Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1918-12-11
c. D. P. REPORT
DEBATE On
1920 TAX SCHt|Nt
Simmons Says Interests Will
Gain Billions = Reply
Urges Insufficient Fore
knowledge Of The Facts
Republican A. P. Leased Wire]


WASHINGTON. Dec. 1O.-Debate on
the revised war revenue bill began in
the senate today with the presentation
of the majority and minority reports
from the senate finance committee, De-
fore a small attendance of senator's
The measure has been given right of
way and because of Republican oppo
sition to the fixing of 1920 taxes, dis
cussion is expected to Continue almost
indefinitely.
Chairman Simmons opened debate by
presenting the majority views on the
legislation, while Senator Penrose
spoke for the Republican members, eX-
cept Senator La Toilette OF Wisconsin,
attacking the 1920 taxation plan. SEN
ator Thomas OF Colorado, Democrat,
presented an individual report critics.
ing the excess profits and inheritance
tax features, and Senator Smoot Of
Utah, Republican, plans to file an in
dividual statement tomorrow. Later
Senator La Toilette also will present
his views.
Senator Simmons completed his
statement today and. in defending the
1920 tax provisions, declared that
American business interests are en-
will be called upon to bear during the
period of reconstruction. He asked if
the Republicans, advocating postpone
ment of 1929 legislation, desired to
keep the question in allegiance solely
in order that the next congress, con-
trolled by Republicans, may handle the
matter.
Minority Report Is Read.
The minority report while expressing
general approval of the 1920 tax pro-
gram, declared that extension of ths
legislation to 1920 is without justifi-
cation. Senator Penrose said future
conditions are too uncertain and in
formation at hand insufficient, for con-
gress now ito fix tax schedules ror 1920.
He added, however, that tax reductions
in that year are a foregone conclusion.
Opposition is developing to the elm
ination of the so-called luxury taxes,
while increase of individual income
surtax, corporation and war excess
profits rates is to be proposed.
Senator Simmons said the amend
ment of Senator Pomerene of Ohio,
placing what is designed as a prohib-
tive tax on income derived from the
products of child labor, is intended as
substitute for the child labor law
which the supreme court declared un-
constitutional Senator Simmons added
that he never felt favorable to a pro-
vision that was framed to meet a con-
stitutional question.
Taking up the amendment repeating
the present zone system for second
class mail. and substituting a rate OF
one cent pound for the first 15l
miles, from the place of mailing and
| ", n fC
said the senate all along had beer
opposed to the zone system and thai
members of the committee conse
quently felt justified in repeating the
system, through an amendment to Tho
revenue measure.
Urging the fixing of 1920 taxes now
Senator Simmons said unless there il
an extra session of congress next yea
congress cannot begin work on a bill
until December, 1919, and taxes canno
be fixed on 1919 earnings before tn,
spring of 1920. In absence of knowl
edge. he declared, business interest
would selfishly mark up" prices OIL
consumers in uninformed ignorance O
what tax rates would be imposed.
Then what's going to happen?' MI
Simmons continued will it be tha
these great industries will ltake plac
in their pockets $4,000, 100000 of inor
dinate and overwhelming profits col
lected from the people?
Does the minority advocate thai
simply 50 a new congress of differen
political control shall have the dut
of preparing this new tax bill, tina
the great industrial tax payers shal
pocket this $4,000, 600, ,000?"
The minority report expressed "gen
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