Evening journal., 1921-11-05
SENATEREJECTS
new SALES TAX
Half of I Per Cent. Levy on
Business Fails by Vote
of 40 TO 25
TO COME UP AGAIN
ON BONUS PROGRAM

WASHINGTON, Nov. 5.-A unani-
nous consent agreement limiting de-
bate on the tax revision bill begin
ming today was reached at O'Clock
this morniag BY the Senate after a
continuous session OF thirteen hours.
An earlier effort to fix a definite
time for 2 final vote on the bill
failed.
The sales tax as a source OF Fed
eral revenue at this time was def
nitely rejected by the Senate but
there was further evidence that il
was the purpose Of Republican con-
gressional leaders to bring it forth
later as means Of raising funds TO
finance the proposed "fve way" plan
for adjusted compensation for for
mer service men.
The majority yesterday againt the
Smoot amendment to the tax revi-
sion bin proposing a business sales
tax Of one-half OF one per cent was
even larger than that last night
against the Smoot one per cent
manufacturers sales tax. The vote
today was as to 25 as compared to
43 to 25 last night.
As was the case with the manu-
facturers tax, the Democrats voted
solidly against the business tax. They
were Joined by % Republicans. three
Of whom-Fernald, of Maine: Good
ing. Of Idaho, and Keyes, OF New
Hampshire. voted for the manufac-
turers' tax. Six Republicans who
did not vote last niEht-Brandegee
Connecticut; Calder, New York;
Dillingham;. Vermont; Hale. Maine;
Harreld. Oklahoma. and johnson,
California, supported the amendment
today.
Three Republicans who supported
the manufacturers tax did not vote
today. They were Edge. New Jersey:
Ernst. Kentucky and Warren. wy
omlng. Counting senators who were
paired, il was estimated that the
maximum vote which would have
been cast for the sales tax was "a.
or some six less than il had been est
imated would support it. Some SEN
ators thought that the debate re-
suited in the loss OF some votes.
The Senate continued considera-
tion OF the tax bill at a session last
night but with the soldier bonus
and other Important amendments
yet to be disposed OF. Republican
leaders abandoned hope for passage
OF the bill this week They sought
TO obtain unanimous consent for a
final vote at D. m. Tuesday with
debate limited after D. m. Mon
day but the plan fell through after
some debate.
Several senator's who want to &C
home 20 vote in local elections OBJ
jected TO a vote on Tuesday and
asked that some hour on Wednesds,
be fixed There seemed prospects
OF an agreement on this but Senator
Jones. Democrat. New Mexico. pro-
testing against the limiting Of de-
bate, objected to the agreement as
drafted.
Urging his sales tax amendment,
Senator Smoot told the Senate since
a sales tax was TO be adopted in con-
nection with the soldier bonus, he
thought Il would be a wise plan to
put II into effect now, so as to de
termine what rate would be neces-
sary to yield the money needed.
Senator Reed. Democrat, Mis-
souri,, said he saw no reason for de-
laying enactment of the bonus leg
islation, and IN .-is connection paid
his respects TO Chairman Fordney
of the House ways and means com.
mittee, and other House leaders
who he said, were undertaking q
dictate to the Senate what 1t shoul,
or should not do.
An unsuccessful effort was mad
by Senator Townsend. Repuh
lican. Michigan, to have the thre
per cent. tax on automobile truck
and wagons repealed The Senat
voted SO to p against reconsidera
ton OF the committee amendmen
proposing 10 continue this ta'