The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-09-24
TAX Bill
BEFORE
SENATE
Debate on Matter Not
Likely to Start Be
fore Monday, Says
Committee Head

-
was presented formally today to
the senate by Chairman Penrose
Of the finance committee, who gave
notice that he would submit the
majority report tomorrow and
, urge at that time that the meas
ure be considered as soon as other
business Of the senate would per-
nit
Designed to raise approximate
~ three and a quarter billions Of
! dollars in revenue this fiscal year,
the amended measure provides
for:
Rcpcal of the excess profits tax
on January l, 1922, as proposed by
the house.
Reduction Of the maximum in
come surtaX rate from 65 per cent
10 80 per cent effective next jan
uary l, as provided in the house.
but with changes, made in the low
er brackets so as TO reduce the
amount Of surtaIes paid by all in
! dividuals.
An increase Of 5 per cent to Is
per cent in the normal corporation
income tax, effective January l,
1922, in lieu Of the 2 1-2 per cent
advance agreed upon by the house
Repeal OF the corporation CAPT
tai stock tax, beginning in 1922, a
new provision.
Reduction of the freight and pas
senger taxes from and 8 per cent
to L 1-2 and per cent respective
~, effective next January l, with
their repeal on January /, 1923
The house proposed repeal of al
transportation taxes as of next
January l.
An increase Of $500 in the ex-
emption allowed to heads of fami'
lies having net incomes of $4,000 OF
less, a house provision.
An increase from $500 to s400
in the exemptions allowed on ac-
count of dependents, also house
proposal.
The finance Committee concurred
in the house action in repeating
the so-called nuisance and luxury
taxes collected direct from the con-
! suHer and substituting inanufac-
turers' taxes. These and other mi
nor changes in the bill previously
have been published.
An important change in the
house bill! not heretofore made pub
lie deals with taxes on capital net
gain. The senate committee meas
i IRE provides that if any taxpayer
derives a capital net gain in any
taxable year, "such capital net gain
shall be stated separately from the
ordinary net income in the taxpay-
er's return; and only 40 per cent
of such capital net gain shall be
taken into account in determ!-.,-s :
the amount of the net income upon
which taxes are imposed by sec
tons 2l0, 211 ard 230 Of this title
corporation tax sections) in any
such case the tax shall be collected
and paid upon sum Of the amount
of ordinary net income plus 40 per
centum of amount Of the capital
net gain
The house bill provided that in
the case Of any taxpayer, other
than corporation, whose ordinary
net income and capital net gain
together exceed $4,000 the total
tax imposed should be the amount
of the tax on the ordinary net in
come plus u il per centum OF
the capital net gain, or minus IL
1-2 per centum Of the capital net
loss. as the case may be; but in no
case. where taxpayer derives a
capital net gain. shall the total tax
be less than y i-2 per centum OF
the total net income"
Republican leaders have not yet
determined when tie tax. bill will
De taken up for debate. but Sena-
tor Penrose said today it probab-
" would not come up before Mon
day as It was desired to give mem
bers OF the senate ample opportun-
lty to discuss it. He added that
there was growing disposition to
consider this measure and the
treaty with German alternately
with the tax bill debate during
the day an dthe treaty taken up at
night sessions.
! When Senator Penrose offered
the bill. Senator Underwood, OF
Alabama. Democratic leader. oh.
tanned unanimous consent for the
fling Of the minority report with
in seren days. Senator La Fol
lette. Of Wisconsin. Republican
member of the finance committee
also obtained consent to file dis.
sentjng views within that time
should he decide to do so.