Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-11-08
1863
|NuxkTEDl
i IRON
TAX BILL
I|l|l|lL|!| PEOPLE USE II
Continued from Page One)

~ i AA D1AA
Continued from Page One)
Penrose. MeCumber. and Smoot,
Republicans: Simmons and Williams,
Democrats. The bill is TO be report
ed to the House Wednesday aud Re
publican leaders plan on Thursday to
send it to conference.
During the day the Senate re-
jccted the two remaining soldier
bonus amendments and then pro-
ceeded to dispose OF the other
amendments in rapid succession.
The debate on the Simmons and
Mcclellan amendments. proposing to
utilize part Of the interest on the
foreign debt to finance adjusted
compensation for the former service
men, consumed the first five hours
of the session. Both proposals were
rejected by decisive votes. the Sim
mons amendment, AZ to 20. and the
Mcclellan amendment. "A to %. Cap
per. johnson, Kenyon, Laid, La Fol
lette ana Norris, Republicans. voted
for the amendment.
Only two Republicans, La Toilette
and Norris-supperted the Mcclellan
amendment, while two Democrats,
King and Williams-voted against
it.
Without a roll call the Senate
adopted an amendment by Senator
Lenroot. Republican, Wisconsin.
under which the net gain made by a
tax payer on the sales of stocks of
corporations would be taxed at the
| full income normal and. surtaX rates.
Senator Lenroot declared that I'M
! der the original provision stock
gamblers in Wall Street would have
been able to escape taxation on 60
per cent of their profits. He also
contended that stockholders receiv-
| ing stock dividends could convert
| their earnings into cash and escape
! taxation on so per cent of the gain
| thus made.
Under an amendment by Senator
Frelinghuysen, Republican, New Jer-
| sey, which was accepted, any trade
or business owned by~a partnership
| or individual which is organized
! within four months after the passage
| of the tax bill AS a corporation might
at the option of the partnership or
! individual pay the corporation tax on
| the net meme received from Jan. j,
1921 to the date of such organization.
| 1t was provided, however, that this
| option would not be extended in the
case of any business which realized
in the taxable year 1921, twenty per
/ cent. or more profits on the capital
| invested.
The Senate adopted, 81 to 81, an
amendment by Senator Walsh, Demo-
! crat. Massachusetts, providing for a
graduated tax ION transfers of prop
crty by gift by every person" The
rates change from one per cent. of
| the amount by which the gifts eX-
coed $4,000 and do not exceed $50
600 to % per cent. on the amounts in
excess of s1O,OO0.000
| Thirteen Republicans Joined the
! Democratic minority. in supporting
| the amendment. which. it was en-
| planned, is designed to prevent veal
| thy individuals from escaping the
payment of surtaX through the divis-
| ion of their property among their
| relatives. Republicans voting for it
were Capper, Cummins. Johnson,
! Jones of Washington, Kenyon, Ladd.
LaFollette, Lenroot. McNary, Nor
deck, Norris, Townsend and Willis.
| BY vote of 81 to %, the Senate
rejected an amendment by Senator
! Jones, Democrat. New Mexico, pro-
posing to allow partnerships and in
! dividuals to elect whether they
should pay taxes on the net income
| from their business at the corpora
! ton or individual income rates.
| On a tie vote, b to 81, the Senate
| rejected an amendment by Senator
| Kenyon, Republican, Iowa, propos-
| ing a tax equivalent to u per cent.
of the value of tax exempt securities
| transferred as parts OF estates. pro-
vided such securities were issued six
months after the passage of the act.
| Previously by vote of IS to %, the
Senate had rejected an amendment
by Senator LaFollette. Republican,
! Wisconsin, which would have i'm
posed the same tax and also ten
per cent. tax on the transfer of tax
exempt securities issued before the
passage of the act.
Senator Smoot, brought up the
sales tax again tonight and it was re-
jected without record vote.
demonstrating its former action.
the Senate voted to allow original
purchases of Liberty and Victory
bonds an exemption equal to the in
terest on money borrowed to pur-
chase or carry those bonds.
Then, on motion of Senator Pome-
rene. Democrat. Ohio, the Senate
voted, A to "a. to make the capital
stock on all corporations the same as
at present--one dollar on each 81 900
of capital stock in excess of 5000.
On motion of Senator Reed, the
Senate voted 81 to 81 to strike out
the Lodge amendments allowing
holding companies TO deduct from
their capital stock tax the amount Of
such tax paid on the stock Of their
subsidiaries.