Arizona republican., 1921-09-28
MIN OR| TY WILL OFFER RADICAL AMENDMENTS TO HOUSE TAX BILL
Democrats To Consider Manufacturers Sales Tax As Part of Scheme Pro- vided Levy Necessary To Needed Revenue
IRepuh;Ican A. P. Leased wIre]

WASHINGTON, Sept. 27.-Tax re-. vision was put under way today in the senate with indications of a bit- ter fight to come over the more i'm portant provisions of the measure re- ported by the finance committee.
 Notice was given by Senator Sim mons, North Carolina, ranking min ority member of the committee, that sweeping and radical amendments" would be offered by the Democrats and he added that if the sponsor of the manufacturers sales tax would accept those amendments, serious consideration would be given such a sales tax as a part of the democratic schemes provided such a levy should prove necessary to raise the needed revenue.
 Objections to specific sections came from the Republicans as well as from the democratic side and Senator Lem root of Wisconsin, Republican, pro- posed amendments to the income slir- tax provision under which existing rates would be continued up to 50 per cent on incomes exceeding S100,000 with an alternate proposal of a 90 per cent levy on incomes of from $100,000 to $300,000 and 50 per cent rate on those above $300,000.
 By taking the bill up under an dkltSIHtIL tO cCIEpl u4lCOtlltSlttl committee amendments to the orig ina1 house measure, the senate made progress on proposed changes to some administrative features None of the levy provisions was passed upon, however, objections being made.
 Amendments to be offered by the Democrats. Senator Simmons said, would be designed to produce some think like uniformity of taxation" be- tween the defendant classes and groups of taxpayers. and will remedy some of the. class observation-disclosures which teek throughout the bill.''
 There was some discussion today of a tax on the undivided profits of corporations held so as to avoid payment of revenue to the govern ment. Senator Smoot, republican, Utah, said he hoped no effort would be made to pass a law which would force corporations to distribute their profits as dividends as this would tend to prevent them from laying by sufficient surplus to meet a slump.
 Senators Simmons and King, Demo- crat, Utah, said there would be no disposition to enact such a law, but that some means should be found to prevent corporations from evading the payment of taxes. Senator Smoot said he did not think there would be many concerns which would make enough in the next several years to have any considerable sur- plus left after paying regular divi- dends.
 Important provisions of the bill passed over today for future consid- eration included those reducing the surtax rates to 32 per cent; increas- ing the income tax on corporations from 10 to 15 per cent; taxing life insurance companies; granting addi- tional exemptions to heads of fami- lies having incomes of s5,000 or les. and on account of dependents; de fining foreign trade and foreigr trade corporations; exempting from the corporation tax labor. agricul' tural or horticultural organizations mutual savings banks not having ; capital stock represented by shares building loans substantially all th' business of which is confined t making loans to members and thu section striking out the house pro sal making the salaries of the presi dent and the judges of the fedora courts exempt from taxation.
 Among amendments offered to tn bill was one by Senator McNary republican Of Oregon, proposing t reduce the tax on express package from one cent to one half cen for each twenty cents or fraction o the amount paid.