Evening star., 1921-11-24
PRESIDENT SIGNS
TAX REVISION BILL
Senators Condemn Measure,
But Enact It Because of
Good Features.

Within a few hours after the Sen
ate adopted the conference report on
the tax revision, called by some SEN
ators a transitory measure, President
Harding affixed his signature yester-
day. making it law.
A number Of senators on both sides
Of the chamber pointed out that the
American people were not satisfied
with the law. This would indicate
than an early revision of this measure
will be undertaken. Several pointed
out. that they voted for the measure,
although NOT satisfied with it, be-
cause its good features outnumbered
its bad ones.
While the repeal of the excess profits
tax and the changes in corporation in
come tax and individual surtax rate
also becomes effective on that date.
taxpayers will not get the benefit of
the changes until they pay their tax
es In the early part of 1928 on income
Of the calandar year 1922. The in
qividual taxpayer will get the bene-
At Of increased exemptions applying
lies with moderate incomes on their
taxes paid in 1922 on 1921 income.
Repeats Excess Profits Tax.
The chief features Of the new law
are substitution of a 12h per cent
fiat corporation income tax for the
excess profits tax and the present nor
NAL tax of 10 per cent, retention of
OF present normal taxes on individual
incomes, but a decrease in surtax
rates. the new maximum being SO per
cent instead of IS, repeal of a num-
Der OF miscellaneous taxes and impo-
sition OF some new manufacturers
tax.
The law repeals the war profits and
excess profits taxes, transportation and
insurance taxes, taxes on soft drinks,
ice cream and similar articles; cigars
ana tobacco. admissions and dies, re-
duces individual taxes all along the line
ana increases the corporation income tax
from ~ to l2k per cent.
In the four hours of debate which
preceded the Senate vote the bill re-
celveo little OF commendation and much
condemnation. Every senator who
spoke-and there were nearly a dozen
mas mas, some complaint to make, while sew
era! Sharply criticised the bill as a
whole. Senator Calder, republican. New
York, declared 1t would be "a disap-
pointment to the people Of this coun-
ny, and Senator Smoot, republican.
Utah. said "the people from one end of
fed with the BILL"
smoot Predicts Amendment.
Senator Smoot declared that he
thought in 1922 the bill would .be
amended-and materially amended''-be
cause Of its discriminate tory" taxes and
the high surtaxes.
Senate were assailed by Senator
Hitchcock. democrat. Nebraska. and
others who asserted that they repre-
scented in their negotiations with the
mouse managers not the sentiment of
the majority of the Senate. but only
that OF the dominant element" of the
republicans in the Senate.
Senator Walsh, democrat, Massachu-
setts. 1nVeighed against system un-
der which, he said, managers of the
House and Senate, meeting in secret
without their individual votes going
on record. could overturn the express
ed will of either branch of the Con-
gress. He warned that If this system
was continued there would be a revo-
luton in the country. Other senator's
on both sides disagreed as to the re-
suit pictured. but agreed that the
system was faulty.
Explaining that he would vote for
the bill because he believed some of
its administrative features were an
Improvement over some of those in
existing law. Senator Smoot said he
agreed with many of the criticisms
them, because some We're not made in
good faith"
Same Baby Dressed in Pink.
Turning to the democratic side, he
said:
IT'S the same baby. dressed in pink
instead Of red" He was referring to
the present tax law which was spon-
sored by the democrats.
The surrender by the Senate con-
ferees on the Senate amendment pro-
posing an increased tax on whisky
was criticised by several senators.
particularly Willis, republican. Ohio.
and Calder, who said the conferees,
in aareeing to the original House
provisions had thrown away $780,
100000 in needed revenues"
Declaring that the bill was unsatis-
factory to many republican leaders
because it carried the so per cent
maximum surtax rate, Senator Jones,
democrat. New Mexico, said it was the
purpose of the majority managers to
keep that tax revision until they
could bring relief to men with great
incomes" He also assailed the con-
ferees for writing in provision limit
ing to 12h per cent the tax rate on
gain from the sales by individuals of
capital assets. declaring this would
enable taxpayers receiving large in
comes to escape the surtax.