Pueblo chieftain., 1921-08-16
Levy REVISION
PLAN IS LAID
BEFORE HOUSE
Changes Made So That
100000, ,OC0 More
VIII Be Paid

Washington, D. c., Aug. 15-CBy Ths'
Associated Press)-The administration n
tax revision bill, was laid before the
mouse of representa- tives today after this
Republican membership OF that body
in conference had changed II 30 as to
make repeal OF the excess profits taxi
cess of 81 per cent effective next JAM
uary /. instead of last January L
This change on the basis of previous. I
treasury estimates would result in the
corporations and individuals with large.
incomes paying the government in the
next calendar year something like |
500 100000 more than th=y would have /
paid had the administration plan Of !
making the repeals retroactive pre-
vailed.
Total tax reduction for the nscal year
under the bill as revised were e.u-
mated by some majority members of ,
the ways and means committee at
1850 OOo,O 900 as against approximately.
$3.50 100000 planned by committee Re- 1
publicans and the total tax Yield at,
about 81. 200. 600, 600
as a result of the changes made byi
the Republican conference, majority
committee members plan further 1
amendment of the bill before its pre-
sentation in the house so as to make,
corporation income tax twelve and one
half per cent after next January I. !
instead of Is per cent as originally
planned and the manufacturers tax on
cereal beverages six cents a gallon in
stead OF twelve cents.
Under plans adopted by the party
conference tho bill will be taken UP In
the house at Ii o'clock Wednesday un-
der a special rule calling for 4 ANAL
vote at o'clock in the afternoon Sat
urday Two days will be given over
to general debate and two days to con-
sideration of amendments under the
iive minute rule, with amendments of
committee members given preference.
Democratic members OF the house
plan to hold a caucus tomorrow after
noon to decide upon a course OF action.
while the measure Is under consider
alton. They also are expected TO de-
termine whether Democrat. on tn.
ways and means committee shall nle
minority report.
In the meantime the full committee
viii meet to pass finally upon the bill.
but this is expected TO be a mere for
mality.
The Republican conference lasted
several hours. Hith Western members
leading the fight to reject the plan for
retroactive repeal of the excess profits
and higher Income surtax rates. which
was agreed upon at the White House
tax conference last Tuesday. Repre-
sentative frear. OF Wisconsin a menu
hcr of the ways and means COMMITTEES.
was understood to have insisted that,
tho house pass on the effective date of
the repoals but the conference finally
adopted as to 81. a motion by Repre-
sentative Mann OF Illinois that the re-
peal date he next January l.
These changes carried with them
delay until next January !. in the
proposed increase OF per cent in
80 -h
In this figure was made by the con-
ference, but the committee members
decided to cut II in half. as 1t was
contended that a per- cent increase
would be unnecessary II the excess
profits and the surtax were imposed
FOR this taxable year.
Additional revisions include exemp-
tion from taxation of the salaries Of
the president of the United States md
the Judges of the supreme and In
ferior federal courts and also amounts
received hy individuals, as compensa-
tior, family allotments and allow
ancos, under provisions of the war
risk Insurance and vocational re-
habilitation acts a change also is
made In life insurance capital taxa
ton. the bill requiring them to pay
the normal corporation tax in lieu OF
the levies on policies when written
and all other present taxes except the
corporation stamp tax and certain
stamp taxes.
Foreign life insursnc. compani..
would pay on the net income source.
within the United States
Another important section OF tn.
new bill. outlines a seenral plan to
tax American concerns, doing prac-
tically all their business in foreign
countries only on the income received
from American sources. They now
are taxed on their entire income,
which is contended to place them at
a disadvantage with competing for
eisn houses
Personal service corporations, freed
by the supreme court from corpora
ton taxes would be brought specific
ally under the corporation income tax
by the bill. Exemption from taxes
would be granted to farmers CO.
operative purchasing operations as
well as to selling organizations where
the articles purchased are told over
to members OF the organizations vat
actual cost plus necessary expenses"
Under an hmebdment to the state
estate Law sections OF the present Law.
amounts receivable as insurance upon
the life OF 4 nonresident dec.ndsnc
and any moneys deposited in any
bank banking Institution or trust
company in the United states by or
for a nonresident decedent who was
not engaged in business In the United
states at the time OF his death would
he exempt from taxation.
Other provisions provide that no
amusement tax shall be levied on nd
missions all the proceeds Of which
inure exclusively to the benefit Of