Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-08-16
REVISED TAX BILL OF
ABOUT 10000 WORDS
PRESENTED IN HOUSE
CONTINUED from Page one.)

the new billNoutlines a general plaI
to tax American concerns doint
practically all their business in for
eign countries only on the income
received from American sources
They now are taxed on their entire
income, which, Is contended TO place
them at a disadvantage with COM
petiug foreign houses.
Personal service corporations
freed by the supreme court from
corporation taxes, would be brought
specifica ly under the corporation
income tax by the bill.
" Certain Exemptions.
Exemption from taxes would be
granted to farmers cooperative
purchasing organizations as wei
as selling organizations where this
materials purchased are turned
over to members of the organza.
tons "at actual cost plus neces'
sary expenses"
Under an amendment to the
estate tax sections of the present
law, amounts receivable as insur.
ance upon the life of a non-resi-
dent decedent and any moneys de-
posted in any bank, banking In
stitution or trust company in the
United States, by or for q non
resident decedent who was not en-
gagged in business in the United
States at the time of his DEATH
would be exempt from taxation.
Other Provisions.
Other provisions provide that
no amusement tax shall be levied
on admissions all the proceeds OF
which inure exclusively to the ben
eft of persons in military and ma
val service or to persons who have
served in such forces and are in
need; that the jewelers. tax of 8
per cent on eye glasses and spec
tacies, and the manufacturers tax
of per cent on portable electric
fans, shall be repealed and that
a tax of 10 per cent shall be i'm
posed on lenses for cameras weigh
ing not more than 100 pounds.
Among amendments to income
tax provisions is one permitting
after December 81, 1920, deduc-
ton of net loss from income OF
the succeeding taxable year. If the
net loss is in excess of the net in
come for the next taxable year
the bill provides that the amount
Of such excess shall be allowed as
a deduction in computing net in
come for the year. For the pres
ent losses must be taken for the
Year of which a return is made.
Stock Dividends Exempt.
Another amendment, drawn to
meet a supreme court decision,
provides specifically for the ex-
emption of stock dividends from
taxation, but says "a distribution
made by corporation to its share
h lders or members shall be in
cluded in the gross income of the
distributes as to the date when
the cash or other property is I'M
qualifiedly made subject to their
demands"
Legislative Features.
Among legislative features in the
bill is one giving the secretary of
the treasury authority to issue
$500, 900, 900 additional short dated
securities, making the total author
ization for such securities $780,
100000. Secretary Mellon wrote
the ways and means committee
last week that this additional au-
thority was necessary in order to
carry out the tax revision program
agreed upon at the White House
conference last Tuesday and PRO
vide further for the financing OF
the short dated debt"
Another legislative feature
amends the Liberty loan acts to
make clearer exemptions from in
come tax of the interest on Lib
erty bonds, but it was stated Off
cially that no substantial changes
in the amounts of such interest to
be exempted was made.
May Simplify Forms.
With a view to simplifying pres
ent tax return forms. the bill pro-
poses creation of a "tax simplifi-
cation board" to be composed OF
three members representing the
public, to be appointed by the
president, and three members, Of
ficers of the internal revenue bu-
reau, to be appointed by the sec
rotary of the treasury. the public
representatives to serve without
pay. The board would report
progress to congress each year and
would cease to exist after Deem
Der 81, 1924.