South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-09-14
TO RETAIN EXCESS
PROFIT TAX UNTIL
1922, SENATEPLAN
Finance Committee Makes I'M
portant Changes in House
Tax Measure.

WASHINGTON. Sept 18.-Corpo-
rations would be required TO pay ex-
cess profits taxes for another year
under a decision Tuesday of the SEN
ate finance committee, which finally
approved the provision in the house
bill repeating these taxes as Of next
Jan. 1, instead OF last Jan. ] as rec
commended by Sec'y Mellon.
The committee also inserted a pro-
vision in the house measure repeal
ing the capital stock tax effective
next year and adopted an amend
ment increasing the corporation in
come taxes from 12l5 to is per cent
instead of 121z per cent effective
Jan. l.
These represented the major de-
Cisions reached Tuesday "a two ses-
sions. although it was said officially
that the committee practically had
decided TO amend the house bill so
as TO continue the tax on express
packages and oil transported 10y pipe
line.
" AGN4AtA dAN lItll A4OlA O4 Al4G taxes
on the transportation Of freight and
passengers viii be retained after next
Jan. l viii depend, Chairman Pen
rose said, upon a report 10 be made
Wednesday by the treasury as 20 the
savings in the expenditures expected
10 be made this fiscal year by the
various government departments.
Change Income Provisions.
This report was called for Tues
day by the committee, which was
represented as taking the position
that it could not complete the levy
sections of the bill until IL had more
detailed informa ton as TO how the
departments expected TO accomplish
the $50, 600 cut in outgo agreed
upon at the white house tax confer
ence last month.
Provisions in the house bin strick
en- out included those eXempting
from the income tax the salaries Of
the president and the judges OF fed
eral courts; the first $500 of income
from investments on building and
loan associations and contributions
made by corporations for charitable
purposes. The committee also dis
agreed to the house provision al
/ lowing travelling statesmen 20 deduct
| from their income all expenses In
CURED while on the road.
$4,000 Incomes Taxed.
A new section added 10 the house
bill would require individuals hav-
ing a gross income Of $1,000 annual
" 10 make a return. irrespe ctive Of
whether the total amount OF net IN
come was taxable. Chairman Pen
rose said the treasury expected 20
collect income tax from many per
sons not now making returns
through this provision.
Another provision added by the
committee would permit banks 20
deduct for purposes Of federal tax
alton the amount Of taxes paid 20
states on the shares Of stockholders
The committee agreed 70 sections
OF the house bll exemptng from tax
interest on bank deposits Of foreign
! ers engaged in business in this coun-
try. but not having regular places Of
business and exempting fraternal
DtUtllE4dL1 SDtAtAANn Al DAlA NAt'-. GA
taxation.
It also agreed TO the house provi-
sion permitting CORPORATIONS after
next Jan. 1 to make consolidated re-
turns for subsidiary companies or an
individual return for each subsid-
larry.
Propose No New Taxes.
Discussing the action Of the COM
mittee on the levy sections Chair
man Penrose said in his opinion no
new taxes would have 10 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
I