The New York herald., 1921-10-06
SALES PLAN In DOCBT
Mondell Strong Against 1t
as Only Shifting Burden,
Not Giving Relief.
FARM BLOC rs ASSERTIvE
Democrats File Minority Re-
ports Opposing Bill Pre-
sented by PenrOse.
Special Despatch to THE New YoRK HnaALD.
New York Herald Bureau,
4t Washington. ID. c., Oct. 8.

new YORK Herald Bureau,
Washington, ID. G., Oct. 8.
President Harding and the Republi-
can leaders Of the Senate and House
40 longer deny that the Administra-
tion's tax revision programme is in
peril. They held series of important
conferences to-day in an effort to
reach compromise that will COM
mand sufficient Republican votes to
insure enactment of the legislation at
this session.
President Harding conferred with
Senator Lodge (Mass.), Representative
Mondell (Wyo). Speaker Gillett and
others on all phases Of the tax bill.
The President kept an open mind, sid
Ing with none Of the factions. but urg-
ing an agreement.
The agricultural bloc, headed by
Senators Mccormick {Ill.), Lenroot
(Wis.) and Capper (Kan.). which is
opposing the bill as reported by the
Senate Finance Committee. held
meeting tonight, and Senator Lodge
was present by invitation.
Republicans Optimistic.
The result Of all the conferences at
the White House and the Capitol was
feeling Of optimism In Republican cir
cles. Although the bill as it stands has
not the support of many more than
twenty Senators, 1t Is believed a series
of amendments will be agreed on by the
Republicans that will prevent the threat
ened coalition between the Republicans
of the agricultural bloc and the Demo-
Gratis for the purpose of rewriting the
bill.
Senator Penrose (Pa.), chairman of
the Finance Committee, has admitted
all along that the bill as 1t stands in
the Senate. must be amended before 1t
can be passed, but he has been unable
to hnd amendments that meet with gen.
eral approval.
The sales tax proposed by Senator
Emoot (Utah) as an amendment to- the
bill continues to gain ground, but the
necessary votes to insure its adoption
are not yet In, sight unless it's advo-
Gates should accept the support Of the.
Democrats. but 1t is pretty well under
stood that although the Democrats
might vote to insert the sales tax in
the measure. they probably would vote
against the bill as a whole on It's final
passage and their strength added to that
Of the opponents of the sales tax prob
ably would prevent passage.
Representative Mondell upon leaving
the White House. issued a statement in
which he said with much emphasis that
the House would never agree to the
sales tax.
Opposed tn Shifting Taxes.
"The House passed the tax BILL" said
Mr. Mondell. ION the theory that there
would be a lifting. not shifting of
taxes. Consequently the House bill is
a repeal bill and with the exception Of
the increased corporation tax does not
provide any new taxes. Regardless OF
whether the sales tax might be proper
to raise funds for specific purpose, it
does not tit In with our programme to
lift tax burdens
Minority reports Of the Penrose bill
were filed in the Senate to-day by the
Democrats OF the Finance Committee
and by Senator La Toilette.
THE committee has failed to provide
for the simplification and equalization of
the income and corporation taxes and
the repeal OF the multitude of excises
which are a constant annoyance to the
public" says the Democratic report,
but has proceeded to reduce rates and
repeal taxes In way that unbalances
the whole system and relieves the corr
porations and ultra rich Of hundreds OF
millions of taxes. most of which are
shifted to the shoulders OF the masses"
Senator La Toilette sided in large
measure with the Democrats, but he did
not agree with the remedies proposed by
the Democrats to improve the existing