Evening star., 1921-09-16
NEW BILL TO RAISE
$1S,0)Q,oDOLESS
Senate Finance Committee
Adopts, Surtax Schedule
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With Reduced Taxes.

The Senate finance Somm1ttee to-
day edopted aschedule Of surtaxes on
personal incomes, which differs su,ae-
what from the House bali, giving
slight reductions in the taxes that will
have to be paid. rhe total loss Of
revenue under the committee plan, as
compared to the House bill. would be
SIS 200. 900.
Under the plan adopted by the
committee incomes from $500 to
$4,000 would pay no surtax; under the
House bill it would pay l per cent
surtax. Under the Senate committee
plan incomes from $4,000 to $1,000
would pay I per cent surtaX, as COM
pared to 2 per cent under the House
bill; incomes from 5000 to $10.eyO
would pay 2 per cenf,,as compared to
3 per cent in the House bill.
The surtaxes increase by l per cent
for each additional $4,000 income up
to all incomes over $66,000, which
would pay 80 per cent. the same as
in the House bill, except in the case
Of incomes between $4,000 and sea-
cent under the Senate committee plan.
In other words, the surtax on in
comes from $4,000 to 100000 is Z per
cent. while the surtax on incomes from
! $4,000 to $4,000 is 10 per cent.
The committee expects to complete
bill this afternoon, though it will
meet tomorrow morning to give at
tention to any loose ends that may be
found.
Modines Gain and Loss Rules.
The committee adopted the House
capital gain and loss provisions in a
modified form. The committee will
4
ital net gain on sale of capital assets.
but will provide. in the case of a net
loss, that the entire net loss may be
deduced. The House imposed a tax
of 12h per cent on capital net gain
and allowed only 12k per cent de-
The Senate committee adopted the
House bill tax on life insurance COM
panies. In the case of all other in
surance companies. however. the pres
ent policy of taxation will be re-
tanned, except. that the premium
taxes will be repealed on all classes
of insurance. The committee decided
to adopt the House policy relating to
| the taxation of foreign traders, with
certain technical amendments.
Building and Loan Returns.
Under the House bill building and
loan associations exempted from max
ing income tax returns are limited to
those making loans only to members.
1t was feared by the building, and
loan associations that this might ex-
clude the bulk of the building and
loan associations from the proposed
exemptions. So the Senate committee
will recommend that all building and
loan associations shall be exempt
from making income tax returns If
substantially all their loans are to
members.
After it votes finally on the bill the
comn1i ttee is expected to reject a
substitute to be offered by Senator
Smoot republican,, Utah, and embody-
ing a manufacturers tax on finished
articles. Senator Calder, republican.
New York. also planned to offer his
proposal to tax 2.75 per cent beer.
Treasury experts have yet to COM
plete their calculations as to the ad-
ditional revenue which will be re-
ceived through the changes thus far
agreed upon. but, roughly, 1t was
estimated that for ,this fiscal year the
bill would yield nearly $3;A50, 100000.
or almost as much as the present