The Washington herald., 1921-09-14
ACCEPTS HOUSE
BILL in EXCESS
PROFITS LEVY
Senate Committee Gives
Up Retroactive
Proposals.
PLANS TO RAISE
CORPORATION TAX
Favors Repeal of Stock
+ Tax, Effective on
July 1, 1922.

The Senate Finance Committee
definitely has decided that the re-
peal of the excess profits tax shall
be made effective January l, 1922.
Thi: means the tax will apply dur
ing the current year.
The committee, in reaching this
decision, concurs in the provisions
of the tax bill as passed by the
Housee. 1t repudiates the recon-
mendations of the administration,
made through Secretary Of the
Treasury Mellon, that the repeal be
made retroactive to January /,
1921.
The argument for retention of the
tax is that the year has so far ad-
vanced that the tax already has
been passed along to the ultimate
consumer, and that its repeal at
this late date would be of no benefit
to the taxpayer.
Vote Is Unanimous.
were united in favor of the repeal
in 1922, with the exception of Sena-
tor La Toilette, of Wisconsin.
Senators Penrose, OF Pennsylvania
and Calder. of New York, and per-
haps others, favored making the
repeal retroactive, but when the
vote came II was unanimous. Demo
cratic members of the committee re-
Trained from voting.
Other important decisions of the
Finance Committee include the fol-
lowing:
Imposition of Is per cent tax on
corporations, instead of a 1914 per
hn l.
effective January !, 1922.
For Stock Tax Repeal.
lsepeal of the capital stock tax,
effective July l, 1929.
elimination of the House pro-
vision, exempting the salaries OF
the President and officers of the
judiciary from income tax.
agreed on clause compelling all
persons having a gross income of
$1,000 or more to file an income
faN return, whether the income is
taxable or not.
Struck out House provision al
lowing corporations to deduct from
taxable income contributions made
TO charity.
Eliminated House exemption OF
$500 on income received from build
ing and loan associations.
Eliminated House provision ex-
emptlng from income taxes the ex-
penses of travelling statesmen while
they are on the road.
Transportation Tax Undecided
The important question of the
transportation tax remains to he
decided at later meeting Of the
committee, although 1t Is indicated
this tax will remain in effect as
the House bill provides. In addi.
tion, there Is virtual agreement
that the taxes on express packages
and the, transportation of oil. re.
pealed by the House, will be re.
stored. These taxes would bring
into the Treasury about $40. 600. 600
1t Is indicated also that the tax or
candy will be restored to pe,
cent from the per cent to which
u was reduced by the lower cham.
Der. The tax on tobacco will prob.
aoly be left as II is, although this
is regarded as a source of revenue
that can be tapped If there is need
VIII Complete Bill Friday.
According to Senator Penrose
committee chairman, the bill will
be completed by Friday, giving spe.
cialists an opportunity to prepare
II for presentation to the Senate
Secretary of the Treasury Mel.
lon' meantime, has been asked fol
specific information on expected
economies. so the expected yield
may be made to agree with ex-
penditures. At present the bill Is
oeing designed to bring in s3,2O0,.
100000. a figure somewhat under
that contemplated by the House.