Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-11-19
His Attitude Reflected
in Many Other Ad-
mlnistration Circles
House on Friday Knocks Out
Senate's Increased Maximum
Inheritance Tax-Accepts
Many Senate Amendments
Final Action Looks Some
Time Away

| washington, Nov. 1S-The senate
amendment, proposing to increase the
maximum Inheritance tax rate from
the persent 25 per cent. on estates
valued at s10,OOo,O0O or more to 80
per cent on those Of 100000, 900 or
more was knocked out of the tax re-
vision bill today by house and senate
conferees. This amendment formed a
part of the compromise revision pro-
gram brought forward by the senate
agricultural bloc and agreed to by
Republican leaders.
This was the only one of the re-
naming high spots" in the bill on
which the .conferees came to an agree
ment today, but the house managers.
in conformity with the instructions,
voted yesterday, but the house &C
! cepted the senate, income surtax max
imum rate of So per cent. At the
White House today, it was said. that
President Harding was frankly dis
appointed by the house action on the
surtax amendment and this dsap-
pointment was reflected in other adj
ministration and in some congress
sional circles.
The house managers accepted today
the senate plan of taxing insurance
conn anies. This plan provides that
life insurance companies shall pay an
income tax on their investment in
come at the rate yet to be fixed for
corporations. Mutual insurance com
panies other than life will be taxed
at the same rate on their net income
as computed under existing law. All
other insurance companies will paw
the corporation tax rate on their net
income as shown in statements re-
CURED to be furnished on standard
:tate forms to state tax commissions.
Other agreements reached by the
cpnferees included these:
Struck out the La Toilette amend
ment requiring tax payers in making
their returns to list the tax free Sc
curities held by them.
Adopted a compromise amendment
cXempting from taxation the first $500
Of income received by individuals
from investments in building and loan
associations. the exemption to run for
five years from next January /.
Accepted the senate amendment
striking out an original house pro-
vision allowing corporations to deduct
| from Their income gifts to charitable
organizations. provided the total did
not exceed five per cent. of the net
income of the Contributing corpora
ton.
Accepted senate amendments pro-
viding that whore banks and corpor-
atoms pay taxes for their stockhold-
ers. they may deduct the amount so
paid in making their income tax re-
, turns. The stockholders for whom
taxes We're so paid would not he per-
mitted, however. TO make 4 similar
deduction in making their returns.
Accepted a senate amendment ex-
value Of dwellings furnished to a
minister of the gospel, as part of his
compensation.
Accepted a senate amendment ey-
empting receipts by individuals from
ship owners mutual protection and
indemnity associations not organized
for profit.
Senator Penrose said the conferees
expected to finish up their work to-
morrow. Final action on the report
might be taken in the senate and
house by Wednesday evening. Penrose
! said, but he added that this now
looked doubtful.