The talking machine world (Jan-June 1928)

166 The Talking Machine World, New York, June, 1928 President Signs New Revenue Bill Aiding Instalment Dealers Includes an Amendment Designed to Relieve Merchants Doing Instalment Business From Paying Double Taxes — Reduces Corporation Tax Rate to 12 Per Cent Washington, D. C, May 31. — On Tuesday President Coolidge signed the new Revenue Bill, including the various provisions agreed upon by the confreres of the Senate and House, after prolonged discussion, thus making the new measure a law of the land. The new provisions include an amendment designed to relieve merchants doing business on the instalment basis from paying double taxes, the reduction of the corporation tax rate to 12 per cent, and the retention of the present surtaxes on individual incomes. The bill also increases the exemption of corporations from $2,000 to Reputation is the life-blood of the successful business. Televocal quality Tubes M help build reputajs tion because their performance is always a little bit better. A complete line of A.C., D.C. and Power Tubes of all types. Televocal Corporation Televocal Building Dept. G-l 588 12th Street West New York, N. J. THevpfcil Quality Tubes $3,000 and increases from $20,000 to $30,000 the maximum of earned income. The Senate provision for publicity of returns was abandoned, as was the House provision for a graduated tax on small corporations. The 12 per cent tax rate on corporate income was a compromise between the House rate of 11^4 per cent and the Senate rate of 12i/£ per cent, and will save the corporations of the country a total of $123,450,000, while the increase in exemption will save another the round sum of $12,000,000. The total reduction in the bill finally agreed upon is approximately $220,000,000, somewhat in excess of the $210,000,000 limit set by the administration and the $206,000,000 bill passed by the Senate, but well below the $290,000,000 cut made by the House. The instalment provisions of the bill stipulate that "if a taxpayer elects for any taxable year to report his net income on the instalment basis, then in computing his income for the year of change or any subsequent year, amounts actually received during any such year on account of sales made in any prior year shall not be excluded." It is also provided that "if any taxpayer by an original return made prior to February 26, 1926, changed the method of reporting his net income for the taxable year 1924 or any prior taxable year to the instalment basis, then, if his income for such year is prop erly to be computed on the instalment basis — "(1) No refund or credit of income, warprofits or excess profits taxes for the year in respect of which the change is made or any subsequent year shall be made or allowed, unless the taxpayer has overpaid his taxes for such year, computed by including, in computing income, amounts received during such year on account of sales or other dispositions of property made in any prior year; and "(2) No deficiency shall be determined or found in respect of any such taxes unless the taxpayer has underpaid his taxes for such year, computed by excluding, in computing income, amounts received during such year on account of sales or other dispositions of property made in any year prior to the year in respect of which the change was made." "(b) Nothing in this section shall be construed as in any manner modifying sections 607, 608, 609 or 610 of this Act, relating to the effect of the running of the statute of limitations." It is provided, however, that relief is not to be provided for taxpayers shifting to the instalment basis and filing amended returns for previous years, although they are to be protected as regards their original returns. The amendment provides that in case of claims by the taxpayer for refunds the double taxation rule shall apply, but that in case of claim by the Treasury Department for deficiency the single tax rule shall apply. It is stated that most of the claims in the music industry which have arisen or would arise are deficiency claims and protected by the amendment. It is further understood that there are no pending deficiency claims of any size arising from amended returns so that none of these things have been adversely affected by confining the relief only to the original returns. Mohawk Distributor Features Service W. A. Everly and F. E. Fluegel, officials of the National Auto & Radio Co., are here shown before starting off a rush order of Mohawk receiving sets destined for Roshek Bros., Dubuque. "Fast delivery service," even though it necessitates the use of airplanes, is a Mohawk trait. Fada Metropolitan Trade Dines Seven hundred Fada franchised dealers from the New York territory were entertained on May 25 at a banquet at the Hotel Astor, New York City, marking the culmination of the exhibit of new Fada models. The gathering was addressed by R. M. Klein, general manager.