The Birmingham age-herald., 1921-11-08
BILL ESTIMATED
 TO REDUCE TAXES
 BY 750 MILLIONS
(Continued from Page onrD


 Capper, Johnson. Kenyon. Ladd, La Toilette and Norris-6.
 Democrats: Ashurst, Broussard, Culberson, Fletcher, Gerry, Harris, Harrison, Heflin, Jones, New Mex ico; Hendricks, MeKellar, overman Pittman, Pomerene, Reed, Sheppard, Shields, Simmons, Stanley, Swanson Walsh. Massachusetts, Walsh, Mon tana, and Watson, Georgia-23. To- tai %.
 Against the Amendment--Repub cans: Ball, Borah, Brandegee. Bur sum, Cameron. Cummins, Curtis, Edge, Ernst, Fernald, France. Frel- inghuysen, Gooding, Hale, Jones, Washington, Reyes, Lenroot, Lodge, McCumber, Mckinley, MeNary, Moses, Nelson, New, NewberrS, Nicholson, Norbeck. Oddie, Page, Penrose, Phipps, Poindexter, Shortridge, Shoot, Spencer, Sutherland, Town send. Warren, Watson, Indiana; Well Ter and Willis--4l.
 Demoerats: Myers---1. Total 42.
 only two republicans--LaFol and Norrfs-supported the Mckellar amendment, while two democrats-- Kings and Williams-voted against 1t.
 Adopt Lenroot Amendment
 Without roll cali the Senate adopted an amendment by Senator Lenroot, republican, Wisconsin, un- der which the net gain made by taxpayer on the sales of stocks or cor porations would be talked at the full income normal and surtax rates. It was agreed that. under the commit tee bin only 40 per cent of such gain would, have been taxable be- cause such sales would have come un- der the provision dealing With the taxation of gain from the disposition of capital assets.
 Senator Lenroot declared that un- der the original provision stock gamblers in Wall street" would have been able to escape taxation on 50 per cent of their profits. He also contended that. stockholders receiv- ing stock dividends cculd convert their earnings into cash and escape taxation of 60 per cent of the gain thus made.
 Under the amendment by Senator Freylinghuysen, republican, New Jer- sey, which was adopted. any trade or business owned by partnership or individual which was organized within four months after the passage of the tax bill as a corporation might at the option of the par artnership or inulNluudi Day thC Nbipoia iaetNii ''-> NAi the net income received from January 1, 1921, to the date or such organiza- tion. 1t was provided, however, that this option would not be extended in the case of any business which realized in the taxable year, 1921, t20 per cent or more profits on the capi- tai invested
 Transfers of Property
 The Senate adopted, S5 to Sl, an amendment by Senator Walsh. demo- crat, Massachusetts. providing for a graduated tax on transfers of prop erty by gift by every person." The rates range from l per cent of the amount by which the gifts exceed SEQ, GOO, and do not exceed $50,000 to 25 per cent on the amounts in excess of $l0.000. 900.
 Thirteen republicans joined the democratic minority in supporting the amendment. which it was ex- plaincd Is designed to prevent wealthy individuals from escaping the payment of surtak through the division of their property among their relatives. Republicans voting for 1t were capper, Cummins. John son. Jones of Washington; Kenyon, Ladd. LaFollette, Lenroot, McNary, NorbeclS, Norris, townsend and Will lis
 By vote of 37 to 21, the Senate rejected an amendment by Senator Jones, democrat. New Mexico, pro- posing to allow partnerships and in- should pay taxes on the net income from their business at the corpora tion or Individual income rates