Show Flat Tax lax on Incomes of Corporations Pr vided for Director 1 M. M L. L l Appeals l to lo Senate Committee for toi Liberal Treatment of Oil Producers in ill War Tar Revenue Bill Br By Oct 1 IS The S.-The The C G per percent percent W WASHINGTON fv cent differential against the undistributed un un- uni- uni I dl distributed d profits of ot business which the House incorporated In tile the revenue bill was as stricken out by the Senate finance committee today Under this chan change chango CI the Income tax rate rato on corporations corporation would be uniform at 12 per cent upon all tho Income whether distributed or not The Tho l Home bill fixed the rates rate at IS per pcr cent on undistributed d income and 1 12 per cent centon on that portion distributed to stockholders stock stock- holders The Tho Sonata Senate committees committee's action brings to an end a controversy which Inns lias been wa waged ever vrr since since- the tIne House voted to put this differential in the bill s 's of or business corporations corporations corpora corpora- lions protested vigorously against the time differential their contention b bing that V t would Inflict a 1 heavy penalty upon 1 business which would be ruinous in a n. multitude of or cases I War nr Contractor Protest Conspicuous among th the tho lines of or business business business busi busi- 1 ness which protested against Dg the time nea heavier ier lor tax on undistributed profits were corporations which were formed foi fOl or orthe the specific purpose of undertaking government war contracts Corporations Corporations Corpora Corpora- lions of oC this character not having h had d time to make any distribution to their stockholders would have been beon heavily penalized under tho the House provisions I It t was said The Senate committee struck the en entire entire en- en tire section from the bill without putting put ting ling anything In its place But a new section will be bo drafted in which the tho rate rato of 1 12 per cent will be fixed as tho the rate which corporations must pay 30 on their income after the usual deductions and allowances have havo been made War ur Board Bonds E Exempted Another amen amendment introduced I b by bythe bythe the committee today exempts from all allt t taxation bonds issued sued b by the war finance corporation This was done dono ono to 10 strengthen then the he credit of ot tIm the corporation corporation corpora corpora- tion and enable it more effectively ol to carry out the purposes for which It J was created p lr M. M I nequa oil 11 director of the fuel I Q i I administration mInistration and Norman orman B. B Deecher Beecher solicitor of ot the division spent the en entire en- en tire afternoon In conference with th the Committee Thc Tic sought to obtain liberal liberal lib lib- eral rai lc legislation for tor the producers and operators In the oil industry in order to io stimulate and encourage e production throughout tho country Oil Unee Uncertain 1 I Mr r. r Requa strongly urged that oil producers should bo be exempt f rom om an any taxation except the individual tax He Ho said that prospecting for oil and dl digging wells is an extremely l hazardous lutz haz venture Venture that few Cew succeed and lOan many fall fail and that if tho the corporation Income taxes aro are mado to apply against who rno undertake oil development cry few o of time the corporations will be wilting willing to make malce tho time venture As s evidence o of ot the uncertainty of the tint oil business as a 1 whole Mr lr the fact that the tine lifo life of ot an oil well I la not nol more than three years This Tinis is too short a time he ho argued to make the undertaking a paying paring ono if heavy Y tax taxes s are arc to be exacted Mr submitted to the committee commIt commIt- teo tee a number of proposed amendments to the bill to meet his contention on behalf of or the tine oil producers The Tine committee com corn discussed d these amendments and took tool them under advisement Special Provision planned Senator Simmons chairman of or the committee said Ald It probably Will wll be necessary necessary essary to write into the time bill ill some sonic special special ape ape- cial provisions for the tine benefit of or oil producers The rhe committee appreciates he ho said the precarious nature 0 of tine the oil Industry and for that reason Is illing to make some concessions concession Tho The committee adopted an amendment amendment amend amend- ment mont to the new section adopted yesterday yesterday yes yes- cs to permit ermit taxpayers to deduct from their taxable income the amount of or net losses for any taxable year ear Theno The will make tho the section now no amendment apply appl to partnerships and the bon bon- I of a trust as ag well as to coi cot and md individuals |