The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-12
REPUBLICANS SPIKE
DEMOCRATIC GUNS
G. 0. p. in Senate Will Not
Attempt to Block Rev
enue Bill.
TO HELP RECONSTRUCTION
Measure Probably Will Pass
After Alterations Leaving
No Chance. for Fight.
Sn.cinl D,spntch 10 TIE suN.

| WASHINGTON, Dec. 1l.-Democrati'
hopes of the development Of a politica
| issue for their party through Repub
llcan opposition to the pending reve
nue. bill which would defeat tina
| measure in the Senate were smashed
to-day when It became known in thu
Senate that the Republicans woult
engage in no effort to block this vita
legislation. So far as the Democratic
majority in Congress is concerned tho
| defeat of the Kitchin- Simmons meas
ure would bring no sorrow.
The organization thus would bt
enabled to go before the country and
set up the clamor that through
Republican perf1dy in Congress the
great measure. the foundation stone oil
the entire reconstruction programme
OF the nation, had been done to death
The Republicans are willing to admit
OF no such situation. They will dis
cuss and deliberate over the revenue
bill, but when they have discussed
and perhaps materially assisted in the
alteration OF the measure they will
pass Il.
This determination. 1t is believed by
the leaders. removes from the Demo
Gratis an issue which they had planned
to make the groundwork OF their
efforts to regain supremacy in Con-
gress.
Penrose to Lead Opposition.
vpl,o .o...,,o .,,i -.o, ,x,olo tbn t,,,ei
ness before the Senate after the morn
ing hour. The reading proceeded rap
idly. with Senators La Toilette wis
consin) and Gronna (North Dakota)
repeatedly asking that one item or
another be passed over for future dis
cussion. The progress. although ap-
parenty rapid, was indeed only the
perfunctory first reading and from II
only the barest indication of the COM
ing struggle could be discerned.
Senator Penrose (Pa.) will address
the Senate tomorrow, making the
opening Republican speech in opposi-
ton to the proposal to legislate for
two years in advance through inclu-
sion in the pending measure OF the
provision that the taxes levied as Of
1919 shall be approximately two-thirds
OF the gross levy for 1918. 1t is upon
this feature of the bill that the Re-
publican opposition will concentrate.
Senator Smoot (Utah) to-day in
PRODUCED his personal minority report,
explaining his advocacy Of the / per
cent. sales tax on retail transactions,
which he has introduced as an amend
ment and supported in the Finance
Committee on the ground that it Of
fered a simple substitute capable OF
raising 1000. 10000. This tax Sena-
tor Smoot would have replace the spe-
clal taxes, stamp taxes and other pet
" annoyances to commerce and in
dustry which the Kitchln measure
contained and which the Finance Com
mittee only in part eliminated.
Senator Shoots Proposals,
Every individual whether in bust
ness as such or as a member of n
partnership would have been treated
alike" Senator Smoot said Every
corporation would have been taxed
upon the same basis and the question
OF capital invested, watered stock and
bonded Indebtedness would not have
entered into the question OF the
amount of tax to be imposed with the
single exception OF few corporations
with a capital stock of over $1,000. =
100000 and making undue profits dur
ing the prewar period. I would have
provided a separate provision for tax
ing these few corporations. | would
have provided for straight war
profts tax with certain notifications
TO meet to-day's changed conditions.
Il believe that there should be elm
mated from the bill all the harassing.
nagging taxes md substituted for
them l per cent. sale tax on all
goods sold for consumption or use. A
tax OF that character would in no
way embarrass the producer or con-
sumer and would yield a revenue Of
over 81 200, 000,O 0O."
Senator Smoot then outlined a few
OF the special taxes which he would
not have disturbed and suggested:
III this plan Nwere adopted the bill
would provide "a larger revenue for
the Government than will be received
under the provisions OF the pending
bill and unjust and discriminatory
taxation would be avoided"
Not In Line With McAdoo.
Senator Smoot reiterated his agree
ment in the Republican opposition TO
the two year plan OF taxation. He in
sisted, however. that the Democrats
had not followed the recommendations
of Secretary OF the Treasury McAdoo.
Senator Smoot called attention to
the fact that the reuuiremepta ~ ,,,o
Government for the fiscal year 1919 20
will be about $4,000, 600, 900 in ap-
preparations, and he said this esti-
mate does not take into consideration
future estimates that may be sent to
Congress that will be- included in de-
fciencv appropriation bills. The So
oOOoOo,OOO required will be reduced by
whatever amount is received as sal
wage from the sale OF war material
paid for and not now needed either in