New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-16
House Gets Tax
Bill; Excess
Levy Ends JAM

! (cSntInued from page cae)
sections already referred to. the hill
proposes repeal Of all of the trans
portation taxes effective next January
l, increased exemptions to heads of
families and married men having in.
comes of less than $4,000, decreases in
the levies on candy sporting goods.
furs and art and art works. the sub
stitution of manufacturers taxes for
the so-called nuisance and luxury levies
and other minor changes.
Additional revisions include exemp
tion from taxation of the salaries of
the President of the United States and
the Judges of the Supreme and inferior
Federal courts and also amounts re-
ceived by individuals as compensa-
ton, family alsotments and allowances
under provisions of the war risk in
surance and vocational rehabilitation
acts.
A change also is made in life insur-
ance company taxation, the bill re-
curing them to pay the normal corpo-
ration tax in lieu of the levies on
policies when written and all other
present taxes except the corporation
stock tax and certain stamp taxes. For
pay on the net income from sources
within the United States.
Relief for u. S. Concerns Abroad
Another section of the new bin out
lines general plan to tax American
concerns doing practically all of their
business in foreign countries only on
the income received from American
sources. They now are taxed on their
inn .oE = :.
places them at a disadvantage with
competing foreign houses.
Personal service corporations, freed
by the Supreme Court from corporation
taxes, would be brought specifically un-
der the corporation income tax by the
bill and provision is made that if the
partnership tax of the 1918 act on in
dividual stockholders of such corpora
tlons should be declared invalid, "there
SHALL in addition to all other taxes, be
levied, collected and paid on the net
income received during the calendar
years 1918, 1919 and 1920, by every
personal service corporations" a tax
equal to the taxes imposed under the
excess profits and income surtax provi-
slons OF the present law.
Exemption from taxation would be
granted to farmers cooperative pur
chasing organizations, as we'll as to
selling organizations where the ma
terials purchased are turned over to
members of the organizations Eat ac-
tual cost plus necessary expenses"
Distilled spirits diverted to beverage
purposes or in the manufacture Of any
would be taxed at the rate of $42O a
gallon, the tax to be paid by the per.
sons responsible for such diversion.
Under an amendment to the estate
tax sections of the present law amounts
receivable as insurance upon the life
of a nonresident decedent, and anv
moneys deposited in any bank, banking
institution or trust company in the
United States, by or for nonresident
decedent who was not engaged in bust
ness in the United States at the time
of his death, would be exempt from
taxation.
Other revisions provide that nc
amusement tax shall be levied on adj
missions all the proceeds of which
inure exclusively to the benefit of per-
sons in the military and naval service
or to persons who have served in such
forces and are in need; that the jew
eler's tax of 5 per cent on eyeglasses
and spectacles and the manufacturers
fans shall be repealed, and that tax
of 10 per cent shall be imposed on
lenses for cameras weighing not more
than 100 pounds.
Some of the new administrative feat
ures of the bill are designed to speed
up settlement of claims involving back
taxes, estimated to amount to $780,
coo. The time for determination and
final assessment of any tax due under
the new bill would be three years
after the return was filed, instead of
five as at present, and the amount of
tax due under any return made under
prior tax acts would have to be deter
mined and assessed within five years
after the return was made, unless the
Commissioner of Internal Revenue and
taxpayer consented in writing to later
time
Provision also is made that no suit
or proceedings for collection of taxes
shall be begun after the expiration of
five years after the date the return is
filed. The bill also declares that after
determination and assessment in any
case the taxpayer has without protest
paid in whole or part of any tax, and
an agreement is made in writing be-
tween the taxpayer and the commits
sioner, with the approval of the Secre-
tary. of the Treasury, the case shall
not be reopened and mo suit or action
to change such determination or as