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Show VAST S U MS TO DEflETUHtlEO DYJL S. Government Admits. Certain Tax Collections Made Were Not Warranted WASHINGTON. March ll.-Two or three hundred million dollar will be returned to taxpayers aa the result of concessions made by the federal g-ov- J eminent In Important tax suits argued before the supreme court today. The taxes In dispute arose under the section of the 11 Income tax law which placed a levy on the profit derived de-rived from the sale of cspltal assets stocks, bonds and other securities and provided that this tax should be placed on the rain in value between March 1, lilt, and the date of sale. TAXED ON LOSSES. The result of the application of the provision was that many people were taxed on losses Instead of gatna Be ruritiea purchased before March I, leiS, wi sold t-w lost after the? tn' come tax became effective, but the I selling price hsppened to be higher j than the market value on March 1. 1811, and the government In lower j courts contended this difference In i value was again taxable as income. I Solicitor Cleneral Krlerson In the I court today conceded In behalf of the government that where It Is apparent there Is no gain to the taxpayer, the government cannot place a tax on him, I even though selling price was higher I than the market value on March 1, 111. The action virtually annuls this section of the law, as the supreme i court Is now thought certain to hold It I unconstitutional. . I ANOTHER CONCESSION. The solicitor general slso admitted i that In the case of securities purchased before March 1. 11 S. and sold at a I profit after the Income tax law became j effective, the government can tax only the actual gain and not the Increase in c value at the time of aale, as compared C with the market value on March 1, I 1H. , The suits arose because the market I Talus of many securities was extremely I lew an March I, iU. and under the previous construction of the law big I taxes were Imposed. , The present position of the govern. I! ment Is being opposed by vsrlous tax- f payers who claim that gain derived j from the sale of capital assets Is capl- J tal, not Income, - and therefore Is not taxable under the inoome laws. I The government's concessions were I made In the caees of Frederick K. , Brewster of Connecticut, who won his f suit to recover taxes In lower courts. snd David Goodrich of New York, who I lost. |