The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-08-07
TURNDOWNR REPEAL
Of EXEMPTION ON
CORPORAT|ONTA TAX
Ways and Means Members to
Avoid Hardship on Small
Business Mon.

Repeal of the $4,000 exemption al
lowed corporations on their net IN
comes, which was recommended as
part Of the Treasury Departments tax
program, will not be adopted py the
Ways and Means Committee, Chair
man Fordney indicates.
The committee has been flooded
with protests from small business con-
Germs who declare that the repeal or
The exemption would be ruinous to
them. Mr.. Fordney says.
The committee has decided that 1t
would steer clear OF any provision In
the new bill that might work hard
ship upon the small business man. III
the final estimates Of revenues under
taxes TO be continued and readjusted
show that the exemption need not be
repealed to provide the $4,000, 900, 900
the committee aims to raise, the ex-
emption will not be repealed.
Mr.. Fordney said that he fully ex-
pected that there will be no necessity
for the repeal. II 1t is repealed. how
ever, some other way to protect the
small corporations will be found. Mr..
Fordney said.
Personal Service Firms.
Incomes Of personal service corpora
lions will be brought under the cor
poration tax provisions of the bill, the
chairman said. Special legislation de-
signed to make the taxing of incomes
of personal service corporations attack
proof in the courts will be written into
the bill. he said.
The committee worked yesterday on
administrative features of the tax re-
vision measure. 1t was announced
that changes had been made in many
of these provisions so as to simplify
and clarity them. Beginning Monday
the committee will get down to work
on the tax schedules.
1T looks as IL we might be through
with our work and report the bill to
the House in ten days." said Mr..
Fordney. THAT Is, of course, IL we
strike no snags, and / do not see any
now"
Democrats Excluded.
The Republican members Of the
committee are drafting the bill, Dem
ocratic members being excluded from
the committee meetings.
The first Of the week the committee
Will ueClut WneH t1e pIopOStu lepcdi
of some of the existing taxes will be-
come effective. These include SO per
cent of the freight and passenger
transportation taxes, the excess profits
tax, the higher brackets of income sur
taxes, and the soda AMI ice cream tax.
The Ways and Means Committee is
ignoring many of the recommendations
made by Secretary Of the Treasury
Mellon in writing the new tax bill.
Increase in the rate Of first-class
postage and a tax of cents on bank
checks are among the recommends
tons which committee members say
they are so strongly opposed to that
they are not being considered.
The Ways and Means Committee
now has before 1t the statement OF the
House Appropriations Committee Civ
ing the committees estimate of how
much money will be needed to run the
government during the present and
next fiscal years.
Under the budget system, the ap'
preparations committee estimates, not
more than $4,000 100000 will be re.
uuired, as compared with 81 $50, 900 900
estimated by Secretary Mellon. House
leaders have accepted the appropria'
lions committees figures, and are
counting upon reducing the Treasury s
recommendations by approximately
$500. 000. 900.