The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-11-20
TAX REVISION tn
Be RETURNED TO
HOUSE MONDAY
Bill Goes Through Its Third
Rewriting - Estimated
Revenue From Bill Is
Cut Further

Washington, November 1a.-The
tax revision bill came through its
third rewriting today and will be re-
turned TO the House on Monday. Re-
publican leaders are hopeful that the
final step in its enactment can be
taken in time to permit Congress to
end its special session Wednesday,
as planned.
Only five of the 10 conferees On
the bill have signed the conference
report. The democrats refused to
sign and one OF the six republican
managers, Senator smoot of Utah. on
account of the sales tax withheld his
signature. He said it was his inten-
tion to study the bill to sec whether
it was any Improvement over existing
law before reporting decision as to
giving it his approval
Opposition to Some features of the
bill is expected to develop in the
House and Senate. House leaders
plan, however to put the bill through
the House Monday after four or five
hours of debate, SO that the Senate
Will have two days to consider it be-
for adjournment of Congress.
Leaders of the republicans in
the House who bo1ted ON the sur
tax amendment said today that
while some republicans were OPP
posed to the action of the con-
ferees In striking out Senate
amendments providing for in
creased inheritance taxes, and
for making income tax returns
available to Congress, there
would be no organized opposition
TO the bill.
Sentiment on the bill, had apparent
~ not crystalized tonight, but leaders
anticipated considerable discussion
from both sides of the chamber.
Should Senator Smoot decide finally
not to sign the conference report, it
is stated he plans to present his rea-
sons In an address to the Senate.
In winding up their work on the
measure today the House and Senate
managers fixed the corporation in
come tax rate at 12iz per cent, the
figures in the original house bill This
increases the present rate by 2a per
cent. but is az per cent below the
figure agreed upon by the Senate.
beer, Wine and Whisky.
In lieu of the Wadsworth amend
ments taxing industrial alcohol and
peer. vino and whisky, used for
medicinal purposes, the conferees
agreed TO the original House proyi-
sion relating to liquor taxes. This
retains the present tax of 1920 q
gallon on Distilled spirits with a
provision for an additional tax CT
S420 a gallon on such spirits diverted
for beverage purposes. This TAX
would be paid by the person re-
spa sible for such diversion
The conferees retained the Senate
amendment repeating the normal ex-
emption Of $4,000 allowed corpora
lions. but the repeal would not apply
in the case of corporations having net
incomes of $4,000 or less.
The Walsh amendment. proposing
tax ranging from / per cent TO 70
per cent on gifts of property by per-
sons, was eliminated This was de-
signed, according to its author, to
prevent evasion of the surtax by
wealthy individuals dividing their
property among their relatives.
Capital Assets.
A new provision for taxing gain
from the sale of capital assets was
written into the bill. 1t Is limited
to individuals and provides that II
the taxpayer elects to make separ-
ate return for the taxation of his in
come from the sale of capital assets
he shall pay tax on the gain at the
corporation income rate of 12h per
cent on the total of the gain. The
Lenroot amendment, excluding stock
OF corporations from capital assets
to be SO treated. was eliminated.
The managers retained the Senate
amendment imposing tax OF cents
a gallon on fountain syrups used In
the manufacture of carbonated bever-
ages prepared for sale in closed con-
tainers. This is In addition to tax
of 2 cents a gallon on such beverages
Reduce Return ON Bill.
In reducing the proposed corpora
ton income tax rate the conferees
reduced by $3.50 100000 the estimated
return from the bill. Treasury ex-
perts had calculated that the Senate
rate would yield $3.50. 100000 addi-
tional from the corporations the in
crease through this source being de-
signed as a partial offset against the
loss of $450,e00 600 to result from re-
peal of the excess profits tax.
Repeal of the gifts tax amendment
and the change in the taxation of
distilled spirits also resulted in fur
Their cuts in the estimated revenue.
but accurate figures were not obtain
able. Some estimates were that from
$3.50. 900, 900 to $200.0oo,o00 had been
cut from the bill, which, as 1t passed
the Senate. was designed to yield ap-
proximately $4,000. 100000, or slightly
less than the total treasury officials
told the Senate finance committee in
September would be necessary for this
fiscal year.
Chairman Penrose, OF the Senate
managers, however. said the bill as
finally amended by the conferecs was
entirely adequate" for the immediate
revenue needs of the government but
total yield
8-E00T MINIMUM