Every evening, Wilmington daily commercial., 1921-10-01
SHOOTS SALES TAX
PLAN IS FINDING
FAVOR IN SENATE
Surtax Reduction and Retention
Of Transportation Levy,
However, Are Opposed.
PROFITS way BE FREED
By Associated press % sve-y Evsninr

BY Associated Press % Ever Fvenfnr
Washington. Oct. la grow nw
sentiment IN the senate in favor -
Senator Smoofs plan Tor "a m1nnffn-
turers' sales tax as substitute f9r
the many miscellaneous war ioges
was claimed today BY proponents n
such a tax. They predicted that me
more senators studied tho pending
revenue measure. the more they would
come % favor the sales levy.
Republican leaders today had not
made a canvass Of The maj jority ncm-
bership and were without accurate in
formation as to the strength ~ ad-
Vocates Of this form Of taxation Many
senators on both sides were known 10
be giving careful consideration 10 me
proposal, but majority were ap-
parently Withholding final Judgment
until after hearing detailed expiana-
ton Of the plan which has been prom
ised by Senator Smoot on Monday or
Tuesday.
Features OF the committee I'm
against which the greatest Opposition
appears 10 have developed thus far
are those proposing retention of fha
transportation taxes and reduction -
the maximum sur-tax rate of % per
cent. Republicans iu the agricultural
bloc have joined Democrats in The
fight on the former and a number n
them have stated privately their op-
position TO the latter.
The sur-tax section has drawn much
Of the Democratic fire to date. ana
Ectice has been given from that "a.
Of the Senate OF a determined nehf 10
be made against what is described a.
plan TO relieve the rich AZ the exc
pense Of the masses.
Members of The finance commltfee
say they are not welded 70 the trans
portauCn tax. Senator Perro-o has
explained that the committee had 10
provide sources of revenue and thar
tne retention Of this tax. or the sub
stitution OF some other tax. 81 mere
shutting OF the cards"
a canvass Of the Republican een-
ators by leaders IS said 10 have show,
an overwhelming majority IN favor
OF repeal Of the excess profits FAX
This is not opposed by the Democrats
generally. provided some other means
IS found Of obtaining substantially tina
same revenue from the corporatioue.
senator Walsh, OF Massachusetts a
democratic member II the auarr.
committe ehas proposed in lieu of the
committee rate OF IS per cent on COR
poration income. a sliding scale az
rates with ta5l OF 12M per cent on
the first 100000 Of income. r5 mar
cent on that from 100000 10 seoo
wv ~ per cent on that from $780,
o0o 10 S5Oe 600 and IS per cent on al
ever S500,000.
substitute excess profits tax offered
by Senator King, Democrat, r-tah.
provides for levy Of ten por cent
on the income OF every corporation n
such income is in excess -of 20 ner
cent OF the usual deductions allowed
corpora tions.
Otner amendments by Mr.. King pro-
posed repeal of the TRANSPORTATION
taxes; levy OF four cents "a gallon on.
cereal; still and other soft drinks
instead OF cents as proposed by the
committee and repeal OF the s.. 600 ex-
emption allowed corporations.
StIl other amendments by Senator
King propose elimination Of Dro,i-
slons under which corporations would
De allowed deductions for reasonable
wear and tear on property used in
trade or business md for amortization
OF such part Of the cost Of rnanufac.
turing facilities or OF vessels ACQUIRED
Tor the production or TRANSFORMATION
or articles cont .bUting to the prosecu-
uon Of the war against the German
government as has been borne bv fha
tax payer.
senator King also would have strics-
en- out the section allowing in the casa
OF mines, oil and gas wells, other ma
-ural deposits and timber. q reasonal,i.
allowance for depletion and for a.
probation Of improvements. accord
ing TO the peculiar conditions i'm each
case, based upon cost. including cost
II development not otherwise deducted