Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1921-09-29
new DRAFT OF
TAX MEASURE
Finance Committee Decides to
Recast House Legislation
Into Uniform Work.
ADOPT sMOOT PROPOSAL


Washington. In beginning consider
alton Of the tax bill the senate FL
nance COMMITTEES decided 10 change
the form IL the measure. The bin, as
II win be reported to the senate. viii
consist Of complete revision Of ex
istlng revenue laws. containing both
new sections and those which are left
unchanged. The bin as passed By the
house consisted Of long series Of
amendments 10 the present law. Tire
portions o. the present law which
we're not changed were not printed n
the bill. md consequently IN order to
understand the measure Il was neces-
snry to compare the new sections with
the old law.
This action b. tho senate committee
does not mean that the substance Of
tile house bin viii necessarily be
changed The technical form Of thu
measure can be changed without any
dllilculty.
rs providing for complete revision
~ tho law the senate committee M
proved the method originally adopted
BY treasury experts IN presenting
tentative draft 10 the HnnSe Ways
aud Means ConlDiilteo. NIeulhers Of
The Ways and Means Committee.
however. weee og TIE oplhlon that the
biil would be iess cumbersome and
more readily handled on the Ii0or Of
the hotiSe X Il contained only amend.
naenia 10 Tie existing law TIE house
eemniitee b. deciding not to adopt
The treasury form cut the length Of
tho bill IN two and greatly reduced
me fine reasiirea 10 read the measure
o. ne A0or " The house.
Senator Penrose. chairman III the
finaiice Committee. III announcing the
Hcgion. said That thc purpose WINS 70
place the bill II saeh form is II Gun be
taoal easily understood
We want the bin 10 be In The form
wpleh Il caa be m0si easily read BY
The saxfaysr. said senator l'enroso.
We 70 not want 50 have several hun
gii'cl atlendtaentI attached IKE bar.
nilcirs 10 the present hw.'
Democratic, ~. well as Repuhiiean.
iacmbers q the Flnnnee Committee
were 10 attendance Although the
comuittee wufked o. the bsli for seY.
eeal hours, ~ aetIon was taken Win
reference 70 nny controversial points
ID slie bill.
Pr Tlinaans 4, Adams. tax expert IL
The Treasury Department. WHO vas
chiefly Responsible Tor tbs dgagfing
Of the bin IS ofiginallx Submitted to-
tho HORSE committee ~ the treasury.
MAS present and explained various fta.
lures " The house treasure. The cam
laittee began 1T the beeinning IT the
blil and started Il Fcud tlie measure
through, section By scction. Darlng
the fonr hours only IL 81 the 50 pages
of the biil were covered. The see.
tlons read lnelaslea those relating to
personal service corporations. those
deieHlna foreign tyadets and foreign
trade corporations. nna various fea-
sures for determining gain 81 loss lls
computing Income taxes These sec.
il0ns lilrt0le provision Tor fIat
rate u ia pr gent d the net profit
from the sale of cnpital assets when
Taxpayers total nci Income and
eapliai net gHin exceed $4,000
There Was considerable discussion
over the netisod of taxing personal
service corporations Tho bin nov
provides for taxing personal service
corporations n liat rae Of I2ik per
cent ID the SANG manuor as ordinary
corporation are 10 be taxedsa Hereto.
fore personal service corporations hsxo
been taxed "a The same manner as
corporations are - be- taxed. Hereto
LEGALITY II this procedure has been
raised as result 81 supreme Court
deeision.
Some Of the sections disclosed re-
lated 70 the taxation Of Income IN
VOWED 10 gifts Of bcouests. The bin
sunkes d number Ok amendments 10
the existing law dealing with tits aub.
feet.
There WIS no discussion OF The Ques
tioH az to whether the income INK
| changes shnli be retroactive on income
~ the calendar year 1921. There also
| wus no discussion o. the plan proposed
BY Senator snipot 81 Utah for d 3 per
cent Tax On Inpnufnctnrers sales. sen
ator Smoot dld DOT bring up this aues
zion md win not press the matter
Until the sections OF the bin dealing
with miscellaneous taxes are reached.
Tile change ID The form OF the Bill
from series OF amendments to d
complete revision OF existing law was
enc o. the proposals advocated By
senator Slaoot.