New-York tribune., 1921-08-20
so Changes in
'ProposedTaxes
Made in House
lew on Beverage Vendors
Dropped; Many Minor
Amendments Are, Adopt
ed Without Contest
Charity Gifts Exempted
Toll on Near Beer and Pro-
prietary Medicines May
Be Reduced To-day

,slf A hundred amendments to the Re-
.nh,can tax bill, most of them Of minor
;nnortance, we're accepted to-day BY
,hs House in five hours session
uarked by occasional clashes between
he majority and minority and = re-
,swal Of the personal controversy be-
,.wsen Chairman Fordney. Of the Ways
and Means Committee and Represent
,ot;ye Byrnes. Democrat. of South
Carolina.
number Of other changes in the
Bill. including elimination Of the pro-
visions for per cent tax on the
manufacturers of proprietary medi
aues, tooth powder and paste and
mouth washes. and a reduction in the
,zx on cereal beverages from six to
four cents gallon are expected to be
proposed tomorrow by the Ways and
Means Committee before the measure
!, passed late in the day.
Republicans and Democrats Of the
House were q unit to-day N approving
one amendment, that striking out the
section OF the bill imposing an annual
license tax of $40 on vendors of soft
drinks. On few other changes there
we're sharp divisions, but many of the
minor ones merely changing language
ii punctuationn we're. put through
voting on the "yea' and may" calls.
Ia rn
posed were adopted.
No Tax on Charity Gifts
Under one amendment approved over
Democratic opposition, corporations
making gifts for charitable purposes
would be relieved from tax on such
sums unless they exceeded per cent
OF the net income of the donating COM
Dany.
The big fight of the day was over an
amendment defining foreign trade cor
poraticns such domestic corporations
as derive so per cent or more of their
gross income from the active conduct
Of business outside the United States,
and similarly ar foreign traders those
American citizens who derive 80 per
cent or more of their gross income
from sources outside Of this country.
TIE Democrats said this proposal
was discrimination against purely do
nestle corporations in the matter OF
taxes. The Republicans defended it on
The ground that it was necessary to re
lieye foreign trade corporations and
fcreign traders from, taxation on in
e5me received from sources outside the
scuntry in order that they might COM
pete with foreign concerns.
The amendment was adnrfad 1f}S ..<s
s.. eleven Republicans joining in the
negative vote.
One Of the principal snendment g
approved to-day by the whole commit
tee provides for creation Of tax in
yestigating commission which would
inquire into:
Effect upon the Federal revenues of
tax exempt state and municipal securi-
ties.
Effect OF existing differences in law
between the Federal taxation of in
divldaals and partnerships and of cor
porations.
The taxation OF expenditures and
The reduction Of the tax rates upon
savings, as means for raising revenue,
Stimulating thrift, and redistributing
the burdens of taxation. and the ef-
fects Of income and profits taxes upon
liquid capitals.
The commission would make yearly
reports to 10th the President and Con
gress and consists Of nine members
three Senators and three members OF
the House, appointed by the presiding
ohcers. ard three representatives, OF
the public. appointed by the President.
kitchin Files Views
The views Of the minority on the
TAX bill, written BY Representative
k.tchin, OF North Carolina, ranking
Denocra. on the Ways and Means
Committee, who is III at his home in
North Carolina. were filed with the
House to-oay by Representative Old
aeld, Democrat, CT Arkansas. While
announcing Democratic opposition &c
many provisions OF the BILL" Mr.
AitcnS confined mis- report to what he
termed the rwo principal provi sons
VI The Republican tax program re
peal Of the excess profits tax and the
saostitution Of d 2ls per cent in,
crease in tire corporation income tax
and elimination Of the surtax income
rates IN excess Of 80 per cent.
Ane North Carolina member declared
'spesl OF tae profits tax would be "ar
ABSOLUTE surrender 20 and obedience
81 the Will and command of the big
corporate interests and one Of the
aost vicious pieces Of legislation that
Tas ever proposed or advocated openly
oy any public man since the beginning
o. the government"
II demonst-ates," he added, "the
.ees mat tne member voting for it will
zno must look hereafter TO these cor
TcT ~ L
'asn 20 the plain people"
ar kltchin renewed the charge made
~ rs recent telegram TO the Demo
cratic Caucus that the profits tax re.
ysas you'd benefit the rica corpora
.'ons a. the expense 81 the moor and
=. - Sopp2rt his argument gave figures
sn'cn he declared were obtained from
.<s annual reports Of the Commissioner
'' Internal Revenue.
$4,000, ,eoo, 900 Prost
Dse'sfing the reports showed TIA
~ AZ, aes2,r19orosions in this country mad.
'e,s 'e.,sss''p'V'gpeo profit from January /
ss;% s -. % January /, 1921, DIR. Kitchil
ss.. tnas after deducting income, ex
80 D.DN.s ard other war taxes. the,
~ c,ear profit ls;t of s3e, 900, 900 900
nsS. 49, nan fclrAfths Of which va
sts .ra % less than 10000 corporation
s@ = !, ..e,s ~ 'nan hall Of which was mad
,s.;s ;,s2z' .; re DIX profseering corpo
d. ~, :, "n'cn includes the steel trust
,se Bethlehem Steel Company tbe Du
fsa' companies, the various standart
w. ". eSn oag'es, the coal combine. tn
"ss5ea s,,s trust. The nes. packers. etc"
x..:s n:nsE an 'mpregnable position +
,-.o ne,' said Mr. Kitchin, "and wha
~ spyeal u would make 70 the senx.
Il. sfas and justice Of the people, sol
-. Dstaocfats % taka The poxitiol