The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-09-22
TAX REVISION BILL
PRESENTED TO THE
SENATE YESTERDAY
Committee Urges That Measure
BE Considered as Soon as
Business Will Permit
DESIGNED TO RAISE
ABOUT SS,25O,OOO,OOO
Senator Underwood Obtains Con
sent to File Minority Report
Within Seven Days.

WASHINGTON, Sept. 2I.--The amend
ed house tax revision bill 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 measure be considered
as soon as other business Of the senate
would permit.
Designed to raise approximately three
and q quarter billions OF dollars in rev.
enue this fiscal year the amended meas-'
ure provides for:
Repail OF the excess profits tax on jan
uary /, 1922. as proposed by the house.
Reduction OF the maximum income sur
tax rate from 05 to 80 per cent effective
next January /, as provided IN the house
bin but with changes made in lower
brackets so as to reduce the amount Of
surtaxes paid BY all individuals.
An increase OF five per cent to fifteen
per cent in the normal corporation income
tax effective January /, 1922, in lieu Of
the 2M per cent advance agreed upon by
tile house.
Repeal Of the corporation capital stock
tax beginning In 1922. a new provision!
Reduction OF the freight and passenger
taxes from three to eight per cent to one
and half and four per cent. respectively,
effective next January 1, with their repeal
on January 1, 1928. The house proposed
repeal of all transportation taxes as Of
next January ].
An increase of $500 IN the exemption al
lowed to heads OF families having net in
comes Of $4,000 or less, a house provision.
An increase from $500 to S4o0 In exemp-
tions allowed on account Of dependents,
also q house proposal.
The finance committee concurred in the
house action In repealing the so-called
nuisance and luxury taxes collected di-
rect from the consumer and substituting
manufacturers taxes. These and other
minor changes In the bill previously have
been published.
An important change in the house bill
not heretofore made public deals with,
taxes on capital net gain. The senate
committee measure provides that II 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 taxpayers return and
only 40 per cent OF such capital net gain
shall be taken into account in determining
the amount OF the net income upon which
taxes are imposed by sections 210, 211
and ESQ Of this title (the normal income,
surtax and corporation tax sections). In
any such case the tax shall be collected
and paid upon the sum OF the amount or
DNuAnaHy net AACDAAc Plus ~ per iCCAb VI
tho amount Of the capital net gain"
The house bill provided that in tho
case OF any taxpayer. other than a cor
poration whose ordinary net income and
capital net gain together exceeded $29. 900.
the total tax imposed should be tho
amount Of the tax on tho ordinary net
income plus 1915 per cent OF the capital
gain. or minus 12h per cent Of the cap
ital net loss. as the case may be; but in
no case where a taxpayer derives a cap
ital not gain shall the total tax not be
less than 12is per cent OF the total net
income"
A change in tho present law agreed
upon by the finance committee provides
that IN the case Of a bonafide sale Of
mines, oil or gas wells. or any interest
therein. where the principal view Of tho
property has been demonstrated by pros
pecting and exploration and discovery
work done by the taxpayer, the part Of
the tax imposed by the income surtax
section OF the law Attributable to such
sale shall not exceed after this calendar
year 16 per cent OF the selling price Of
such property or interest"
The rate under the present law IS 90
per cent and it is continued for this cal
endar year.
When Senator Penrose offered the bill
Senator Underwood. Of Alabama, demo-
cratic leader obtained unanimous consent
for the filing OF the minority report within
seven days. Senator LaFollette OF Wis
consin. n republican member OF the III
nance COMMITTEES. also obtained consent
TO filo dissenting views within that time
should he decide to do so.