Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-20
COMMITTEE FAILS
To REACH DECISION
ON TAX PROPOSALS

WASHINGTON, Sept. 10. The
senate finance committee failed Sat
urday to reach final decision in the
! Smoot tax simplitication BILL en-
bodying a manufacturers safes levy,
and on Senator Calder's proposal to
impose tax of $40 a gallon on
an alcoholic liquors withdrawn from
bond for other than manufacturing
purposes The committee VIII meet
again Monday.
Senator Shoots bill was said to
have been faVorably received by sew
eral senators who were represented
as desiring a less complicated tax
result from enactment of the amend
ed house bill The consensus of opin-
ion still seemed to be, however. thac
the committee would reject the Smoot
measure.
Reiterating that he would offer Che
bill in the senate, the Utah senator
said:
1--WE will see what will happen
there. The American Automobile as
ISOLATION came out today in favor of
the manufacturers tax proposal, an
official statement from the associa-
ton headquarters declaring that
such a tax would give to the bust
ness men of the country just what
| they themselves feel is needed to set
in motion the wheels of industry,
that will give employment to more
than five million now idle men,"
Senator Cadlers whisky amend
ment was discussed by the commit
| tee today, and according to the
! author and other members was &C
| ceptcd in principle. The senator
said he had been asked to redraft
| the amendment and present 1t again
on Monday as it was feared that as
| originally worded it might be con-
/ strued to tax industrial alcohol.
| Proposed Beer Tax
The proposed amendment goes fur
Their than the house provision viii, h
would tax at the $6.40 rate, only
alcoholic liquors diverted to bever-
age purposes. Senator Calder would
tax liquors withdrawn for medicinal
| purposes as well.
The Calder proposal to tax 2.75
per cent beer was said to have been
| less favorably received as some COM
mitteemen were of the opinion that
| hibition amendment to the constitu-
ton. The Smoot and Calder pro-
pCSals were taken up after the COM
mittee finally had completed it's re-
| vision of the house bill. Last min
| ute charges included a new proVi-
sion requiring hotels to pay tax OF
ten per cent on the amount in excess
of SIS charged to transients for sin
| gle rooms and on the amount in eX-
cess of SO charged for double rooms
| The committee approved the house
| provision granting the treasury au-
| thority to issue $700,000,000 in short
| term securities insteid of $1,000.
100000 and rejected the plan origi-
mating with the house ways and
means committee to create a tax in
| Vestigative commission to study and
report on possible means of taxing
! the income from taX-eXempt state
! municipal securities. A new pro.
posal adopted would require the gov
| ernment to pay interest at the rate of
| one-half of one per cent taxes er-
| roneously paid and refunded to the
! tax payers.
Aside from these changes in the
/ 1913 revenue act, the committee
agreed to half a hundred others
many of which were incorporated in
the house bill. An official state
ment issued at Chairman Penrose' s
office described forty-one of the more
| important alterations proposed in the
| existing law. TWenty-siX of these
| had to do with the excess profits
| income SurtaX rates, corporation in
come, transportation and other levy
! sections and were described in de-
tail in Associated Press dispatches
last night.
The committee statement showed
that it had been agreed to accept the
| house provision repeating the policy
| taxes on life insurance and the pre-
MUM taxes of other insurance COM
panies on next January l, and to i'm
pose ID per cent tax upon the in
vestment income of life insurance
companies from last January l. The
present policy of income taxation in
the case of insurance other than life
| would be continued ~
In considering administrative Sec
tons of the house bill, the commit
tee restored the provisions of the
present laws permitting manufacture
ers to subject to taxes under Section
900 and doing both wholesale and
! retail business to compute the tax
upon retail sales upon the basis Of
their wholesale selling prices.
Accepted the provision authoriz-
ing the commissioner OF internal rev.
enue, with the approval of the sec
rotary of the treasury and the con-
sent of the taxpayer to make final
| settlement of tax cases.
Adopted the provision that if the
personal service corporation prOViS-
ions of the 1918 law are held uncon-
stitutional such corporations shall
| pay the tax imposed upon other cor
porationS under the 1918 act unless
they elect to pay taxes under the
personal service corporation pro-
| vision of such act.
| treating personal service corpora
| lions as other corporations on and
| after next January 1.
Adopted the house provision per-
hitting the deduction of a net loss
| resulting after December 81. 1920, in
any taxable year, from the net in
come of the taxpayer for the sue
ceeding taxable year, and if the net
loss is in excess of the net income
for such succeeding taxable year, the
amount of the excess in the next
succeeding taxable year.
Approved the house provision au-
thorizing the commissioner of in.
ternal revenue, with the approval OF
| the secretary to make regulations re-
| Versing prior regulations without
making subsequent regulations retro
active.
Accepted the house provision au-
thorizing the establishment of tan
simplifcation board to investigate
the procedure of and the forms used
by the bureau of internal revenue
and to make recommendations for
| the simplification thereof.
Accepted the house proposal al
lowing the deduction in computing
net incomes of an individual OF
! amounts expended for meals ano
lodging by travelling men and other
persons, while away from home in
the pursuit of trade or business.
Limited the deductions of individ-
uals for gifts to charitable and edu-
cationa1 institutions, in computing
house provision granting a similar
deduction to partnerships and cor
porations.