The Washington herald., 1921-09-30
TAX MEASURE
FACEA1TACKS
BYOPPOSITION
Amendments Demanded
BY Democrats and
Dissenters.
SMoOT PROPOSITION
is GAINING SUPPORT
Agricultural Bloc Seems
Disinclined Toward
Compromise.

Opposition to numerous features Of
the pending tax bill in which Re
publican dissatisfaction is an i'm
portant factor, brought the measure
to a critical state in the Senate yes
terday., Indications are that radical
AMENDMENTS will be forced by the Re-
publican dissenters and their Demo-
cratic allies.
Republican leaders. favorable to the
measure As II now stands, admitted
that some changes must be made.
Conferences were in progress with a
view 70 heading of the attacks to
be made by Senators Of the agricul-
tural bloc" against the repeal of the
excess profits tax and the reduction
Of the higher surfaces. The leaders
were reported to. have offered to agree
to the complete repeal OF transporta-
ton taxes IL the agricultural group
would make concessions. The agri-
cultural Senators. who are planning
to hold a meeting today, do not apt
pear disposed to compromise. betev-
ing that they are certain OF obtaining
repeal Of the transportation taxes and
are likely to put through Sther i'm
portant amendments. II
Want Repeal Retrsaetive.
Administration spolsSmAn desire to
make the repeal Of ,4he excess profits
tax retroactive instead Of effective on
income Of the caJepdar year 1872. but
members Of tbs agricultural group do
not take kindly to the suggestion.
Because q the general dissatisfac-
ton with yAf3ous features of the bill.
the moveA1<nt for the Smoot per cent
manufacturers sales tax. which ts de-
signed ITO csubstitute both for the ex-
cess profits tax and obnoxious mis-
cellsheous taxes. seems to be gaining
SOME strength. Senator Smoot an
nounced that he would offer a series
Of amendments embbodying his pro-
gram tomorrow and at that time will
make a statement in support OF what
he proposes.
Senator Simmons. Of North Caro-
lima. rahking Democrat on the
Finance COMMITTEES. offered q series
OF asnendnents In the Senate
striking at important features OF the
measure. Senttor Simmons will make
a .speechL In the Senate today in
support of the Democratic program
which, includes his amendments and
also amendments reducing normal
taxes and providing for graduated
income. taxes already Of
fered by Senator's Walsh. Of Massa-
and Gerry. of Rhode Island.
simmons' Amendment..
Amendments offered by Senator
Simmons included the following:
Adoption OF a scale OF surtax rates
on Individual incomes with a maximum
Of So per cent instead OF 65 per cent
in the present Law and 80 per cent in
the pending bill.
Retention Of the capital stock tax
which is repealed in the committee
bel
Repeal of the tax on freight. pas
senger and Pullman transportation.
January i, 1922.
Repeal Of the $1,000 exemption On
incomes.
Elimination of the exemptions for
individuals and dependents rom
persons with incomes in eycess VI
SCI. 1000.
The Senate failed to make rrch
headway in considering the tax bill
owing to the fight made by Senator
La Foilette, Of Wisconsin. against the,
provisions defining foreign traders
and foreign trade corporations.
Senator La Toilette novel e.
strike these provisions. the effect
Of which. in conjunction with Other
sections. is to permit exemption
nom taxation of income derived
from sources in foreign countries.
AI he ;pdfx-idnaI /
ton obtains so per cent of his or
it's gross income from without the
United States. and provided 80 per
cent Of the gross income is de.
rived from conduct of a TRACE OF
a business outside of the country.
Action on the La Follett, motion
was deferred.
La Toilette Attacks Bill.
Senator La Toilette attacked the
,ill Thursday as a crime against
he American people" designed to
allow wealthy persons to escape
.axation, while the poor bear the
,uYden of government"
"The plain purpose of the provi-
lions of this BILL" the Senator
.harged, "fs to permit individuals
md corporations of great wealth in
his country to escape taxation by
their Investments and
them abroad"
La Toilette said the result Of this
would be to lead the nation into an
,ther war.
1t is now clear, as well. that the
.ariff bill cannot become law until
next year. Thirty experts Of the
Treasury have been assigned to study
he proposed new system OF "Ameri-
AN valuation" and their first report
will not be ready this year. The
Senate will not act on the bill until
- studios boys haep cou1nlefed