Arizona republican., 1921-10-08
Senate Leaders Finally. Accept
 Amend1nentsTO House Tax Bill
Repeal of Transportation Taxes Among Important Changes in Bill Accepted by Party Leaders.
Republican A. P. Leased wireJ

WASHINGTON, Oct. Amend ments to the pending tax revision bill agreed to by Republican leaders in the senate were made public today formally in advance of their consid- eration tomorrow by majority mem bers of the finance committee. They would provide for:
 A maximum Surtax of 50 per cent on that part of incomes in excess of S200,000, in lieu of the committee plan for 32 per cent maximum on the excess over $66,000.
 Repeal of the express, freight and passenger and Pullman transporta- ton taxes, effective at the passage of the bill.
 An increase from s2.20 a gallon to S4 gallon in the tax on distilled spirits produced, imported or with drawn from bond for use for indus trial, medicinal or other purposes.
 A graduated increase in the estate tax rates to a maximum of 50 per cent of the excess over S10O, 900, 900 in lieu of the present maximum of 25 per cent over S10.000,000.
 Eliminate Hotel Tax
 Repeal of the excises .on sport goods, chewing gum, perfumes, es- sences, tooth and mouth washes and pastes, dentifrices, toilet powders and soap and soap powders and other miscellaneous taxes sufficient to make up a cut of $37,000,000 an- nually.
 Elimination of the proposed tax on hotel accommodations.
 Reduction in the tax on candy to three per cent with elimination of the committee proposal for 10 per cent tax on candy selling at whole ,1. fe@~-
 The other excise provisions of the senate bill would stand. including repeal of the excess profits tax next Jan 1, flat tax of 15 per cent or corporation incomes and increased exemptions for heads of families and on account of dependents.
 While repeal of the $2, 900 exemp- ton allowed corporations is not in cluded in the program as announced leaders were endeavoring tonight te work out a plan which would proteci small corporations and at the same time remove the exemption from meeting with the most favor was tt allow the exemption in the case ol corporations having net incomes les. 1 than s20,000 or $S5.O00.
 Opposition to the proposed in crease in the surtax rates developed 1 today among a group of senator. I from eastern states and they wer, understood to be preparing to wag' an active fight against a 50 per cen maximum. There also was some op 1 position among these senators to in l crease state tax rates.
 i House Leaders Oppose Increase House leaders also declared against increasing the surtax rat 1,o ma vi fyV1ar fixed in the bill as it passed tn house. Representative Mondell o Wyoming, the Republican leader an, | Chairman FNordney of the ways an, means committee, expressed them selves very frankly on this subjec | before going into conference witt Chairman Penrose, of the senate fl 1 nance committed, to discuss tn changes as agreed to by the senat l leaders.
 The house." said Representativ 1 Mondell determined upon a 32 pc cent rate after full and careful con sideration in the committee, in con ference and on the floor. The vot was overwhelming and know of n reason now for any change in tha decision. The view of the house wa 1 that this bill was to remove the ex l traordinary emergency war taxes an | after deliberate consideration tn | house decided a 32 per cent rate wa l a reasonable peace-time tax.
 Representative Fordney also de | clared that he favored the house fig ure, but added that he was delight
 ed to see the senate bill finally bein
 brought around very closely to th
 form of the original house measure.
 Neither he nor MT. Mondeil ha
 T
 ments and declined to discuss ther
 in detail but Mr. Mondell did sa
 that he saw no reason now for tn
 house to change its opinion on tn
 121s per cent corporation income ta
 rate He added. however, that man
 of these matters would have to
 worked out in conference.