Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-10-11
COMPROMISE TAX
BILL Up IN SENATE
Proponents Of Revised Meas
ure Hope to Muster Requisite
Number of Votes
NEW OPPOSITION DEVELOPS
BY the Associated Press

Washington. Oct 1l.-Thc tax Dill
was back today on the Senate Calrn-
dnr, with its sponsors ready TO propose
elimination of some and radical revision
Of others Of its features which have
been the ohjcctives Of bitter opposition
from both sides Of the chamber.
Republican leaders were hopeful that
the comp Omisc program voted out by
majority members Of the Finance Com
, mittce would command sufficient sup
| port to enable the Senate to pass the
| measure late next week. Determined
fights were promised, however. over a
number Of sections.
Chief points now In controversy. SO
far as the Rcpub leans are concerned.
are inc I'D d in the compromise plan.
! They are the increased income surtaN
and estate tax rates. retention Of the
/ corporation capital stock tax and re-
| striction of the $1,000 exemption TO cor
porations TO those having incomes Of
so 600 or less.
This program. agreed upon Nv leaders
in confc GnCes with RCpuhhcan Senators
in the agricultural bloc. Is opposed
by group of nearly a dozen prominent
Senators from Eastern States
The SmOot manufacturers sales tax
plan also promises to be the center Of
sharp fight, but proponents of the
committee bill declare that the tide OF
support for 1t has reached the floor and
begun to ebb. On the other hand. sup
porters of the proposal claim that after
II has been explained by Senator Smoot
1t will gain ground.
Including those adopted BY majority
members of the Finance COMMITTEES
there are nearly $50 amendments 10 the
pending bill printed and ready 10 be
offered. Some of these probably will
not GO in. but others are in prCsnrct
The Senators from the Eastern States
are understood 10 plan to offer sub
Stitutes on the surtaI. estate tax and
other committee proposals witch they
oppose and to demand a record vote in
each case.
Unanimous Report Plan Dropped
Differences among the Republican
committeeman were reported to have
been one reason for the abandonment
iof a pan. discussed Saturday. 10 cali
in the Democratic members Of rhr con-
mittee with view 20 having the
amendments reported out by vote Of
the entire membership.
After disposing of the compromise
program. the Republicans made some
further revisions in the bill. The ap-
scribed yesterday, would provide for:
A graduated increase from the House
income surtaX maximum of 80 per
cent on 500. 900 TO q maximum OF 80
per cent on $4,000 effective next
January 1.
Repeal of the tax on freight. passen-
ger, Pullman, oil by pipe line, express
land parCel-post transportation, also
effective January l.
I from the existing maximum of - per
cent on S25, 900 900 to u maximum Of
} 30 per cent on 500, 900 600. also effec-
tive next January !.
Retention Of the corporation capital
stock tax of 81 on each $1,000 of cup
ital in excess Of $1,000.
Repeal of the $1,000 cxempt!on al
lowed corporations, except where the
net income is less than so. 600, effec-
tive next January /
A fat rate OF sc. 40 gallon ON dis
titled spirits. but with a provision for
a rebate of S4.20 a gallon when it can
oe shown to the satisfaction of the
commissioner of Internal Revenue thai
the spirits are used for industrial or
medicinal purposes.
Luxury Taxes Repealed
Repeal of the excise taxes ON sport
rs sNoH"' tNAo' 'H'" "AHS gum fl'CITl'
fans, thermOs bottles. smoking and
hunting equipment, toilet soaps and
powders and perfumes and cosmetics.
Repeal of the ) per cent tax on the
Licensing or leasing of motion picture
films.
Retention of the House proposal for a
, fat tax Of 3 per cent on candy. with
elimination Of the Senate committee
! proposals for a 10 per cent tax ON
! candy selling at wholesale for more than
forty cents a pound.
Retention of the House provision for
reduction from 10 per cent Ia ; Dcr
cent in the tax on works Of art. Elm
nation Of the Senate committee nrovis.
ions for taxes on Photographic an
paratus and accessories, hotel room, in
excess Of certain prices and Office fur.
niture made Of imported hardwnocg
Those were the only new taxes prOposaJ
by the Senate committee.
Repeal of all the Transportation tavae
would cut of an estimated s3G2 900
Wo in the next calendar year. while
elimination of the excise taxes agreed
upon would mean a further reduction
of about 500 ,OOO. 900. As cfsrts
against those losses there will br es
fimatcd gains Of SJO. .OOU. 900 from In.
come surtaXes, $40, 900 900 from dis
titled spirits and $50 600 900 by ron o
son OF repeal Of the $1,000 pXauD'iun
in the case Of corporations huving IN
comes in excess OF So, 900 Retention
of the capital stock tax would add
another so, 900 900.