The Washington herald., 1921-08-21
Democrats With G. O. P.
Aid Fail to Defeat Cut
In Surtaxes.
NINE REPUBLICANS
VOTE IN NEGATIVE
Committee Accepts 81
Amendments, Making
New Reductions.

With nine Republicans voting In
the negative. the House yesterday
passed the Fordney tax bill by
vote Of 274 TO I25. with one recorded
as present. Three Democrats voted
for the bill.
Fifty Republicans, however. had
previously Joined with the Demo
Gratis in support of a motion to re-
commit the bill with instructions
to the Ways and Means Committee
to eliminate the reduction in surtaN
rates on incomes above S6s.Ooo. This
motion met defeat by a vote OF Ies
to 230. Only one Democrat voted
against the motion.
There was no test OF strength on
the question of the repeal OF the
excess Profits tax. the Democratic
leaders deciding they could win
more Republican support by limit
ing the motion TO recommit 20 the
question OF the reduction OF the sur
taxes ranging from % TO 6S per
cent on large incomes
Cockrsn's ResoIutIon Tabled
Just before the two final roll calls
were taken Representative Cochran.
TO obtain consideration of a resolu-
tion under the guise OF a question
Of the highest privilege. The reso-
luton declared IL to be the opinion
Of the House that President Hard
ing acted in violation OF the COnsti-
tuition when he addressed the Sen
ate. to the exclusion Of the House.
on the question of the soldier bonus
legislation on July IL. The resolu-
ton was tabled on a roll call by
a vote Of 2SS to los on the motion
of Republican Leader Mondell.
The bill now goes to the Sepate.
where the tentative plans are 60
give that consideration ahead OF the
tariff measure. The Senate Finance
Committee probably will take up
the tax bill week after next with
a view to having IL ready TO report
to the Senate by the time Congress
rseonvenes on September Il after
Further Cut Of x2s.oooy 900.
The net result OF changes made
on the floor. upon the recommenda-
tion Of the ways and Means Com
mittee. was q further reduction or
$4,000. 600 in revenue in comparison
with the yield Of the present law.
The total e---pated reduction after
the repeal OF the excess prohts tax
has become effective will be sSlS.-
OO0. 900. This will mean a yield after
1922 Of Ss.652.OOo.O00, as against
s357O. 600. 600 from the present law
The yield during the present nscsl
year will be about SS, $50. 100000.
No opportunity was furnished for
vote on the question Of making
the income tax changes retroactive
on income Of the calendar year 1871
As the bill now stands. income tax
changes. including the repeal OF the
excess profits tax and the reduction
Of higher surtaNes. become effective
on January l. 1922. Most OF thr
changes in miscellaneous taxes are
! effective either upon the enactment
Of the bill or on January /. lsE2-
Opposed by Nine Republicans.
The nine Republicans voting
against the hill on the final roll call
were Representatives Michaelson. OF
Illinois; Beck. LRmpert, J. NJ. Mel
son and Voigt. Of Wisconsin: Keller
ard Clague, of Minnesota; Sinclair,
of North Dakota and Woodruff OF
Michigan.
The Democrats who voted for the
bill were. Representatives DUprs
and Lazaro. OF Louisiana, and Camp
bell. of Pennsylvania.
One of the important amendments
proposed by the Ways and Means
Committee failed of adoption be
cause consideration of the bill was
ended promptly at ; O'clock under
the terms of the special rule. This
was the amendment providing foi
the appointment OF a commission
consisting Of three Senators, three
Representatives and three members
appointed by the President to repre-
sent the public. to investigate 1ces-
tions relative to tax exempt lcuu-
ties. and with respect to the prC posec
tax on expenditures and other sfsni-
lar matters. The amendmevt wss
under consideration when tie v-an
called.
Nearly thirty amendment vsne
adopted yesterday. AmorE them
was one repealing the tax on SPORT
ing goods. so far as certeIR 'sfticies
are concerned. Those eNeIapt from
the tax include haseballs ba sisete
balls. footballs. skates. skgss, TO
boggans. snow shoes, and uniforms
and equipment other sporttns
goods, including golf ana tennis
equipment, will have a tax OF per
rent instead of the present 10 pes
cent manufacturers tax
4 number OF amendment. piacing
fire and marine insuranys conpSnies
life insurance companies, weretuAlIn
on the same basis OF taxation az re
insurance companies. were adopted
NJ rz Dsn I-nraoCae