THE NATIONAL CHAMBER OF COMMERCE 
TAXATION OF CAPITAL ASSETS 
Through referendum the Chamber is formally committed to a 
distinction, for purposes of the Federal income tax, between gains 
realized from the sale of capital assets and income received from 
business or other current activities, and it advocates a policy of 
less burdensome rates upon the former when properly defined than 
upon the latter. Treatment under the present law of gains on 
capital investments as taxable income in the year when they are 
realized operates to prevent the consummation of numberless trans- 
actions essential to the normal growth and development of the 
country’s business. The Government is thus deprived of revenues 
which would accrue to it if the burden was reasonable and the 
transactions were consummated with the increase in business volume 
thus to be expected. For these reasons, if in the maintenance of 
necessary revenues such gains be treated as income, then we urge 
more reasonable rates to apply on such capital gains, properly 
defined. (Resolution, Ninth Annual Meeting, 1921.) 
Court oF TAx APPEALS 
In the revision of the revenue laws, which the Chamber believes 
essential, there should be provision for a court or courts of tax 
appeals, to be appointed by the President and to be entirely separate 
and independent from the Treasury Department. This court should 
adjudicate cases in dispute between a taxpayer and the Bureau of 
Internal Revenue. (Resolution, Ninth Annual Meeting, 1921.) 
TAXATION PRINCIPLES 
War Excise Taxes levied in relation to Particular Businesses 
should be repealed. 
War Excise Taxes upon Transportation and Communication 
should be repealed in addition to repeal of the Excess Profits Tax. 
Substitute Taxes: 
Revenues required to be raised due to the repeal of War Excise 
Taxes on Transportation and Communication and on Excess Profits 
should be replaced by use of a sales tax to bring in the whole 
amount. 
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