State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 50

906

PUBLIC LAWS-OHS, 989, 994-SEPT. 22, 23, 1950

[64 STAT.

[CHAPTER 9891

September 22, 19W0

I(H. J. Res. 519)

IPublic

Law 8131

National orange.
Erection of marker
in D.C.

*Approval by National Park service,
etc.

Fun&.

JOINT RESOLUTION
To permit the National Grange to erect a marker on Federal land in the District
of Columbia.

Resolved by the Senate and House of Representatives of the United
State of America in Congress assembled That the Secretary of
the Interior be, and he is hereby, authorized to grant permission
to the National Grange to erect a marker, at an appropriate place on
public ground of the United States in the vicinity of the intersection
of Madison Street and Fourth Street Northwest, District of Columbia,
in commemoration of the founding of the National Grange: Provided,
That the design of the marker and the plan for the treatment of the
grounds connected with its site and its adequacy and propriety for the
site designated shall be approved by the National Park Service, the
Commission of Fine Arts, and the National Capital Park and Planning
Commission, and that it shall be erected under the supervision of
the Secretary of the Interior; that all funds necessary to carry out
its erection and the necessary landscaping of the site shall be supplied
by the National Grange in time to permit the completion and erection
of the marker not more than one year after the exact site has been
determined; and the United States shall be put to no expense in or by
the erection of the said marker.
Approved September 22, 1950.

I

(CHAPTER 994]
September 23, 19.50
[H. R. 8920)
(Public Law 814)
RevenueAct orn19o.

AN ACT
To provide revenue, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That (a) SHORT
TiiE.-This Act, divided into titles and sections according to the
following Table of Contents, may be cited as the "Revenue Act of
1950":
TABLE OF CONTENTS

Post, p.910.

TITLE I-INCREASE IN INCOME TAX RATES

Post, p. 910.

PART I-INDIVIDUAL INCOME TAXES

Sec. 101. Increase In normal tax and surtax on Individuals.
(a)
(b)
See. 102.
See. 103.
See. 104.

Normal tax.
Surtax.
Individuals with adjusted gross income of less than $5,000.
Computation of tax In case of certain joint returns.
Effective date of part I.
PART II-CORPORATION INCOME TAXES

Post, p. 914.

See. 121.
(a)
(b)
(c)
(d)

(e)
(f )
(g)

Set. 122.

Increase In rate of corporation income taxes.
Amendment of section 13.

Amendment of section 14 (a).
Amendment of section 15.
Mutual Insurance companies other than life or marine.
Regulated investment companies.

Tax under consolidated returns.
Technical amendments.
Credits of corporations.
Dividends received credit.
Credit for dividends paid on certain preferred stock.

(a)
(b)
(c) Western Hemisphere trade corporations.
Se. 123. Effective date of part 11.

, " 1,

y

,

~~v~

__

-

64

STAT.]

97

81ST CONG., 2o SESS.-OH. 904-SEPT. 28, 1950
TABLE OF CONTENTS-Continued
PART 111-FISCAL YEAR TAXPAYERS

Past, p.020.

See. 131, Fiscal year taxpayers.
(a) Amendment of section 108.
(b) Effective date.
PART IV-INCREASE IN WVITITOLDING OF TAX AT SOURCE ON WAOES

Post,

p.921.

Sec. 141. Percentage method of withholding.
Sec. 142. Wage bracket withholding.
Sec. 148. Effective date of part IV.
TrrrE 11-MIELLANEOUS INCOME

TAX AMENDMENTS

'

P*
9?*

Sec. 201. Extension of time in the case of discharge of Indebtedness.
Sec. 202. Income-tax exemptions for members of the Armed Forces serving in
combat areas.
(a) Exclusion from gross income.
(b) Withholding of income tax on wages.
(M) Receipts.

See. 203.
(a)
(b)
(c)
See. 204.
(a)
(b)
(c)
Sec. 205.
(a)
(b)
See. 206.
(a)
(b)
(c)
Sec. 207.
(a)
(b)
Sec. 208.
(a)
(b)
See. 209.
(a)
(b)

See. 210.
(a)
(b)
(c)
Sec. 211.
(a)
(b)
Sec. 212.
(a)
(b)
See. 213.
(a)
(b)
(c)
(d)

I

Treatment of bond premium in case of dealers in tax-exempt securities.
Amendment of section 22.
Technical amendments.
Effective date.
Circulation expenditures.
Deduction from gross income.
Technical amendment.
Effective date.
Payment of income tax by installment payments and returns of estates
and trusts.
Payment of income tax by installment payments.
Filing of returns and payment of tax by fiduciaries of estates and
trusts.
Election as to recognition of gain in certain corporate liquidations.
Amendment of section 112 (b) (7).
Basis of property.
Effective date.
Percentage depletion.
Transportation from mine.
Effective date.
Treatment of certain redemptions of stock as dividends.
Amendment of section 115 (g).
Effective date.
Redemption of stock to pay death taxes.
Certain distributions not treated as dividends.
Effective date.
Capital gains and losses.
Definition of capital assets.
Amendment of section 117 (j).
Effective date.
Short sales of capital assets.
Treatment of short sales.
Effective date.
Treatment of gain to shareholders of collapsible corporations.
Collapsible corporations.
Effective date.
Capital gains of nonresident alien individuals.
Nonresident alien Individuals temporarily in the United States.
No United States trade or business and income of more than
$15,400.
Technical amendment.
Effective date.

I

908

PUBLIO LAWS-OH. 994-SEPT. 23, 1950

[64 STAT.

TABLE OF CONTENTS-Continued
Sec. 214. Treaty obligations.
Sec. 215. Net operating loss deductions.
(a) Allowance of five-year carry-over.
(b) Effective date of subsection (a).
See. 216. Amortization of emergency faciities.
(a) Amortization deduction.
(b) Technical amendments.
(c) Gain attributable to amortization deduction.
(d) Effective dates.
See 217. Amortization of premium on convertible bond.
(a) Premium attributable to conversion features of bond.
(b) Effective date.
See. 218. Stock options.
(a) Treatment of certain employee stock options.
(b) Effective date.
Sec. 219. Payment of tax withheld at source from nonresident aliens.
See. 220. Employees of United States working in possessions of United States
or in the Canal Zone.
Sec. 221. Residents of Puerto Rico.
(a) Income of Individuals from sources within Puerto Rico.
(b) Citizens of the United States residing in Puerto Rico.
(c) Taxation of income of residents of Puerto Rico.
(d) Aliens residing in Puerto Rico.
(e) Withholding on alien residents of Puerto Rico.
(f) Withholding of tax on wages.
(g) Declaration of estimated tax.
(h) Foreign tax credit.
(I) Collection of taxes in Puerto Rico.
(j) Technical amendments.
(k) Effective date.
Sec. 222. Regulated investment companies.
See. 223. Personal holding company income.
Pos1, P. 017.

TITLrE IlI-THEATMENT OF INCOME OF, AND GIre

AND

BEQUESTS

TO,

CERTAIN

TAX-ExEMPr ORGANIZATIONS
Pot, p.907

PART I-'rAXATION OF I'SINESS INCOME OF CERTAIN TAX-EXEMPT ORGANIZATIONS

See. 301. Income of educational,
organizations.

charitable,

and

certain

other

exempt

(a) Tax on certain types of income.

(b) Feeder organizations.
(c) Technical aminedments.
See. 302. Exemption of certain organizations for Diust years.

See. 303. Effective date of part I.
Post,

P. 9" 1

PART II-CITARITABLE, ETC., DEDUCTIONS OF TIUS1S NOT EXEMPT FROM TAXATION

See. 321. Charitable, etc., deductions of trusts.
(a) Amendment of section 162.
(b) Technical amendments.
Sec. 322. Effective date of part
Post, p.957.

11.

PART III--TA88 OF EXEMP1ION UNDER SERION 101
O01TS AND IIEQ'AT
VirTAI N

(6)

AND DISALLOWANCE

OF

Sec. 331. Exemption of certain organizations under section 101 (6) anal deductibility of contributions made to such organizations.
Sec. 332. Technical amendments.
(a) Amendment of section 23 (o (2).

64 STAT.]

81ST CONG.

0

o2D
SESS.-CI. 904-SEPT. 28, 1950

TABLE OF CONTENTS-Continued
(b)
(c)
(d)
(e)
(f)
(g)
(h)
See. 333.

Amendment of section
Amendment of section
Amendment of section
Amendment of section
Amendment of section
Amendment of section
Amendment of section
Effective dates.
PART IV-INFORMATION

23 (q) (2).
101 (6).
505 (a) (2).
812 (d).
861 (a) (8).
1004 (a) (2) (B).
1004 (b).
TO BE MADE AVAILABLE TO THE PUBLIO

1bst,

p.96.

See. 341. Information to be made available to the public.
(a) Information with respect to certain charitable, etc., deductions.
(b) Effective date.
TITLE IV-NCOMiE TAXES OF LIFE INSURANCE COMPANIES

VW, P. 961.

See. 401. Correction of formula used in computing income taxes of life insurance

companies for 1949 and 1950.
(a) Reserve and other policy liability credit.
(b) Technical amendment.

(c) Effective date.
Sec. 402. Filing of returns for taxable year 1949.
TITLE

V-ETATE TAX

Pot, p. 962.

Sec. 501. Transfers in contemplation of death.
(a) Transfers, etc., In contemplation of death.
(b) Amendments of section 811 (c) and (d).

(c)
Sec. 502.
See. 503.
(a)
(b)

Effective date.
Repeal of deduction for support of dependents.
Reversionary Interests in case of life insurance.
Amendment of section 404 (c) of Revenue Act of 1942.
No interest on refunds.
TITLE VI-ExcIsE TAXES

See. 601. Sales at auction.
See. 602. Retail sales by United States or by its agencies or instrumentalities.
See. 603. Tax on coin-operated gaming devices.
(a) Increase in tax on slot machines.
(b) Effective date.
See. 604. Federal agencies or instrumentalities.
See. 605. Television receiving sets.
(a) Imposition of tax on television receiving sets.
(b) Credit for tax paid on automobile television sets.
(c) Technical amendment..
See. 606. Imposition of tax on quick-freeze units.
Sec. 607. Transportation which begins and ends within the United States.
(a) Transportation of persons.
(b) Transportation of property.
(c) Effective date.
See. 608. Allowing stamps to be attached in foreign countries to certain tobacco
products.
(a) Tobacco and snuff.
(b) Olgars.
(c) Effective date.
See. 609. Articles sold for use of aircraft engaged in foreign trade.
See. 610. Effective date of sections 601, 602, 605, and 66.

Post, p.963.

910

PUBLIC LAWS-OII. 094-SEPT. 23, 1950

[6

STAT.

TABLE OF CONTENTS-Continued
Fs, p. 97.

TITLE VII-ExOEss POFITS TAx
See. 701. Excess profits tax.

(b) Ac'r AMENDATORY OF INTERNAL REVENUE CoDE.-Except as
otherwise expressly provided, wherever in this Act an amendment
or repeal is expressed in terms of an amendment to or repeal of a
chapter, subchapter, title, supplement, section, subsection, subdivision, paragraph, subparagraph, or clause, the reference shall be considered to be made to a provision of the Internal Revenue Code.
(c) MEANING OF TERMS USED.-Except as otherwise expressly
provided, terms used in this Act shall have the same meaning as
when used in the Internal Revenue Code.

TITLE I-INCREASE IN INCOME TAX RATES
'A

Part I-Individual Income Taxes

:1

Sec. 101. INCREASE IN NORMAL TAX AND SURTAX ON INDIVIDUALS.
53 Stat. 5.

26U.S.0., sup.ur1,
Ill.

I

"SEC. 11. NORMAL TAX ON INDIVIDUALS.
"(a) TAXABLE YEARS BEGINNING AFTER SEPTEMBER 30, 1950.-In

53 Stnt. 1U.
26 U. S.0. 1 2.;
Sup. II, 25.
S
680.
..
26 U.S.0. U 400-M;

I

1~
"9

4)

A
53 Stat. 17.
26 U. S. 0. 1 25;
Slp .m111,92.5.

d

I

(a) NoInAL TAX.-Section 11 (relating to the normal tax on
individuals) is hereby amended to read as follows:

.55 Stat. 689.
%8 U. p.0 0. 11400Post. S. O(l
404; Sup. III1400.
Post, p. 92.
Pog, P. 9Q.
53 Stat. 5.

20U, S. 0.,Sup.IIf
*12 (b).

the case of taxable years beginning after September 30, 1950, there
shall be levied, collected, and paid for each taxable year upon the
net income of every individual a normal tax of 3 per centum of the
amount of the net income in excess of the credits against net income
provided in section 25. For alternative tax which may be elected if
adjusted gross income is less than $5,000, see supplement T.
'(b) TAXABLE YEARS BEGINNING BEFORE Ou rOBER 1, 1950.-In the
case of taxable years beginning before October 1, 1950, there shall
be levied, collected, and paid for each taxable year upon the net
income of every individual a normal tax determined by computing
a tentative normal tax of 3 per centum of the amount of the net
income in excess of the credits against net income provided in section
25, and by reducing such tentative normal tax as provided in section
12 (c). For alternative tax which may be elected if adjusted gross
income is less than $5,000, see supplement T. For computation of
tax in case the taxable year (other than the calendar year 1950)
ends after September 30, 1950, see section 108 (o)."
(b) SURTAX.-

(1) So much of section 12 (b) as precedes "Not over $2000"
is hereby amended to read as follows:
"(b) RAMS OF StnerAx."(1) TAXABLE YEARS BEGINNING AFTER SEPTEMBER 30, 1050.-

A

In the case of taxable years beginning after September 30, 1950,
there shall be levied, collected, and paid for each taxable year
upon the surtax net income of every individual the surtax shown
in the following table:
"If the surtax net income Is:
asrm.

N"
K

~.,

The surtax shall be:"

(2) Section 12 (b) is hereby amended by adding at the end
thereof the following:
"(2) TAXABLE YEARS BEGINNING BEFORE OCTOBER 1 1o0.-111
the case of taxable years beginning before October 1, 1950,, there

L

0