Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-10-20
COMPROMISE TAX BILL
IS AsSA|LED IN SENATE
Measure Characterized as the
Worst Ever Presented
10 Congress.
,NENrLlcAnLE SAYS UNDERWOOD
Democratic Leader Charges Hcpub-
licnns with unfnIrncsS Ia Nmcri-
can Pc"plc-tinbamnn Secs Taxes
Increased, IW'tcad OF Reduced
tl5y Associated rrcss.1

WASHINGTON. Oct. 19.--The COM
promise tax revision bill was as
sailed today in the Senate by both
Democrats and Republicans
Senator Underwood of Alabama.
the Democratic leader. characterized
the measure as the worst ever pre-
Sentcd TO Congress. No one under
stood IL, he declared. except few
Treasury experts who drew il. and
lie predicted that. If the bill be-
came law, the courts would be sew
cral years In Interpreting. IL.
Charging the Republicans with n
failure Ia be candid with the Ameri-
can people. the Democratic leader
said they were trying to have it 20
out that taxes were to be reduced
when. as u matter of fact. they
iwoul8 be increased through the
operation of the administrative nro-
visions of the revenue measure and
the proposed American va1uatio
plan IN the tariff bill.
Pays Respects to Committee Hiil.
Senator Moses. Republican. New
Hampshire, paid his respects to the
committee bill ana also TO the
amendments sponsored by the agri-
cultural bloc. which he termed the
'Ken Cap-Kiar." a play on the
names Of Senators Kenyon. Iowa,
and CapDcr, OF Kansas. leaders in
liz pEtt. ilNplSIHS Nlt sNiiippN
facturcrs sales tax, Senator Moses
declared the committee bill plainly
was drawn under the inspiring in
SEPARATION or the slogan soak the
rich"
Supreme Court decisions in tax
tfSses got into the debate, Senator
Nelson, Republican. Minnesota. COM
planning about opinions holding
state and municipal bonds exempt
frA, tpNAtinn md Senator
Watson. Democrat. Georgia, char
actorizing as perfectly rotten" the
recent decision that stock dividends
could not be taxed.
Vote Down nlmcut.
Getting down 10 cases. the SEN
ate. after q technical decision, voted
down. Sc TO u, n committee amend
ment under which Treasury experts
had figured the government would
receive taxes on aDount SO per cent
Of the earnings OF close" corpora
lions accumulated prior to March ].
1919 Senators simmons. OF North
Carolina. and Reed. Of Missouri.
Democrat. ana Kellogg. Republican.
Minnesota. led the fight against the
amendment
Senator King. Democrat, Of Utah.
introduced an amendment which
would Authorize the President to in
yite the different states 10 appoint
representatives to confer with repre-
sentativcs to he appointed by him 10
discuss cooperation between the
Federal and State governments in the
levyinE of taxes and, particularly. TO
recommend means for the elimination
of conflict between Federal and State
inheritance taxes.
HcneMs Fight Against Provisions.
Senator La Toilette, Republican. of
Wisconsin,. renewed his fight against
provisions OF tho bill. which would
exempt from taxation that part OF
the income of foreign traders and
foreign trade corporations derived
from sources outside the United
states. He declared that the effect
would he to invite American CAPITAL
to seek Investments abroad TO escape
taxation. instead of remaining at
home TO aid in developing the country
and relieving the Industrial dcpres
sion.
Senator MoCumbcr. Republican, of
North Dakota, again defended the
provisions on bohlf Of the Finance
Committee. contendlng that they were
necessary III order that American
on an equal footing with foreign
corporations.
Senator La Toilette denied that
British or foreign companies were
exempted At home on the portion of
their income derived from sources
outside Of their home countries.
The fight over these SECTIONS VIII
be resumed TOMORROW.