New-York tribune., 1921-10-01
.s,n1oot Measure
" Would Repeal
AT " IL. Taxes
Substitute FOR sl,c Scnaic
Committee Bill Rosains
The Corporation Income
Assessment Of 10 y. E..
Sales Levy Plan Explained
sinmons Offers Program,
After Attacking Finance
Committees 2SesisioUs

1 WASHINGTON. Seps. .So.-Two seps-
4 ,ase tax programs as substitutes for
I .cSt Of the levy provisions in the pend
1 :as revenuo revision bill were pre-
:sntei to-day in the Senate. one from
a:Ae Democratic SIDE. Senator Smoot OF
U.sh, proposed:
A manufacturers sales tax ot )
| ger cert on articles as finally finished
OF produced fer consumption or use.
II Repeal OF all the special war taxes.
Of whatever nature. including the ex-
cess profits and transportation levies.
Retention Of the existing 10 per
cent income tax on corporations.
Asks No Income Tax Charges
Senator smoot proposed no change
H. the committee plan with regard to
irdividual income taxes or the exist
ing tobacco, liquor and inheritance
taxes.
Senator Simmons, OF North Carolina,
proposed:
graduated income tax on corpora
uoas. ranging from 12ls to % per
cert, in lieu Of the excess profits tax.
Restoration Of the income surtax
rates to maximum or 50 per cent or
Incomes in excess of $4,000
Repeal Of the Transportation taxes
on freight, passenger and Pullman ac-
commodations.
Retention OF the corporation capital
stock tax
Repeal OF the $4,000 exemption a.
lowed corporations.
That Individual exemptions be CON
fned TO incomes below $4,000.
Slight reductions in the normal rates
on incomes below $4,000
Senator Simmons told the Senate that
i there could be an agreement for an
equitable readiustment Of the taxes so
that the several groups of taxpayers
would be on parity, as proposed in
The Democratic program, he personally
would De willing 10 give serious con-
s.deratlon 10 a manufacturers sale or
consumption tax, properly safeguarded,
Is substitute for all of the nliscel-
laneous taxes imposed under the pres
snt law
The North Carolina Senator appealed
10 parties 20 get together in an effort
70 work out bill meeting the require
nsnts OF the present situation and con-
dtions.
Plan for Sales Tax
Senator Smoot, in presenting his
amendments, read prepared statement
n which the sales tax proposal was set
: forth as follows:
There will be but one tax. If
commodity Is sold for consumption or
use in further process OF manufacture
no tax vii be imposed.
IN order to avoid administrative diff
eult!es with small sales the bill provides
Tor an exemption OF all sales Ct less
man $4,000 during ore year. This will
exclude about l per cent of the manu-
iactured goods IN the country. accord
irg to the census of manufacturers It
rill practically exempt all the agricul-
t1ral products. since the average value
oi products Of farms for this year has
.nsen estim ated b. the Department OF
agriculture a between $1,000 and
5000, but as most agricultural prod
rcts would find -neir way into manufac-
tsred products, they would be exempt
'-.s "@s IslIGl tuS ucIHlLlOIl Ol CNe LAX.
provision is made for a like tax
epon similar imported commodities. so
tat there can be no discrimination
against American products.
Estimates Yield at Billion
The yield OF this tax has been care
.lily estimated and approved by one Of
tae foremost economists in the coun-
try, Professor Charles }. Bullock, OF
Harvard, ID produce during the calen-
oar YEAR 1922, S759, 1856 600. Conserva-
i'se has been exercised through cut
ta,s estimat The Weld will undoubt-
e1iy be close TO 81 900 coo 900. but the
nglre given is more than ample to pro-
re the revenue which Will De lost by
sne repeals which propose"
Seaator Simmons offered the Demo
cratic ta1 program 70 the Senate at
tae conclusion OF three hours ad-
o1ess, IN whicn he vigorously assailed
me senate Finance Committee bill as
.ns providing for tax reductions "in
Deaa5f Of the corporations and the ultra
Senator McCumber, Of North Dakota.
Insahing Republican on the Finance
,s.-oIEA'ttee, - IN replying declared the
aorta Carolina Senator rad not offered
oee word q constractive thought"
oenssor Reed, Democrat. Missouri.
I9Tne 70 inc defense Of Senator Sim
Mohs. tie contended that Senator
slfnmons rad offered a constructive
program, and insisted that it was the
~ Of every member of Ccayregs
70 40 al IN his power to pass wise
revenue bill" '''