The Birmingham age-herald., 1921-09-14
TAXES ID STAND FOR YEAR,
 SENATE DECISION
Penrose Committee Rejects Suggestions of Treasury Secretary-ExpeCt 0th-
 CT Changes Soon
By Associated Press

Washington, September 1S.--Cor- porations would be required to pay excess profits taxes for another year under a decision. today of the Senate finance committee. which finally ap- proved the provision in the House bill repeating these taxes as of next Jan uary l. instead of last January l, as recommended by Secretary Mellon
 The committee also inserted d pro vision in the House measure rcpeal- ing the capital stock tax effective next year and adopted an amendment Increasing the corporation income tax from 10 to l5 per cent. instead of 1z1s per cent, effective January 1, 1922
 These represented the major de- cisions reached today at two sessions although it was said officially that the committee practically decided to amend the House bill so as to con tinue the tax on express packages and oil transported by pipe line. Whether any part of the taxes on the tra ss- portation of freight and passengers will be retained after January 1 will depend. Chairman Penrose said, upon a report to be made tomorrow by the treasury as to the sssavings in ex- penditures expected to be made this fiscal year by the various government departments.
 Savings Report Called For
 This report was called for today by the committee which was repre- sentd as taking the position that it could not complete the levy sections or the bill until it had more detailed information as to how the depart ments expected to accomplish the sS5O,000,000 cut in outgo agreed upon at the White House tax conference last month
 With this information in hand, Chairman Psnrose said, the commit. tee could probably get through with all the levy sections, of the bill to. morrow Rapid progress was made today, the committee completing con- sideration of number of administra- tive as well a.s levy sections.
 Provisions in the House bill stricken out today included those ex- emptinS from the income tax the sal aries of the President and the judges or federal courts; the first $500 of in come from investments in building and loan associations and contribu- tions made by corporations for char. itable purposes. The committee also disagreed to the House provision a1- lowing travelling salesmeu to deduct from their income all expenses in. SuitSu WHlle on the road.
 Increase Taxpayers
 A new section added to the House bill would require individuals having a gross income of s5.oO0 annually to make return irrespective Of whether the total amount of net in- come was taxable. Chairman Pen rose said the treasury expected to collect income tax from many per sons not now making returns through this provision.
 Another provision added by the committee would permit banks to de- duct for purposes of federal taxation the amount of taxes paid to states on the shares of stockholders.
 The committee agreed to sections Of the House exempting from tax in- terest on bank deposits Of foreigners engaged in business in this country. but not having regular places Of business and eaempting fraternal beneficiary societies rom federal tsxation. It also agreed to the House provision permitting corpora tions after January 1 to make con solidated returns for subsidiary companies or an individual return for each subsidiary.
 Discussing the action of the com nittee on the levy sections, Chairman PenroSe said in hiS opinion no new taxes would have to be imposed, and that sufficient funds would be raised by the levies already agreed upon The thought of the, committee. he added, was to repeal the taxes on the transportation of freight and pas- sengers, with the levies on oil by pipe line and express packages re tained because there was no partic- ular demand for their repeal.
 Under the bill as amended today by the committee, corporation would pay s60.000,000 less in taxes in the calendar year 1922 than they would under the present law, but it was ex- plained that most of this loss in gov ernment revenue would be made up by committee changes already agreed upon or anticipated.
 The reduction in corporation taxes for next year would be accounted for by repeal of the capital stock tax.S In the calendar year 1928. however, corporations would pay $242.500,00v less than under the present law, ac- cording to treasury estimates. This would be brought about through re- peal of the profits tax, which would cut government revenues $450.000. 900 a year As an offset to this cor porations, it was explained, would pay an additional per cent incoI-e tax. estimated at s267,500.000.
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