizations ana seIi-
ing organizations whore ire r,oter-
ials purchased are turned over 10
mem bers of the Organizations "a,
actual cost plus necessary exnen
ses''
DISTILLED spirits diverted to bever-
age purposes or in the manufacture
or any article intended for beverage
use would be taxed at the rate of
~ 20 gallon. the tax to be paid nv
the persons responsible for such di-
version.
Under an amendment to the estate
tax sections of the present law
amounts receiva BILE as insurance m
on the life of nonresident decd
eht- and any moneys deposited in
any bank, banking institution or
trust company in the United States.
py or for nonresident decedent
who was not engaged in business in
the United States at the time of his
death would be exempt from taxa
ton.
Other provisions provide that no
tax shall he Ieyiod ~