New-York tribune., 1921-09-17
life Insurance Tax Is 15 Fer Cent


The committee adopted the tax in
surance policy of the House as to life
insurance companies. The tax is on
the investment income and will be Is
per cent from January /, 1921. Pre-
MUM taxes are repealed January l,
1922, and the capital stock is repealed
as OF July /, 1922. In the case of all
other insurance companies under the
plan which the committee to-day adopt
ed the present policy of taxation will
be retained.
The committee adopted the House
policy of defining gross income and net
income as to foreign traders and corpo-
rations.
The House bill limited the building
and loan associations, which are ex-
empt from income tax, to those oper-
ated exclusively to make loans to mem
pers: The associations feared the word
Exclusively" might prove too sweep
ing and at their instance the language
was changed so as to make the exemp D.
t,cn apply TO associations substantially
All OF whose business consists of max
ing loans to members.
Changes in Luxury Schedules
The House bill removes Prom the ex-
empt list int rest paid on money bor-
rowed to carry tax exempt bonds of the
Federal government. The Finance Com
mittee approved this, with the provi-
sion that the exemption shall date
from January I, 1929.
=, certain changes were made from the
House bill in the so-called luxury
taxes under Section 900. 1t was agreed
70 impose per cent on the manufac-
1ufers' selling price of the following
articles above the price named:
On carpets in excess of 81 square
yard, on rugs in excess of S6 a square
YARD, on trunks in excess of S35 each
ana vallses suit cases, etc, in excess
OF $40 each, on purses, pocketbooks,
shopping bags and hand bags in excess
o. 20 each, on umbrellas and parasols
sooVe 50, on fans above 81, on porta Bile
,p@ht fixtures, including lamps and
lamp shades, in excess of $40, on the
entire selling value of Office furniture
ahd fft'ngs of mahogany and other i'm
ported woods.
ihe committee reconsidered it's pre-
vious action and decided to recommend
os onss as to all articles under Section
'9o, If the manufacturer is both
wholesaler and retailer, he may COM
pute the taxes on retail sales on the
pas's CT wholesale selling price. This
amounts tc adopting existing law.
No Patent Medicine Levy
The committee reconsidered its ac-
sion IN putting tax on patent medi-
Ilnes and concluded to impose no tax
g1asng from next January 1. The
house bill strikes off the tax also
e@Ing from passage of the bill.
Nh FOUNTAIN syrups, on reconsi 1era-
sson' the committee reduced the figure
from l0 TO ia cents a gallon.
Inc cOrnr1itfao aUread to +L. uo,1.
provision enabling the Commissioner
~ internal Revenue to settle definitely
saN cases, and also to the House pro-
vision regarding new regulations to
soppiant old regulations but not to be
attractive
:, Inc House plan OF a tax simplifca-
aon board and various technical pro-
''S.ons of the measure were agreed to.
representing that under the tax bill
a. II has been shaped before the Fi.
nance Committee S2,0o0,00o, 900 of ex-
ssess've taxes will be saddled on the
farmers and workingmen of the coun-
ny, delegation of officials of farm
sald labor organizations called on Sem
SSor fenrose, chairman of the Finance
Esommittee. this afternoon and asked
10, roF several days hearings. Senator
aenrose declined to grant the request
~ the ground that no further hearings
- any character can be permitted.
Heavy Inheritance Tax Urged
hcnjamin c. Marsh, executive Sec
IIsssry OF the Peoples Reconstruction
ses and managing director of the
ss'sln'ers' =. National Council. headed the
sse,isga ~, tion. Mr.. Marsh some time ago
= tAIea Of mandamusing tbs committee
Grant hearings, but admitted to-day
was impraeticabie. Among the