The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-10-07
POSTAGE INCREASE
BOBS UP AGAIN In
COMMITTEE MEETING
Maximum Surtax Is to Be In
creased From 80 Per Cent
50 so Per Cent.
ESTATE TAX ALSO Is
SCHEDULED FOR RAISE
Propose Repeal Of Taxes on Soda
Water, Cosmetics and Pro-
prietary Medicines.


WASHINGTON. Oct. 0--Republican
Senate leaders in a series Of confer
ences today agreed upon tentative
tax revision program which they be-
lieve win close the principal gap with
IN their party ranks in the Senate and
at the same time prove acceptable to
the republicans in the House OF Repre-
aentatives.
Main points in the program are an
increase in the maximum surtax rate
from 81 percent. to so percent. and
repeal Of the tax on freight. pas
senger and Pullman transportation. In
addition It is proposed to repeal the
$4,000 exemption allowed corporations.
which would mean an additional $50, i
100000 of revenue from corporation
sources. retain the corporation capital
stock to check tho estimate yield $751;
100000 next year. and repeal the vari-
Gus sc-called nuisance taxes such as
those on soda water, cosmetics, pro-
prictary medicines and the like
There also was said to have been a
tentative agreement to increase the
estate taxes SO aa to have q maximum
of 40 Of 50 percent. on estimates III
excess of sJ00,00O,00O. The present
maximum IS rs percent. on estimates
q sio,000.oo0.
Most leaders were understood to-
have favored the committee proposals.
for a fiat tax OF Is percent. on cor
porations incomes, but there was some
discussion of a gradual tax with the
rate 10 percent. on corporations have
ing an income Of $50. 900 or less year
" The question of increased first
class postage rates also was brought
up again, but these and other matters
are To be threshed out at d meeting
of republican members Of the finance
committee, to be called within a day
or two.
In advance OF this meeting. Senator
Lenroot, OF Wisconsin, and Mccormick
Of Illinois, leaders OF the progressive
group. are TO draw up amendments
embodying the proposed changes for
presentation to the committee repub-
Iicans. IT Is the plan 70 have the
amendments presented on the floor as
rommittee proposals with a view Of
expediting action on the tax BILL
In framing their program, the lead
ers considered and rejected the
tofuOOAn manufacturers oAlcS TAX pltil
and also approved the committee pro-
poaal TO repeal the excess profits tax
as az next January I. Active fights
for the sale tax and against repeal
Of the profits tax are promised, how
ever, on the senate floor.
Senators Lenroot and Mccormick
went over the proposed changes in the
bin with treasury experts today and
ST was said later that while the
changes would involve shift Of a
total Or about $500 100000 III taxes.
the total to Be raised under the bin
amended as planned would be ap-
nroximately the same as under the
original measure 49, S24,00oo 600.
The conferences today were rre-
ceded by one between President Hard
ing and Senator Lodge OF Massachu-
setts, the republican Senate leader,
who called at the white house to lay
before the executive the results OF
the conference Of senators from west
crn states which he attended last
might a. the home of Senator Capper.
Republican, Kansas. 1t was under
stood that the President indicated
desire that every effort be made to
smooth out the differences between
republican senators so as to hasten
4assarc Of revenue legislation.
While the republicans were in con-
ference, democratic senators continued
their assault on the committees bill
senator Robinson OF Arkansas. re-
fering "a the meeting Of republican
leaders, declared the pending measure
seemed Ito be dead in the hands of
its friends" and that it was proposed
now 70 bring Ia amendments to meet
~nbstantially an 81 the criticism Of
the bin made by the democrats.
senator simmons of North Carolina,
the ranking democrat on the finance
committee. told the Senate that the
onposition to the measure had been So
pressed. that Chairman penroae Of the
finance committee had found it neces-
sarv to inform tho public that the bin
was only d temporary one When the
committee drew the Bill he said 1t
was stated that the measure was to
IS s,ernanent adding that there was
no taik 81 its Temporary characters
asntl II had been shot % pieces on
the door Of the Senate"