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Show RELIEF FAVORED ON PROFITS TAX Smaller Corporations to Be Exempt WASHINGTON, Nov. 15 UPS A house tax subcommittee tentatively agreed today to exempt all corporations corpora-tions having $M00 nst income, or less, from th undistributed profits tax. Chairman Vinson D. Kentucky, la announcing this step to meet growing demands for tax relief for business, said it would apply to two-thirds two-thirds of the corporation which have a net Income. A loss of some 17,000.000 In annual revenue will result, Vinson said. "Th committee," he added, "Is still considering added relief provisions pro-visions for corporation having nst incom of more than $5000 and extending ex-tending up to a bracket not yet tentatively ten-tatively agreed on. But the limit will be at least $00,000 nst Income or more." These additional means of easing th tax burden of business, hs said, also wsrs dscided upon tentatively: Allowing a carryover of operating losses for one year, to be applied against adjusted net income in the following year in arriving at the basis -for the undistributsd profits tax. Thus If a corporation had a net operating loss of $100 this year and a net income of $100 next year, he explained, the firm would have to pay no undistributed earnings levy only the normal corporation tax. The loss from this rslief provision would be several million dollars, be estimated. |