Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-09-22
stock tax. beginning in 1922, new

STOCK IaA, Dc6lHAi48 AZ Ae--' nv"
provision
Reduction of the freight and pas
senger taxes from 3 and per cent.
TO / 1-2 and per cent, respective
ly, effective next January l, with
their repeal on January 1. 1928.
The House proposed repeal of all
transportation taxes as of next
January l.
An increase of $500 in the. exemp-
ton allowed to heads OF families
having net incomes of $4,000 or less,
a House provision.
An increase from 5000, to $500, IN
the exemptions allowed on account
Of dependents. also a House pro-
pesa].
The finance committee concurred
in the House action in repeating the
so-called nuisance and luxury taxes
collected direct from the consumer
and substituting manufacturers
taxes.
These and other minor changes
in the bill previously have been pub
lished.
An important change in the House
bill not heretofore made public
deals with taxes on capital net
gains. The Senate committee
measure provides that if any tax
payer derives capital net gain in
any taxable year, such capital net
gain shall be stated separately from
the ordinary net income in the tax
payers return: and only 40 per cent.
Of such capital net gain shall be
taken into account in determining
the amount of the net income upon
which taxes are imposed by Sections
20. I'll and go OF this title (the
normal income. sur-tax and cor
poration tax sections). In any such
case the tax shall be collected and
paid upon the sum of tho amount
of ordinary net income plus 40 per
cent of the amount of the capital
net gain"
The House bill provided that in the
case Of any tax payer, other than a
corporation whose ordinary net in
comes and capital net gain together
exceeded $4,000. the total tax i'm
posed should he the amount of the
tax on the ordinary net income
plus - IL per centum of the scapi-
tai net gain or minus 12 1-2 per
centum of the capital net loss, as the
case may be. hut in no case where
a taxpayer derives a capital net
gain shall the total tax he less than
II IL per centum of the total net
income"
change in the present law agreed
upon by the finance committee pro-
Nides that in the case of a bona fide
sale of mifes, oil or gas wells. or
any interest therein, where tn,
principal valne of the property has
been demonstrated through work
done by the tax payer, the portion
of the tax imposed by the income
sur-taX section of the law. "attri-
hutable to such sale shall not exceed
after this calendar wear 1s per
centum of the selling price of such
property or interest" The rate un-
der the present law is 20 per cent.
and IL is continued for this calendar
year.
Republican leaders have not yet
determined when the tax bill, will
be taken up for debate, but Senator
Fenrose said today il probably
would not come up before Monday,
as ii was desired 70 give members
OF tn" Senate ample opportunity to
discuss it. He added that there was
a growing disposition to consider
this measure and the treaty with
Germany alternately. with the tax
bill debated during the day and the
treaty taken up at night sessions.
When Senator Penrose offered the
olll, Senator Underwood of Ala
hama. the Democratic leader, OBJ
tanned unanimous consent for filing
Of the minority report within seven
DAYS. Senator LaFol!ette OF Wis
consin. Republican member OF the
hnance committee. also obtained
consent to file dissenting views
views within that time should he de-
eide IN Ho go