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should be repealed.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should be repealed in addition to repeal of the Excess Profits Tax.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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