The Birmingham age-herald., 1921-09-22
SENATE GETS TAX
 BILL AMENDED BY
 PENROSE'S BOARD
Majority Report to Be Sub mitted Later-FeW Changes Are Made In the
 Original Measure
By Associated Press

WaShl nEton, September 2l.-Th House tax revision bill wa presented formally today to the Sen ate by Chairman Penrose of tn finance committee. who gave notic that he would submit the majorit. report tomorrow and urge at tha time that the measure be considere' as soon as other business of the Sen ate would permit
 Designed to raise approximate
 dollars in revenue this fiscal
 year, the amended measure pro-
 vides fori
 Repeal of the excess profits
 tnx on January 1. 1922, as pro-
 posed by the House.
 Reduction of the maximum Iu- come surtaS rate from 85 per
 cent to 32 per cent, effective
 next January 1. es provided in
 the House bill, but with changes
 made in the lower brackets so
 ss to reduce the amount of sur
 taxes paid by all individuals.
 An increase of per cent to
 
 poration income tax, effective
 January 1. 1922. in lieu of the 2h
 per cent advance agreed upon
 by the House.
 Repeal of the corporation cap
 itaI stock tax, beginning in 1922,
 a new provision.
 Reduction of the freight and
 passenger taxes from 8 to s per
 cent to IA and per cent, re-
 spectively, effective next Janu-
 ary 1, with their repeal on Janu-
 ary 1, 1923. The House proposed
 repeal of all transportation taxes. as of next January 1.
 An increase of $500 in the ex-
 emption allowed to heads of
 families having net incomes of
 $5,O00 or less, House provision.
 An increase from x20O to S400 In the exemptions allowed on
 accounts of dependents. also
 House provision.
 Agrees With House
 The finance committee concurre' in the House action in repeating tn so called nuisance and luxury taxes collected direct from the consume a d substituting manufactures taxes. These and other nino  been published
 An important change in the Hous' bill not heretofore made public deali with taxes on capital net gain. Th' Senate committee measure provide that if any taxpayer derives capita net gain in any taxable year "sucl capital net gain shall be stated sep arately from the ordinary net incom' in the taxpayers return, and onl. 40 per centum of such capital ne gain shall be taken into account Il the amount of the ne income upon which taxes are imposed by sections 210, 211 and 2S0 of thi title (the normal income, surtax an' tax sections). In an. such case the tax shall be collecte' and paid upon the sum of the amour of ordinary net income plus 70 pc centum of the amount of the capita net gain"
 Names Tax Rate.
 The House bill provides that in tn ease of any taxpayer, other than whose ordinary net Tn come and capital net gain togetne exceeded $29,000, the total tax i'm posed should be the amount or tn tax on the ordinary net income piu 121s per centum of the capital ne gain or minus 121a per centum or th capital net loss, as the case may pc but no case where a taxpayer derive capital net gain shall the total ta be less than 12la per centum or .h total net income
 A change in the present law agree upon by the finance con.mittee pro vldes that in the case of bona tid sale of mines, oil or gas wells, any interest therein, where the prlh cipal value of the property mas peel demonstrated by prospecting or eA ploration and discovery work done D. the taxpayer, the part Of the ta imposed by the income surtax sectio of the law attributable to such sal shall not exceed after this calenoa year 16 per centum of the selnnl price of such property or interest .' The rate under the present law IS per cent and it is continued for Uni calendar year. Al.
 When Senator Penrose onered tii bill, Senator Underwood, Alabams democratic leader. obtained unan' nous consent for the filing of tn minority report within ten days. sen ator LaFoIlette, Wisconsin. a repup lican member of the finance comm tee. also obtained consent to iile uis senting views within, that tune shoui <1 n