Norwich bulletin., 1921-09-22
TAX REVISION BILL WAS
 PRESENTED IN THE SENATE

Washington, Sept. 21.-The amended house tax revision bill was presented formally today to the senate by Chair man 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 con- sidered as soon as other business of the senate would permit.
 Designed to raise approximately three and a quarter billions of dollars in revenue this fiscal year, the amend ed measure provides for:
 Repeal of the excess profits tax on January l. 1922, as proposed by the house l Reduction Of the maximum income sur-taX rate from e5 per cent. to g per cent, effective next January ]. as provided in the house bill. but with changes made in the lower brackets SO as to reduce the amount of su1-taxes paid by all individuals.
 | An increase of , per cent. to 15 per cent in the normal corporation income tax. effective January 1, 1922. in lieu of the ? 1-2 per cent. advance agreed upon by the house.
 Repeal of the corporation capital stock tax. beginning in 1922, new pro vision.
 Reduction of the freight and passen- ger taxes from three and eight per cent. t o1 1-2 and per cent. respectively. effective next January l. with their repeal on January l, 1923. The house Sroposed repeal of all transportation taxes as of next January 1.
 An increase of $500 in the exemption al owed to heads of families having net incomes of S5,OOO or less, a house pro- vision.
 An increase from s2oo to s4oo in the exemptions allowed on account of de- pendents also a house proposal
 The finance committee concurred in the house action in repeating tl1a so- called nuisance and luxury taxes col lected direct from the consumer and substituting manufacturers taxes These an6 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 mea sure provides that if any taxpayer derives a capital net ain in any taxable year such canita net gain shall be stated separately from the ordinary net income in the tax
 payers return; and only 40 per cent
 of such capital net gain shall be tsller into account in determining the amoun of the net income upon which taNes ar' ! imposed by sections 210. 211 and 23'
 of this title Cthe normal income. sur tax and corporation tax sections) IT any such case the tax shall be collect
 ed and paid upon the sum of the
 amount of ordinary net indome plui forty percentum of the amount of thu carital net gain"
 The house bill provided that in thu
 case of any taxpayer. other than {; corporation whose ordinary net incom
 and capital net gain together eXc4ede
 s29. .oo0. the total tax imposed shoul
 be the amount of the tax on the ordi nary net income '''p'us 12 1-2 per cen tum of the capital net gain. or minu ! 12 1-2 percentum of the capital net loss as the case may be; but in no cas- where a taxpayer derives a capital ne
 gain shall the total tax be less than l
 1-2 percentum of the total net income. t A change in the present law agree . uDon by the finance committee provide g that In the case of a bona fide sale O t mines. oil or gas wells or any interes e therein. where the principal value Q the property has been demonstrated b
 prospecting or exploration and discov . cry work done by the taxpayer. tn S portion of the tax 'imDosed by the in s come sur-tax section of the law "attrif n utable to such sale shall not exceed a1 a ter this calendar year IS percentum C
 the selling rrice of such property 0 interest" The rate under the presen . 'aw Is 20 per cent and it Is continue 2 for this calendar year.
 . Republican leaders have not vet dt |, termined when the tax bill will h n taken up for debate but Senator Per = rose said today it probably would nc
 come up before Monday as it was d.
 sired to give members of the senate an
 pie opportunity to discuss it. He add . ed that there was a growing dispoSitio :, to consider this measure and the treat II with Germany alternately with the ia l' bil. debated during the day and tn
 treaty taken uD at night sessions. e When Senator Penrose offered II
 bill Senator Underwood. of Alabam;
 the democratic leader, obtained unan IS nous consent for the filing of the m d nority report within seven days Sen: d tor La Toilette of Wisconsin, a renubl se can member of the finance committe d also obtained consent to file dissentir T. views within that time should he d,
 eide to do 90.