Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-16
TAX REV I !:
BILL CHANGED
IN THE HOUSE
Excess Profits Levy Repeal
Will Be Eff ective january
l.; Next Z /.
(By The Associated press.

- f 4 > ANS<AS ejSS5. ~ 500 q
(By The Associated Press. I ,;
Washington, Aug. 15. The admin:
tax revision bill Was laid
before the house of Representatives
today after the Republican members
of that body, in conference, had
the excess profits tax and the Ahcome
surtax rates in excess of 81 per cent
effective next January i, Instead ,sof
last January j. ft n NJ r x e
The change. on the basis OF previous
treasury estimates, would result I'D
the corporations and individuals with
large incomes paying to the govern
ment in the next calendar year sorne-
thing like $200,000,000 more than
they would have paid had the admin
istration plan of making the repeals
retroactive prevailed.
Total tax collections for the fiscal
year under the bill as revised were
estimated by some majority membe1s
of the ways and means committee At
$350.00o,00o. as against approximate
ly $soo.oo0.0oo planned by ronpdit-
tee Republicans. and theE total stax
yield at about $5,2oGog0Y000 :; sss5 /, y
Cut Income Tax. ~ i. sss,a~.-
AS a result Of the changess made
by the Republican conferences, major
ity committee members further
amended the bill before its presenta-
ton in the house so as to make the
corporation income tax 12 ~ zspers
cent after January /, instead ofri6
per cent as originally planned: and
the manufacturers tax on cereal bev-
ut NO S->>. .
~ cents. rs
To Come Up Wednesday.
Under plans adopted by the party
conference, the bill will be taken up
in the house Wednesday. Two days
will be given over to general debate
and two days to consideration Of
amendme ents under the five-minutes
rule, with amendments. of committees
members given preferences u
s. Democratic members Of the 1house
plan to hold a caucus tomorrow aft
ernoon to decide upon a course OF ac-
ton while the measure is under con-
sideration. IS, &
The Republican conf renee lasted
several hours with western members
leading the fight to reject the plan
Tor retroactive appeal Of thasasxcee4
profits and higher incamasaSSfasaiaIse 80
fr.AAASA' Ve-H' eeASSA dPoHE t1AS rSVutUS
House tax conference last Tuesday.
Representative Frear of Wisconsin, q
member Of the ways and means com-
mittee, was understood to have in.
sisted that the house pass on the ef.
fective date of the repeals, but the
conference finally adopted. ss to 81,
motion by; ,s;Representativ live Mann Of
illinois that the repeal. iaatsdsAsspa
ts.. Delay Until jan 4 sssfjssssass sss'ss
THESE changes carried With them
delay until next January / IN the
proposed increase OF per cent in
corporation income taxes. No change
in this figure was made by the con-
ference. but the committee members
decided to cut it in half is 1t was
contended that s per cent increase
would be unnecessary Ii. the sexeese
profits and the surtaxesaawere iMpos-
ed for this taxable year., &. q =
The tax measure as presented in
the house today is q bill ito reduce
, and equalize taxation. to amend and
simplify the revenue act of2,Is1S, and
/, for other purposes" Much of its 16.-
| ments of the administrative and de-
finitive sections Of the present law
which were drafted by. treasuryeex-
.perts with a view to clarifying spectf-
ic portions Of the 1918 act .and meet
ing situations arising from decisions
of the supreme court. - -I..aE--. 81
Repeal Rail Taxes
Aside from the revisions OF the lew
sections already referred to, the bill
proposes repeal Of all of the .transpor-
tation taxes effective next January Il !;
increased exemptions TO heads of fam
lilies and married men having incomes
of less than $4,000: decreases in the
I tlevies on candy, sporting goods, furs
and art and art works; the subsdtu-
! ton Of manufacturers taxes for the
so-called nuisance and luxury 4levies
and other changes, details of which
have been given in previous Associa-
ted Press dispatches.
Additional revisions include exemp-
ton from taxation Of the salaries OF
the president Of the United, States, and
the judges Of the supreme court, and
/ other federal courts, and also amounts
received by individuals as compensa-
ton. family allotments and allow-
ances under provisions Of the War
Risk Insurance and Vocational Re-
Mobilization acts.
A change also is made In life In
surance company taxation, the BILL re-
quiring them to pay the normal cor
porauon tax in lieu Of the levieS on
policies when written and all other
present taxes except the corporation
stock tax and certain stamp taxes.
Foreign Business. 4.
Another important section. OF the
new bill outlines a general plan to
tax American concerns doing pracE
ticaHy all of their business in foreign
countries only on the income received
from American sources.
!, Personal service corporations
would be brought specifically under
the corporation income tax by the
bill and provision Is made that II the
| partnership tax OF the 1918 act on In
dividual stockholders Of such corpor.
ations should be declared Invalid.
there shall. in addition to all other
taxes. be levied. collected and paid 4on
the net income received during the
calendar years 1918. 1919 and i93A,
by every personal service corpora
ton. tax equal to the tax imposed
under the excess profits and income
| surtax provisions Of the present laws;
Exemption from taxation would DO
granted to farmers cooperative pa,r-
chasing organization as well as to
selling organisations where the ma
terials purchased are oyer 10
members of the organizations at Ac-
tual cost plus necessary expenses. ~
I MAY BUY CROSBY THEATER Y
| Crosby, Aug. ls1sSR Baascn. i. who
is affiliated with p, W.. Myers III the
Strand and Arcade theaters in Mfnots
has q deal under way for I the pnrt
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