Daily Kennebec journal., 1921-10-11
Senate Committee
Approves G. 0. P. Plan
Of Tax Revision

Washington, Oct. 10-The Repub-
lican comor omise tax revision pro-
gram was approved today by ma
jority OF the Republican members
of the Senate finance committee. Re
ports from the committee room were
that the vote was five to four, with
one opponent, Senator Mclean of
Connecticut, absent.
Th first test vote on the compro-
mise, which was an cut growth of d
threatened revolt against the origi-
nal bin by Republican senators in
the agricultural bloc was said to
have been five to four against. This
vote was taken Saturday and those
listed in opposition were Chairman
Penrose and Senators McCumbe Der,
Smoot, Mclean and Dillingham;.
Senator Calder was absent.
Chairman Penrose was reported to
have cast the deciding vote for the
program today, with Senator Calder
voting with the opposition.
Senator Penrose will report the
amendments to the Senate as ma jor-
ity proposals and he predicted today
they would command practically the
united support of the Republican. It
is understood, however, that some of
the committee members opposing
them will continue their fight on the
floor and will be supported by a
number of senator's from the eastern
states.
Differences among the Republican n
committeeman were reported to have
been one reason for the andonment
of plan, discussed before the de-
cision to call in the Democratic
members of the committee with a
view to having the amendments re-
ported out by vote Of the entire
membership.
After disposition of the compro-
mise program was made. the Repub-
licans made some further revisions
in the bill. The approved amend
ments, as officially described today,
would provide for:
A graduated increase from the
House income sur tax maximum of
81 per cent. on see, 600 to q maximum
of % per cent. on 100000. effective
next January |.
Repeal of the tax on freight pas
senger pullman, oil by pipe line. ex-
press and parcel post transportation
also effective next January !.
A graduated increase in estate
rates. from the existing maximum
OF % per cent. on SO ,OOO. 900 to a
maximum of 50 per cent. on 500.
o'oooo also effective next January !.
fiat rate of S64O @. gallon on
distilled spirits but with provision
for rebate of Sf2O a gallon when
1t can be shown to the satisfaction
ol the commissioner of internal
revenue that the spirits are used for
industrial or medicinal purposes.
Repeal of the excise tnxes on
sportln goods, furs, chewing gum.
electric fans, thermos bottles. smok-
ing and hunting equipment, toilet
soaps and powders and perfumes and
cosmetics.
Repcal Of the five per cent fax
on the licensing or leasing Of motion
picture films.
Retention of the House pronos.l
lof a hat tax of three per cent. on
candy with elimination of the Senate
committee proposal for 10 per cent.
TAX on candy selling at wholesale
1or more than 40 cents a pound.
Retention of the House provision
Tor reduction from 10 per cent. ia
hVe per cent. in the tax on works of
art. Elimination of the Senate com
mlttee provisions for taxes on nboto-
siaphlc apparatus and accessories,
hotei rooms in excess of certain
prices and Office furniture made of
imported hardwoods. These were
me only new taxes proposed by the
Senate committee.