Evening star., 1921-11-08
TAX REVISION BILL
UP To- CONFEREES
Senate Passes Amended
Measure, Which Now Faces
Its Third Rewriting.


Il The tax revision bill now faces its
Il third rewriting. this time by the
i House and Senate. conferees.
Il The measure finally was passed
|. early today by the Senate, 80 to "a
Il at the end Of continuous session
!. lasting nearly sixteen hours.
+: Three. republicans-La Toilette:
I1Ioses and Norris-voted against the
! bill., and one democrat, Bronssard.
supported it.
1t will be returned to the House
when that body reconvenes tomorrow
and republican leaders there plan to
Emay reach the President for his ap-
;proval late in the month.
; Senate conferees on the bill were
framed as follows: Penrose, McCum-
!ber and Smoot, republicans: Simmons
land Williams. democrats.
Estimate OF Probable Revenue.
+; At rough estimate Treasury eX-
:perts say the bill in its present form
would net approximately s5.eao,oco.-
,0e6, or 5000. 900, 600 less than the pres
;ent law and about the amount or
revenue which Treasury officers have
said the government must have.
Eventually the bill, the experts as
-sert, would reduce the nations tax
foil by about $75O,000.000 a year.
& While they undoubtedly will make
4 many changes in the measure, the
i. conferees are not expected to ma
/ AS the bill now stands there are just
three major provisions on which the
House and Senate agree. They are
N.repeal of the excess profits tax and
Il the transportation taxes on next jan
H:uary 1 and the retention of the pres
Mont fa affon nifQ1 afnck
l. surtax Bone of Contention.
Il The big fight between the Senate
land House is expected to develop over.
II the income surtax rate, with the gen.
t: :eral belief at both ends of the Capt.
Vtol that the conferees will reach
!! !compromise at figure around 40 per
ilcent. House republican leaders be-
i1ieve they can scotch the movement
jamong some republicans from west
Ii ern states to have the House instruct
Hits managers to accept the Senate
Nmaximum rate
i In the final drive in the Senate last
might to pass the bill many amend
| ments were offered, but few of them
| were accepted. The most important
| of those approved was that taxing
!, to prevent evasion Of the surtax by
| wealthy individuals by a distribution
| of their property among their rela-
J tiveS.
' L ndcT iNOCHeT dHCHOIHeuI gains
; realized by taxpayers from the sale
: of corporation stock would be taxed
on the full amoundt instead of on
! only 40 per cent. as it was claimed
would be the case had the capital
isHsset definition in the bill remained
unchanged.
Adopts Graduated Tax on Gifts.
! The Senate adopted, IS to 81. an
samendment by Senator Walsh, demo-
iscrat, Massachusetts,, providing for a
e graduated tax on transfers of prop
2erty by gift by every person" The
3amount, by which the gifts exceed
ts2o.0O0 and do not exceed $4,000. to
SS5 per cent on the amounts in ex-
scess of S10,oo0.ooo.
I On a tie vote. 80 to 80, the Senate
rejected an amendment by Senator
Kenyon, republican, Iowa, proposing
a tax equivalent to is per cent of the
value Of tax-exempt securities trans
ferred as parts Of estates. provided
4 such securities were issued six
j Previously, by vote of 33 to 25. the
sSenate had rejected an amendment by
sF senator La Toilette, republican. Wis
! consin. which would have imposed the
I on the transfer Of tax-exempt securi-
l ties issued before the passage of the
act.
/; Sales Tax Proposal Defeated.
Senator Smoot. republican. Utah.
brought up the sales tax again last
4 night, proposing his original 3 per
cent manufacturers levy. with 10
Gent maximum income surtax rate
Hnd a capital stock tax. It was re-
Hected without a record vote.
& Reconsidering its former action, the
phases of liberty and victory bonds
}an exemption equal to the interest ON
&noney borrowed to purchase or carry
those bonds The Senate previously
S1ad agreed to allow an exemption
=, Pnly on the difference between the
anterest on the money borrowed and
fhe amount of interest received from
.Hhe bonds
!: On motion of Senator Reed the
$Senate voted. .32 to 81. to strike out
! Ping companies to deduct from their
capital stock tax the amount Of such
tax paid on the stock OF their subsid-
qaries.
! Retains Capital Stock Tax-
! Then on motion Of Senator Pome-
Ia to "a. to make the capital stock
! :tax on all corporations the same as
; lat present-$1 on each $1,000 Of capi-
stal stock In excess OF $4,000.
, 3cess profits tax after this calendar
:; year failed. the Senate rejecting, SO
10 80, an amendment by Senator Reed
J proposing a tax of 20 per cent on net
!, Sprofits Of corporations in excess Of
so per cent of the invested capital.
SThe amendment was supported by
Ssseven republicans. Capper. johnson,
i Kenyon, La Toilette. McNary, Nor
sbeck and Norris.
!: Three Amendments Rejected.
s In rapid succession the Senate re-
Sected three amendments proposing
SShanges In the corporation income
Estax rate of IS per cent previously
iAgreed upon. The first amendment, by
:-6enator Edge, republican. New Jer-
: sey, proposed retention Of the present
10 per cent rate the second, by Sem
J ator Walsh, democrat. Massachusetts,
. was for @ graduated tax of 10 to 20
per cent, and the third. by Senator
tenroot, republican, Wisconsin,. pro-
posed. 10 per cent rate in the case
Of corporations having net profits
Of per cent or Jess.
For a second time and by q vote Of
"a to %, the Senate rejected the La
Toilette amendment proposing to
make tax returns a matter Of pub
DC record. Seven republicans Joined
the democrats in supporting the
sThe bill finally passed at 1875
O'clock this morning. a