Norwich bulletin., 1921-08-16


 the house refused today to approve the administration plan to make repeal of The excess profit tax and the reduction of the income sur-taxes to 32 per cent. retroactive to last January 1. Under the conference decision, these changes, as well as the 5 per cent. increase in the cooperation income tax would go into force next January l,
 The vote 10 make the change in the committee bill was es to sI. No other alterations .a the draft as presented to the conference was made. The mem hershin also adopted a special rule un- der which the vote on the bill will be taken at three ?. m- Saturday.
 The tax measure as presented in the house is entitled "a bill to reduce and equslize taxation. 10 ahmed and sim pi.fy the revenue act of 1918, and for other purposes" Much Of it's 16,0OO words of text is devoted to amendments of the administrative and defnitive sec tons of the present law which were drafted by treasury experts with a view to clarifying specific portions of the 1919 act and meeting situations arising from decisions Of the supreme court.
 Aside from the revisions of the levy sections already referred to the bill pro- poses repeal of all of the trsnsporta- ion taxes. effective next January l, in- creased exemptions to heads of fami- les and married men having incomes rf less than S5.00O, decreases in the e~ies on candy. sporting goods, furs and art and art works ; the substitution Of ranufaeturers' taxes for the so-called nuisance and luxury levies and other .fsr~es. details of which have been ..-.1 in previous Associated Press dis patches
 Exemption From Taxation.
 Additional revisions include exemption rom taxation of the salaries Ot the ,res.dent Of the United States and the judges of the supreme and inferior fed .raI courts and also amounts received ,v individuals as compensation, family aIlotments and allowances under provi- s'ons of the war risk insurance and vo- ,ational rehabilitation acts.
 X change also is made in life in surance company taxation, the bill re- 1ui-lnr them to pay the normal corpora tIon tax in lieu of the levies on poli- -i-s when written and all other present axes except the corporation stock tax snd certain stamp taxes. Foreign liIe Irsursn nee companies would pay on the -et income from sources within the Unit sd States.
 Business in Foreign Countries.
 Another important section of the new 5sll outlines a general plan-to tax Amer can concerns doing practically all or heir business In foreign countries only pr the income received from American sou-ces They now are. taxed on their -ufi-e income. which is contended to place them at a disadvantage with com refi-- foreign houses.
 Personal service corporations, freed by the supreme court from corporation tax sv would be brought specifically under tNe corporation income tax by the bill s-.r provision is made that fl the part nerEhip tax of the 1918 act on individual t.r.kho.Ia-s of such corporations shoulu br declared invalid. there shall. in sddi- -f7n to atI other taxes. be levied collect eJ and paid on the net income received ...,r--~ the calendar years 1918. 1919 and 1ssn. by every personal service corpor- --.r" a tax equal to the taxes im- posed under the excess profits and in air-taxos provisions of the pres ,nt law. r-a--eI Co farmers cooperative pur- .r-r--- or-aniza tions, as well as the sslnE organizations, where the ma .ss purchased are turned over to the members of the organizations "at actual -osl plus necessary expenses.
 .u.stlIeI spirits diverted 10 beverage 7.r--r--z or in the manufacture of any i-ticle intended for bevarage use would 5e taxed at the rate of A.2o gallon lax 70 be paid by the person respon- sbls for such diversion
 f-ofer an amendment to the estate tax a-effens of the present law amounts re- -efvsbIe as insurance upon the life of non-resi dent decedent and any mon
 --n0z.ted in any bank. banking in- st.tution or trust company in the United states by or for a nonresident deced- --t who was not engaged in business in he United States at the time of his death would be exempt from taxation.
 Other revisions provide that no sr7usement tax shall be levied on adrns- sions sll the proceeds of which inurr exclusively to the benefit of persons in frr -raft-7rv and naval service or to osr-ons sho have served in such forces End .rs i7 nssSa that the jewellers tax a- five ner cent on eye glasses and spec facIes and the manufacturers tax of Eve per cent. on portable electric fans shaU be repealed and that tax of 10 per cent. shall be imposed on lenses for cameras weighing not more than 100 pounds.
 Administrative Features.
 Some of the new administrative fea- .ures In the bill are designed to speed rn settlement Of claims involving back ayes. estimated 10 total S1,5o0, 000, 900 Ire time for determination and final tsssssnent of any tax due under the new bill would be three years after he return was filed, instead of five as tt present and the amount of tax due fnder any return made under prior tax rcts would have 10 be determined and assessed within Eve years after the re- urn was made, unless the commissioner ,f internal revenue and taxpayers con- rented Tn writing to a later time.
 r-9vision also is made that no suit sr procee eedings for collection of taxes -,ail b. begun after the expiration of svs years after the date the return is H-aI The hill also declares that after
 determination and assessment in any ease if the taxpayer has without protest paid in whole or part any tax, and an agreement is made in writing between lhe taxpayer snd the commissioner with Inc approval of the secretary of the treasury. the ease shall not be reopen ed and mo suit or action to change such determination or assessment shall be entertained by any court of the Unit. ed States"
 After an assessment is made and be- fore final payment of the taxes due in. terest on the amount would be comput. ed at the rate of six per cent. year, in- Essad of 1 per cent. a month, as at present
 Inc0me Tax Provisions.
 Among amendments to income tax provisions IS one permitting after De.