The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-10-30
SENATE MAKES UP
FOR LOST Time ON
REVENUE MEASURE
Bill Apparently Will Be
Passed by Night Of
November 1.
AS PENROSE STATED
Democratic Amendments Go
To Slaughter Like Tin
Soldiers.

week reached home -stretch on the
revenue bill. having only ten COM
mittee amendments and 120 indi-
vidual or compromise amendments
to dispose of by FIR day night.
1t was apparent that Senator PEN
roses prediction of the bills pas
sage by November 1 would be real
lied without resort to the continuous
night sessions which had been ten
tatively agreed upon when flibuster
tactics threatened a tie-up that
would hold Congress in spec al ses-
sion far into chill November. But
the Democrats acceded to the fixing
of several specific periods for votes
on the main controversial amend
mnts, even while they "battled for
the people against millionaires who
elected Hard ng and were getting
their tax burdens reduced"
The Principal Amendments.
Some of the important amend
ments adopted were:
Continuance of the per cent
normal tax rate on $4,000 income and
8 per cent on all over that amount.
Repeal OF the excess profits tax
as of January 1, 1922.
Tax on medicinal liquors Of so
cents a gallon, beer; s1.2O a gallon.
wine; S2.40 a gallon, alcohol; $40
a gallon, whisky withdrawn from
bond.
Inheritance tax Of 80. IS, 40 and
SO per cent on estates Of more than
100000, a comprom Sc amendment
in favor Of the Agricultural bloc"
Three of these amendments were
presented by the Finance Commit
tee. It was conceded that with these
out of the way a great deal of hard
work was put behind. About the
middle of the week the Senate
waded into the corporation tax sec
ton to which Innumerable amend
ments were offered by Democrats,
including Reed, of Missouri; Sim
mons, of South Carolina, and Jones
the soldier bonus bill, which had
been laid aside for the session at the
Presidents request. as an amend
ment, proposing that the funds for
paying the bopus be derived from
taxes on the larger corporations.
The Democrats sought graduated
rates Of increase on corporations
earning above 10 per cent on their
investments, but some Of their pro-
posed amendments were denounced
by Senators Penrose, Smoot, Watson
and other Republicans as not only
unavoidable but FORBIDDEN OF disaster
to the business of the country. DEM
ocrats declared the Republicans were
letting the corporations escape, and
on this point they were nailed by
Senator Lenroot, to-wit:
Il have before me a table from the
Statistical Abstract, showing that be-
fore the war. in 1916, under the
Democratic tariff policy and under
Democratic tax legislation, the cor
porate net income of the country was
$S,765, 900. 900 and that the tax i'm
posed upon that wealth by the Dem
ocratlc party was $4,000, 900. in
round numbers, or 1876 per cent"
Senator Fletcher, Democrat, Of
Florida. interrupted to say that this
country at that time did not have
$4,000, 100000 outstanding govern
ment bonds.
Compare Pre-war Rate.
True, but we were raising then
about 1000. ooO. 0o0," replied the SEN
ator from Wisconsin. THE pending
bill proposes to raise $1,000, 900, 900.
II we had had the same amount OF
money to raise, then the Democratic
party. following that policy. would
not impose a greater tax than Z per
cent upon the corporate income OF the
country, when It Is proposed in the
pending bill to impose a tax Of Is
per cent upon the net income Of every
corporation in the country, less the
$4,000 exemption. and a surtax upon
every stockholder. running up to a
maximum Of 30 per cent. So It comes
with poor grace indeed fos the Dem
ocrats to claim that they are the
ones who favor taxing corporate
wealth and that the Republicans are
endeayoring to free corporate wealth
from such taxation"
Corporations" continued Senator
Lenroot' having an invested cap
ltal OF more than s14, 1000, 900, 900 in
the aggregate, and an average in
vested capital OF ;l,31s,0o0, paid an
excess prof1ts tax OF 9s-100 Of / per
cent. The Democratic amendment
now pending, based upon the same
return, proposes to exempt those
large corporations from any excess
profits tax whatever"
Among Democratic amendments
defeated was one by Senator Tram
NELL, OF Florida, increasing the ex-
emptions on small incomes, Dis
cussion of exemptions under the cor
poration tax consumed the greater
part of Thursday and fingered
chiefly over the question of encour-
aging domestic building and loan
associations.
Defeat Building Loans.
Senators Willis. of Ohio, Calder
OF New York, and others spoke OF
the good that such Organizations
are accomplishing in behalf OF small
home-builders. Senator Smoot OF.
fered an amendment, which he
stated would put such organize.
lions on parity with banks doinr
similar business. He saw no rea
son why bankers in the buildinr
loan business should be taxed and
building loan organizations, doine
the same kind OF business. ex-
empted. In asking adoption Of hi,
amendment he predicted that IL n
were defeated every bank In the
country coming within the scope oi
the law would reorganize under tbs
name Of Domestic Building n oar
Association" In order to escape the
taxes now paid The amendment
was defeated.
Senator sWadsworth offered ar
amendment taxing medicinal beer
wines and whisky withdrawn from
bond. Such Roadway was belne
made at the time that Senator