Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-11
Majority of the Party Men,
berS of the Senate nance
Committee Put Their o.,
K, ON New Measure,
Committeeman WERE
DIVIDED, IS REPORT
Repeal of Levy on Freight,
Passenger and Pullman
Transportation Is One of
the Provisions,
tBy The Associated rress.)


publican compromise tax revision
program was approved today by a
majority Of the republican mem
bers of the senate finance commit
tee. Reports from the committee
room were that the vote was five
to four, with one opponent, Sena-
tor Mclean of Connecticut, alb
sent.
The first test vote on the COM
promise, which was an outgroWth
of a threatened revolt against the
original bill by republican senators
in the agricultural bloc" was said
to have been ) to 4 against. This
vote was taken Saturday and those
listed in opposition were Chairman
Penrose and Senators McCumber,
North Dakota; Smoot, of Utah;
Mclean and Dillingham; of YER
mont. Senator Calder OF New
York, was absent.
Pcnrose Cast Deciding Vote.
Chairman Penrose was reported
to have cast the deciding vote for
the program today, with Senator
Calder voting with the opposition.
Senator Penrose will report the
amendments to the senate as a
majority proposal, and he predict
ed they would command practical
ly the united support of the re-
publicans. 1t is understood, how
ever, that some of the committee
members opposing them will con-
tinue the fight on the floor and
will be supported by several east
ern senators.
Differences between the repub-
lican committeeman were reported
to have been one reason for the
abandonment of a plan, discussed
Saturday, to call in the democrat
ic members with a view to having
the amendments reported out by
vote of the entire membership.
Further Reyisions.
After disposing of the compro-
mise program, the republicans
made some further revisions in the
bill, The approved amendments
would provide for:
A graduated increase from the
house income surtax maximums OF
80 per cent on $4,000 to a maxi
mum of SO per cent on S20O,000,
effective next January l.
Repeal of the tax on freight,
passenger. Pullman, oil by pipe
line. express and parcel post
transportation, also effective next
January 1.
A graduated increase in estate
rates from the existing maximum
of 25 per cent on 25,000,0OO to
maximum OF SO per cent on $780,
100000, also effective next Janua-
ary 1.
Retention of the corporation
capital stock tax of 81 on each
$1,000 of capital in excess or
$4,000. Repeal of the $1,000 eX-
emption allowed corporations ex-
cept where the net income is less
than $4,000, effective January
next.
Distilled Spirits.
A flat rate of $6.40 a gallon on
distilled spirits, but with a provi-
sion for a rebate of $420 q gallon
when it can be shown to the sat
isfaction of the commissioner or
internal revenue that the spirits
are used for industrial or medici-
nal purposes.
Repeal of the excise taxes on
sporting goods, furs, chewing gum
electric fans, thermos bottles, |
and hunting equipment,
toilet soaps, and powders and per-
fumes and cosmetics.
Repeal of the per cent tax on
The licensing or leasing of motion
picture films.
Retention of the house proposal
for a flat tax of per cent on can
ly. with elimination of the senate
proposal for 10 per
cent tax on candy selling at
wholesale for more than 40 cents
L pound.
Total Is Reduced.
Retention of the house provision
'or a reduction of from 10 to per
cent in the tax on works OF art.
Of the senate commit
ee provisions for taxes on photo-
graphic apparatus and accessories,
lotel rooms in excess OF certain
lrices and office furniture made
,f imported hardwoods. These
we're the only new taxes proposed
,y the senate committee.
Treasury experts have not. yet
their compilation show
ng the net result of these changes
IN the federal revenues, but "
vas roughly estimated that the TO,
al Of the senate committee Dill
would be reduced by more than
1925, ,000,O 900. Chairman Penrose
aid the amended bill would yield
efficient revenue to leave the