Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-09-22
TAX MEASURE |5
INTRODUCED II
SENATE;F FAMILY
HEADS FAVORE D
Amended House Bill Is Pre-
Sented By Chairman PEN
rose; Married Mems Ex-
ennption Increased $500.
MAXIMUM SURTAX ON
INCOMES REDUCED
So7CaIIed Nuisance and
Luxury Levies Are Re-
peaIed and Manufacturers
Taxes Are Substituted,

Washington, Sept. 21.-The
amended house tax revision bill
was presented today to the senate
by Chairman Penrose of the fl
nance committee, who gave notice
that he would submit the majority
report tomorrow and urged that
the measure be considered when
other business permits.
Designed to raise approximately
three and q quarter billion dollars
in revenue this fiscal year, the
amended measure provides:
Repeal of the excess profits
January /, 1922, as proposed by
the house.
Income Surtax Rate.
Reduction of the maximum in
come surtax rate from 65 per cent
to SO per cent, effective next jan
uary /, 'as provided in the house
bill, but with changes made in the
lower brackets to reduce the
amount Of surtaXes paid by all in
dividuals.
An increase of 5 per cent to Is
per cent in the normal corporation
income tax, effective January /,
1922, in lieu of the . 1-2 per cent
advance agreed upon by the house.
Repeal of the corporation capi-
tai stock tax, beginning in 1922,
a new provision.
Reduction of the freight and
passenger taxes from and per
cent to f-2 and 4 per cent, re-
spectively. effective next January
}. with their repeal January l,
1929.
The house proposed repeal of all
transportation taxes as Of next
January ].
An increase of $500 in the ex-
emption allowed heads of families
having net incomes of $4,000 or
less, house provision.
Increase in Exemptions.
An increase of $500 to S400 in
the exemption allowed on account
of dependents a house proposal,
The finance committee coucurred
In the house action in repeating
the so-called nuisance and luxury
taxes and substituting manufac-
turers' taxes. These and other
minor changes previously have |
been published.
taxes on capital net gain. The SEN
ate committee measure provides |
that IL any taxpayer derives cap
ital net gain in any taxable year. |
"sucl. capital net gain shall be |
stated separately from the ordi- |
nary net income in the taxpayers !
return: and only 40 per cent of |
such capital net gain shall be talk |
en- into account in determining the |
amount Of the net income upon |
which taxes are imposed by Sec
tions 210, 211 and ESQ of this title |
(the normal income, surtax and |
corporate tax sections). In any |
such case the tax shall be con-
talned and paid upon the sums of |
the amount of ordinary net in
come plus 40 per centum of the |
amount Of the capital net gain"
Incomes Exceeding $4,000
The house bill provided in the
case Of any taxpayer, other than |
a corporation, whose ordinary net
income and capital net gain to-
gether exceeded $4,000, the total
tax imposed should be the amount
of the tax on the ordinary net in
come. plus IL 1-2 per centum of
thcapital net gain, or minus IL
1-2 per centum of the capital net
loss, as the case may be; but in no
case where taxpayer derives a
capital net gain, shall the total tax /
be less than 10 IL per centum of
the total net income"