Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-09-22
Night Sessions Being
Considered to Clean
Up Heavy Senate Slate
Tax Measure Will Be
Made First Business ;
Peace Treaties Next.

Washington, Sept. 21.-Receipt by
the senate of the tax revision bill from
the finance committee and of the peace
treaties with Germany. Austria and
Hungary from President Harding were
features of the re-assembling Of con-
gress Wednesday after it's 80 day re-
cess.
Only brief sessions were held. A
Democratic attack on President Hard
ing and administration policies feat
ured the opening, after which the SEN
ate adjourned until Thursday, and the
house, under its agreement to transact
no important business until October 4,
adjourning until Saturday after per-
functory meeting Three day recesses
will continue until next month.
In the senate the peace treaties were
referred to the foreign relations COM
mittee which will begin their consid-
Grafton Thursday. Little time would
be required by the committee, Senator
Lodge said. Night sessions of the SEN
ate, Republican leaders said, were be-
ing considered
Senate debate of the treaties. Sena-
tor Lodge announced, would be in
open session.
Consult With President.
Senator Lodge, Senator Sterling, and
other Republican leaders. conferred
ate program, which is admittedly con-
gested. The immediate program, it
was announced, was to expedite the
tax bill and the treaties. Debate on
the former probably will begin Monday,
with the anti-beer bill fight to continue
at available opportunities. The treat
les, also, it was said, would be "sand-
wiched in
The railroad debt funding bill is
expected to follow the tax measure,
while the technical unfinished bust
ness is the Borah bill to restore free
tolls to American coastwise vessels
using the Panama canal This is fixed
for a vote October 10, with the tax
measure being given place in the mean
time.
Numerous bills and resolutions were
introduced and large crowds in the gal
cries of both senate and house wit
aessed the reconvening.
The amended house tax revision bill
as presented to the senate by Chairman
Pelrose, Of tne finance committee.
who gave notice that he would submit
the majority report and urge that the
measure be considered when other
business permits. provides:
Repeal to the excess profits January
l, 1929, as proposed by the house.
Reduction of the maximum income
surtax rate from G5 per cent to 30 |
per cent effective next January l, as
provided in the house bill. but with |
changes made in the lower brackets |
to reduce the amount Of surtaxs paid |
by all individuals.
An increase Of five per cent to Is
per cent in the normal corporation in
come tax. effective January 1, 1922. |
in lieu of the > IL per cent advance /
agreed upon by the house.
Repeal Of the corporation capital
stock tax beginning in 1922, a new
provision.
Cut All Rail Rates.
Reduction of the freight and pas
scnger taxes from three and s per
cent to l IL and four per cent re-
their repeal January l, 1923.
The house proposed repeal Of all
transportation taxes as of next Jan
uary l.
An increase of $500 in the exemp
ticn allowed heads of families having
net income of $4,000 or less. a house
provision
An increase from $500 to S4O0 in the
exemption allowed on account of de-
pendents, house proposal.
The finance committee concurred in
the house action in repeating the so
called nuisance and luxury taxes and
substituting manufacturers taxes.
These and other minor changes pre-
yiouvly, hova hoau puhIiShaI
An important change deals with
taxes on capital net gain. The sen
ate committee measure provides that
if any tax payer derives a capital net
gain in any taxable year "such capital
net gain shall be stated separately
from the ordinary aAt income in the
taxpayers return: only forty per cent {
Of such capital net gain shall be taken
into account in determining the amount
Of the net income upon which taxes are
imposed by section 21O. 211 and 23O
of this title, (the normal income. sur
tax and corporation tax sections)
In any such case the tax shall be
collected and paid upon the sub of the !
amount of ordinary net income plus 40
per centum of the amount of the capi-
tai net gain. y
The house bill provided in the case Of
any taxpayer other than a corporation
whose ordinary net income and capi- .
tai net gain together exceeded SO, {
600, the total tax imposed should be {
the amount Of the tax on the ordinary /
net income plus" half per centum Of 8
the capital net gain, or. minus 1871 per i
ease may be but in no case where a
taxpayer derived capital net gain.
shall the total tax be less than 121h
Der centum of the total net income"