The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-11-09
SPLIT ON SURTAX
WIDENS IN HOUSE
Senate's Rate of so Per
Cent Acts as Wedge
for Republicans
MAY AGREE NEAR '4O'
Some Predict Bill Will Be in
Presidents Hands Soon;
Many Fear Long Delay

v,AgrUNGTON. Nov. S.-The
hrc..f in the ranks OF house re-
nyhI.aans over the acceptance Of the
sorat. maximum income surtaN rate
Of su per cent continued today to
widen
Ogbt 4t least until after the rewrit-
irr OF 'hp bill by the Conferees gets
under way, but whether negotia-
lions 10 that end which were opened
,yifb the insurgents" would be sue
.essfuI. remained TO be decided.
Would Force Conference.
II the negotiations started today
terminate without an agreement, the
majority leaders plan TO bring in
rule 90 force the bill to conference
without instructions to the managers.
In that event the republican "insurg-
ents" and the democrats are pre-
pared to make a fight on the rule.
LOSING iu that, they say they still
will De In "A position TO renew the
fight when the house managers ask
for Instructions.
House leaders are understood to
he ready 10 accept a compromise on
the surtaN rate at an increase OF ap-
pr0Nmately s per cent over the 81
per cent maximum fixed in the bill
as it passed the house. Majority
leaders in the senate also look for
ward 80 A compromise at around 40
per cont
Chairman penrose OF tho senate
finance committee said today he ex-
pectcd the bill to be ready for the
president next week. Other scna-
tors and some house leaders were
less optimistic. Estimates as to the
time OF congressional action ranged
all the way from ten days to three
weeks.
Treasury experts completed today
their estimates as TO the revenue
which would be yielded by the SEN
ate bill The total for this fiscal
year was placed at s3,2i2.730 900 as
compared with $3,45O, 1000 under
existing law; that for the next fiscal
year at S2,7172SO,00O and that for
the calendar year 1928 at s2,726,-
2SO.OOO.
A statement prepared by the ex.
perts and made public by Senator
PcnrOso said that the technical and
administrative improvements in tho
bin We're quite as important as the
reductions in specific taxes"
Tho improvements in question
work In both directions" the state
Z mont said. They close holes
through which taxes fairly due have
hitherto escaped; and they provide
cushions to protect the taxpayers in
situations whore profit is not really
made but only appears to be made.
Avoidance Of the tax through the
device OF gifts viii be greatly re-
duced
Necessary business readjustments
or reorganizations which are now
blocked by the excessive taxation Of
purely paper gains can be carried
through without premature collec-
ton Of the tax. Farmers, miners
and others who realize capital gains,
which In large majority OF cases
have been accruing through pc
Rod Of years, will be permitted to
close their deals and take their prof
!, us, Without fear of "A tax unfairly
made prohibitiye by taxing as a lump
sum- In one year, profits which have
been earned over "A series Of years.
The compulsory conversion Of
property into cash through fire,
shlpwreck and the like, will no
longer be held to result i'm taxable
gain when the taxpayer in geod
faith invests the proceeds OF the con-
version In similar property and goes
"h CohuuCllng business, as II were,
at the old stand.
American citizens and domestic
corporations engaged in business in
American possessions will escape
double taxation and be able to meet
iorelgn competition on equal terms.
The important amortization de-
uucuon has been limited to claims
made IN returns for the years 1918
and 1919 in connection with war
plant and facilities.
The law relating 70 refunds,
credits and suits for taxes has been
put upon a fairer basis. In gem
eral the taxpayer will have four
years IN which to make claim for
refund and five years in which TO
9rlhs suits for taxes. The treasury
department, similarly, will hereaf-
yer nave only four years In which TO
mango assessments and five years in
MnIrNh a Lrfys-