Evening star., 1921-10-31
ATTACK REEDP[AN
FOR SOLDIER BONUS
Republicans of Senate Open
Fight on Amendment to
Tax Revision Bill.


revision bill was opened today by
Senator New, republican. indiana, who
raised the point that thes amendment
was unconstitutional.
Senator New said the Resd amend
ment proposed to. tax one class of
citizens for the benefit OF another and
that this at least was in,violation Of
the spirit of the Constitution.
Arguing that the amendment was
not in conflict with the Constitution.
Senator Reed told the republicans
they would have to vote on the SOL
dier bonus proposition. He said he
understood that the majority pro-
poses TO shut Off discussion Of the
Question by moving to table the
amendment when offered.
I'm saying to you Uhe republicans)
and to those on this side of the cham
Der who do not agree with me-" Sem
ator Reed added, 'that a vote to table
this amendment will be worse than a
because it will be vote against the
soldiers and in favor Of the profiteers
at the same time"
AnSaDsb VIII COECc tOtcs
The bonus bill will be brought to a
vote, Senator Reed continued. adding
that the republicans might as well
harden your hearts, grid up your loins.
stiffin your necks and prepare to meet
the issue"
Democratic leaders said today that
because Of the reported plan of the re-
ment on the table. 1t would not be Of
fered until there had been free discus
sion. If 1t is tabled then or defeated.
1t is the plan Of the democrats to offer
the bonus bill as an amendment to the
tax measure with provision that the
cost Of carrying out its terms should be
paid out of interest on the nations for
eign debt.
Another effort was made today by
republican leaders to get an agree
ment for vote on the tax bill We'd
nesday. but democratic senators OBJ
jected, and the negotiations ended.
Expectations are that the sales tax
fight will consume one day, and with
the other major problems to be dis
posed of, some senators thought q
vote might be delayed until Friday or
Saturday.
To Pass ON Major Proposals.
Returning today to its now more
than-month-old battle over the tax re-
vision bills. the Senate had to dispose
of these major proposals before 1t
could hope to bring the measure to a
final vote:
The corporation capital stock tax,
with an amendment by Senator Lodge
proposing to credit holding companies
for the amount of this tax paid by
their subsidiaries.
Excise taxes. many Of which are pro-
revision plan.
A new method of taxing insurance
companies, other than life
The Smoot manufacturers sales
tax.
The Reed amendment to continue
the excess profits tax with the pro-
ceeds used to put through the i've
way soldier bonus plan.
The Smoot proposal to exempt from
taxation income received by foreign
trade corporations and foreign traders
from business done in China and the
possessions Of the United States.
Other Questions Up.
In addition there was promised q
renewal of the fight over the corpora
tion income tax rate, the nheritance
tax section and several others which
tentatively have been disposed Of
Senators on both sides were agreed
that this constituted formida able
program containing elements which
might bring on prolonged debate, hut
they hoped that the bill could be put
through this week. 1t was the plan
OF the republican leaders to get a
vote by Wednesday or Thursday, at
the latest, and they were prepared to
resume night sessions II necessary.
Senator Penrose of Pennsylvania, in
charge of the tax bill, still Is of the
opinion that Senate and House con-
ferees can reach an agreement within
two or three days, but other ma
jority leaders do not share this op-
timism. as the Senate already has
agreed to several radical revisions of
the bill as 1t passed the House,
There are promises of another hpht
in the Senate il the bill comes out of
conference with the maximum income
surtax rate cut to around 40 per cent.
There have been predictions that such
cut woul dbe made. as House leaders
are somewhat firm in their demand
for the 81 per cent rate agreed upon
by the House.