Evening star., 1921-08-17
HOUSE CONSIDERS
TAX BILL REVISION
Adopts Rule, 223 to It's, to
Limit Debate and Vote
Saturday, 3 Pm.

Consideration of the republican tax
revision bill was begun in the House
today. Immediately after the House
met. rule specifying the course
which the bill shall follow was laid
before the House. 1t provides for gen.
eral debate until tomorrow night,
consideration of the bill under tie
five-minute rule for amendments, and
thereafter. and vote on the bill at
pm. Saturday.
The rule was adopted by a vote of
223 to lis. The formal reading Of the
bill was then begun.
Democrats meeting in caucus yes
terday afternoon. 1astanight and this
morning failed to reach an agreement
republican tax. bill They af56urned
to meet at o'clock tonight t6 attempt
to adjust their differences. 1t was
understood that the. chief difference
of opinion was as to whether the res
olution stating the acknowledgement
contain specific suggestion as to
sources from which revenue should
be raised.
Mr. Kitchin Protests.
Representative Kitchin, Ranking
democrat on the ways and-means
committee, who is detained -at his
home in Scotland Neck. N. c.. by
illness. sent a telegram to the caucus,
urging solid democratic opposition to
the republican measure. He has been
kept fully informed as to the pro-
visions of the bill and events during
its preparation and expects I'd re-
view 1t In a message to be sent to
the democrats today.
ways and means committee demo-
Gratis in preparing their minority re-
port. which they have until Friday
to file, will make use. 1t is under.
stood, OF especially prepared tables
showing comparative taxes under the
present law and the republican meas
ure. They will undertake to show
that individuals having incomes rang
ing from $4,000 to ss6.ooO year will
pay the same taxes as at present.
whereas those having incomes ex-
ceeding $66.000 will get reductions
ranging from l per cent to SO per cent.
claim. it is said, that corporations
having net profits of from to 10
per cent will pay as much or more
under the proposed 12h per cent cor
poration tax as they do under the
excess profits and 10 per cent cor
making Is per cent or more will be
granted reductions on a graduated
scale which will amount in some cases
to as much as IS per cent
Representative Frear of Wisconsin.
iepuUiicdn HeHUer OF the ways ana
means committee, plans to file q sup
Elemental majority report, suggest
ing taxation of the undivided profits
of corporations and other sources Of
wealth as recommended to Congress
last year by Secretary Houston.
Average Family Cut. S35.
Chairman Fordney Of the ways and
means COMMITTEES has reckoned that
the the 9;a red9Stlons , in taxes proposed by
for the entire population, or about
$35 for the average family when the
changes become fully operative in
man on sections of the new bill de-
signed to prevent tax evasion He
informed the House that under ex-
listing law the taxpayer might i'm
properly reduce his surtaxes by
ting his annual income in two parts
To prevent such an evasion, he added,
the bill provides that in the case of
a return for period of less than
one year the net income shall be
surtax properly computed thereon in
accordance with the number OF
months in such period.
To prevent evasion Of tax through
the medium of wash sales," Mr.
Fordney said section had been put
in the bill to limit deductions for
losses by providing that no deduction
should be allowed for losses sustained
in the sale Of securities where the
taxpayer at or about the time Of such
sale purchased identical securities.
Meet Courts Decision.
The provision Of the present law
dealing with surtax evasion by cor
poration organization, the report
said, was revised to meet the de-
cision of the Supreme Court in the
stock dividend case. There would
be imposed on corporations OF this
character fiat additional income
tax of Is per cent of the net income,
but if the stockholders agree they
might be taxed upon their distribu-
tive shares in the net income Of the
corporation in the same manner as
members of q partnership. such taxes
to be in lieu Of all income taxes upon
the corporation.
Mr.. Tordney said some mortgage
and Investment companies had been
obtaining exemptions allowed by law
to building and loan associations by
operating under the guise Of such
associations. To prevent such eva
sion of tax. the chairman explained.
the exemption had been limited in
the new bill to domestic building
and loan associations operated ex-
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