Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1921-09-28
MINORITY WILL
URGE SWEEPING
ALTERATIONS IN
SENATE'SPLANS
Democrats Intimate Willing
ness to Support Manufac-
turers' Sales Taxes
EXPECT BITTER FIGHT
Class Determinations" Are
Assailed by Simmons. in
Outlining Party View

WASHINGTON. Sept. 27.-Tax re-
vision legislation was put under way
today in the senate with indications
of bitter fight to come over the
more important provisions OF the
measure reported by the finance COM
mittee.
Notice was given by Senator Sim
mons. North Carolina, ranking minor
Ity member of the committee. that
sweeping and radical amendments
would be offered by the Democrats
and he added that if the sponsor for
the manufacturers sales tax would
accept those amendments. serious con
sideration would be given such
sales tax as part of the Democratic
scheme, provided such a levy should
prove necessary to raise the needed
revenue
Objections to specific sections came
from the Republicans as well as the
Democratic side, and Senator Len
root OF Wisconsin. Republican. pro-
posed amendments to the income sur
tax provision under which existing
rates would be continued up to 80
per cent on incomes exceeding $780,
400, with an alternate proposal OF a
so per. cent levy on incomes of from
100000 TO 100000. and a 60 per
cent rate on those above $500. 900.
Little Progress Made
By taking the bill up under an
agreement to accept uncontested com
mittee amendments to the original
house measure. the senate made prog
ress on proposed changes to some ad-
ministrative features. None of the
levy provisions was passed upon. how
ever. objections being made
Amendments to be offered bv the
Democrats, Senator Simmons said.
would be designed to produce some
thing like uniformity of taxation be-
tween the defendant classes and
groups Of taxpayers. and will remedy
some OF the class determinations
which reek throughout the bill"
There was some discussion today
of tax on the undivided profits OF
corporations held so as to avoid paw
ment of revenue to the government
Senator SmOot, Republican. Utah
said he hoDed no effort would be made
to pass law which would force cor
rorations TO distribute their profits
as dividends as this would tend to
prevent them from laying bv Suffi-
cieut surplus to meet slump.
Senators Simmons and Kins. Dem
ocrats, Utah. said there would he no
decision to enact such a law. but that
some means should be found to pre-
vent corporations from evadins the
payment of taxes. Senator SmoOt
said he did not think there would BE-
many concerns which would make
enough in the next several wears To
have anv considerable surplus left
after paying regular dividends.
Pass Many Provisions
Important provisions of the bill
passed over today for future consid-
Grafton. included those reducing the
surtax rates to 80 per cent; increa>-
ing the income tax on corporations
from 10 to Is per cent: taxing life
insurance companies: granting addi-
fional exemptions to heads of families
having incomes of $4,000 or less. and
on account of dependents: defining
foreign trade and foreign trrde cor
porations: eXempting from the cor
poration tax labor. agricultural or
horticultural organizations. mutual
savings banks not having capital
(CONTINITED ON PAGE TwO0