Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-12-22
Final Vote on the Measure Ex-
pected To Be Reached Mon
day and Conceded That the
Democrats Will Pass It.
CORPORATION INCOME
RATES ARE REDUCED
Republicans Accuse Democrats
Of Dodging Extra Session
and Are Accused Of Trying
to Force One,
tsr 1o'"'ne ,ouarAc s-so,.r LEASED ~'"s,

tsN MORNING JOURNAL SPECIAL LEASED WiHEl
Washington, Dec 2l-By a strict
party vote the senate late today
adopted all provisions in the war
revenue bill prescribing tax rates for
1920, which democrats advocated
and republicans opposed, but failed
to reach final vote on the measure.
Adjournment was taken until Mon
day, when its passage is expected.
Disposition of the controverted
1920 tax provisions, designed to
raise about four billion dollars rs
compared with the six billion dollar
estimate for 1919, precipitated long
and spirited debate with numerous
partisan clashes.
Action was taken virtually on a
test vote disposing of the provision
reducing the individual income nor
NAL tax rate TO eight per cent in 1920
on motion by Senator McCumber
of North Dakota, republican, TO
strike out this section, thirty-seven
democrats voted to retain it and
thirty-on republicans were recorded
for its elimination.
Later all other 1920 provisions
were adopted with perfunctory viva
voce votes Senator Penrose of Penn
syNania, senior republican member
of the finance committee offered mo-
tons TO strike out the sections, but
these were bowled over by a chorus
OF democratic mays"
Among the 1920 clauses thus APP
proved was the provision for rcdue-
tion in that year of the corporation
normal income tax rate from 2 to 3
per cent. In similar manner the sem
ate adopted the 1920 war excess pro-
fits tax section, prescribing excess
profits ranging from 90 to 40 per
cent, in lieu of those from 20 to 60
per cent for 1919 and aboishing the
80 per cent war profits levy after
1919. An amendment by Senator
Jones of New Mexico, democrat, to
continue war profits taxes in 1919,
was voted down, Al to 10.
Disposition of the 1920 tax ques-
ton caused such protracted debate
that Chairman Simmons abandoned
plans for MID session and agreed
to adjournment until Monday at 10
o'clock in an effort to expedite pass
age that day, with a night session II
necessary. With this issue out OF
the way. senate leaders predicted that
other provisions, including the inner
itance, luxury and other sections,
would be disposed of speedily.
In the partisan contest over fixing
tnr
Penrose Townsend of Michigan, Me-
Cumber of North Dakota, and Smoot
of Utah, led the republican attack,
while Chairman simmons and Sena-
tor Smith of Georgia, defended the
democratic policy Charges by the
republicans that in SO doing, political
advantage was sought with view 10
avoiding an extra session of the next
congress in which republicans Will
have a mai ority were met by asser-
tons from the democrats that repub-
licans desired to force an extra SEES
sion.
A suggestion by Senator Borah OF
Idaho. republican, that there was
some mystery" about changed atti-
tuue OF fepuDilCdHS Oh tlie piil' S"uaS"
evident surprise among both factions |
After the finance committee had
adopted the 1920 plan, Senator Borah |
said republican leaders threatened to |
filibuster and prevent the bills pass
age soon after, ne added, they sud |
denly changed front" and proposed !
prompt enactment
F. Senator Penrose replied that at
first many republicans we're disposed |
to defeat the bill but finally agreed
that as the government needed the
money, its prompt passage was desir-
able.
During the debate there were re-
puh,;can predictions that an extra !