Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-08-17

tween these losses and gains. MIR.
Fordney said represented n re-
duction OF s. per capita. "or a saw
ing TO the average family OF S35
per year"
Since the repeal Of the excess
profits tax and the reduction OF sur
tax rates on individual incomes do
not become effective until 1922. MIR.
i'ordncy said. SiO6,25o.0oo OF the
! contemplated loss of revenue would
not be reflected in revenue collcc-
tions prior to the calendar year 1928.
Discussing elimination OF these lcvics
Mr.. Fordncy quoted two former DEM
ocratic Secretaries OF the Treasury
Glass and llouston--as urging their
repeal. MIR. Glass in 1919 and MIR
| Houston in 1870.
Emphasizes Tn, E,n>inn
| Emphasis was laid by the chairman
on sections of the new bill designed
to prevent tax evasion. lie informed
the house that under existing law
the taxpayer Nigh, improperly re-
ducc his surfaces by changing his
fiscal year. thus splitting his annual
income in two PARTS. To prevent
such an evasion. he added. the bill
provides that in the ease Of Il return
Tor Il period OF less than one year
the net Income shall be placed on
an annual basis and the surtaN prop
crly computed thereon in accordance
with the number OF months in such
period.
To prevent evasion OF tax through
the medium OF wash sales" MIR.
Fordncy said a section had been put
in the hill To iimi, deductions for
losses by providing that no dcduc-
ton should he allowed for losses suS-
tanned in the sale OF securities where
the taxpayer ut or about the time
of such sale purchased Identical SCI
curitics.
The provision OF tho present law
dealing with surtaN evasion by cor
poration organization. the report said.
is revised to meet the decision OF the
supreme Court in the stock dividend
case. There would he imnoscd on
additional income tax OF - nor cent
OF the net income. but If the stock
holders agreed they might bc taxed
upon their distributivc shares In the
net income OF the corporation in the
same manner as members OF a part
nership. such taxes 10 he in lien of
all incoac taxes upon the corpora
ton
Exemptions Arc Limited
Mr.. Fordney said some mortgau.
and investment companies had boon
obtaining exemptions allowed By law
10 building and loan associations bv
operating under the guise OF such
associations. To prevent such eva
SION OF tax. the chairman explained.
me exemption had been limited in
me new bill to domestic building
and loan associations operated excIu-
siveiy for the purpose Of making
loans TO members"
The Democratic caucus began in
the late afternoon and after a recess
'as continued tonight. Representa-.
tive kitchin. ranking Democrat on
me Ways and Means Committee. who
- detained at his home in Scotland
Neck. y. G. by illness. sent a tclc-
gram to Che caucus, urging solid
Democratic opposition to the Rcpuh-
lichn measure. He has been kent
iully informed AS TO the provisions
OF the bin and events during its
preparation. and expects TO review
II in message to be sent to the
Democrats tomorrow.
Democrats Oppose PInn.
Ways and Means Committee Demo
Gratis in preparing their minority re-
port. which they have until Friday
l" NE w!ll make use. IL is under
stood. "f especially prepared tables
showing comparative taxes under the
present Law and the Republican meas
nr" They viii undertake. to SHOW
that individuals having incomes
ranging from $4,000 To sG6.ooo :, wear
viii pay the same taxes as at nres-
ent. whereas those having incomes
exceeding $4,000 will got reductions
ranging fros per cent to 30 per
cent.
The Democratic report also will
claim. it is said. that CORPORATIONS
having net profits of from to 10
per cent will pay as much or more
under the proposed 1919 pcr cent
corporation tax AS they do under
thc excess profits. and 10 per cent
or more will he granted reductions
on Il graduated scale. which will
amount in some cases to as much
as 60 per cent.
representative Frcur. Of Wisconsin
Republican member OF the WAYS
ana Means Committee. plans to eIo
"a supplemental majority report. sur-
costing taxation OF the undividnn
pr"hts Of corporations ana o,y,cr
sources "f wealth as recommended
10 Congress last year by Secretary
houston. II is understood thot Mr.
frcar'S purpose j. not only To hri,r
ines" matters To the attention az tho
h"uS". hut also to the Senate FL
name" Committee. which is to talSc
up the bin soon after it's passage by
the House as to have It ready for
the Senate when the proposed recess
Of Congress ends late next month.