The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-11-12
Measure is Very Diff
ferent From Bill
That Came from the
House Goes to
Conference

proximately $3.50, 100000 Tor the
fiscal year ending next June 80 or
100000, 000 less than the existing
law. If all OF the changes propos-
ssed become effective, however, the
measure ultimately will reduce the
nations tax bill by approximately
$750 ,9D0, 900 year.
Senate conferees on the bill were
named as follows; Penrose, Me-
CMnnber and Smoot, Republicans;
Simmons and Williams, Democrats.
gHHe bill Is to be reported to the
house Wednesday mad Republican
! Readers plan on Thursday to send
IL to conference.
The senate during the day re-
4ected the two remaining soldier
bonus amendments and then pro-
ceeded to dispose Of the. other
amendments in rapid succession.
The debate on the Simmens and
zMcKellar amendments proposing to
utilize part Of the interest on the
foreign debt to finance adjusted
for the former SER
sSice psen consumed the first five
hours Of the session. Both propos-
als were rejected by decisive vSes,
the Simmons amendment, ~ tos@9.
and the McKeHar amendment, A
te The roll call on the Sim
mons amendment resulted as fol-
lows:
For amendment 2s. Against the
amendment 70.
Only two Republicans-La Fol-
1ette and Norris-supported the
McKel1ar amendment. while two
Hemocrat and Williams
Noked against il.
~ Without a roll call the senate
adopted an amendm enr by Senator
Eenroot. Republican, of Wiscon-
sfs under which the. net gain
made by q taxpayer on the sales
of stocks Of corporations would be
taxed at the full income normal
and surtu rates was agreed
) that under the committee bill only
40 percent. of such gain would
have been taxable because such
sales would have come under the
Z provision dealing with the taxation
sof gain from disposition of cap
ital assets.
;s Senator Lenroot declared that
under The original provision "stock
gamblers IN Wall street" would
have been able to escape taxation
on so per cent Of their profits. He
also, contended that stockholders
receiving stock dividends could con-
vert their earnings into cash and
escape taxation on so per cert. Of
the gain thus made.
Under an amendment by Senator
FreHnghuysen (Republican) Of
NeW Jersey. which was accepted.
any trade or business partnership
@or individual which was organized
within four months after the
passage OF the tax bill as a cor
operation might at the option OF the
partnership or individual pay the
Cooperation tax on the net income
recAyed from January. ], 1921, to
the date Of such organization. 1t
was provided, however. that this
option would not be extended in
the case of any business which
realized in the taxable year 1921,
90 per cent. or more profits on
the capital invested.
The senate adopted, 35 to 81, an
amendment by Senator Walsh
(Democra9 Of Massachusetts, pro-
Szyiding for a graduated tax on
Transfers Of property by gift by
eysry person" The rates range
from I per cent. Of the amount
Z by which the gifts exceeded $4,000
snd do not exceed $4,000 to 25
per cent. on the amounts IN eX-
cess Of $4,000, 900.
Thirteen Republicans joined the
Democratic minority in supporting
the amendment, which, it was eX-
planned, is designed to prevent
wealthy individuals from escaping
stle payment Of surrax through the
division CT their property among
their relatives.
BY vote of 81 to %, the senate
rejected an amendment by Senator
Jones tDemocral) Of New Mexico
Z proposing to allow partnerships and
individuals to elect whether. they
should pay taxes on the net income
from their business from the cor
poration or individual income rates.
On tie vote, 80 to 80, the SEN
ate rejected an amendment by SEN
ator Kenyon (Republican Of
Iowa proposing a tax equivalent to
& IS per cent. Of the value of tax
exeaapt securities transferred as
parts Of estates, providing such Sc
curities were issued six months af-
ter the passage Of the act. Pre-
viously, by a vote Of 33 to 25. the
senate had rejected an amendment
nv Senator La Toilette CRepubli-
scanl of Wisconsin, which would
nave imposed the same tax and also
80 per cent tax on the transfer
sof tax exempt securities issued be-
fore the passage of the act.
Taen, on motion Of Senator
p,onerene {Democrat1 Of Ohio. the
senate voted, A to "a, to make the
capital stock tax on all corpora