Evening journal., 1921-10-26
EXCESS PROFITS
TAX IS GOING
Reeds Effort to Retain 1t
Defeated by Senate,
SO to 27
FINAL VOTE TO
COME TODAY

WASHINGTON, Oct. 2s-Final re-
peal OF the excess profits tax on next
January was forecast last night
with the defeat by the Senate OF an
amendment to the tax revision bill
proposing indefinite retention Of this
tax at the present rates. The vote
was SO to 2s. with four Repubn-
cans Joining the solid Democratic
minority in supporting the amend
i1ent.
Senator Reed. Democrat, Missouri.
author OF the defeated amendment.
Immediately proposed another for
continuation OF the profits tax at
about half the present rates. This
was under debate when the Senate
recessed at s D. m. until today under
unanimous consent agreement to
have a final vote on the repeal of
the profits tax at p. m. this after
noon.
The session last night was FIRST
OF the long threatened night ones to
expedite passage OF the tax bill. but
It ended more than two hours before
the time originally agreed upon.
The agreement to vote today
was the FIRST arrived at between
the Democrats and Republicans and
followed all-day conferences be-
tween majority and minority leaders
which resulted in a failure TO come
70 any understanding as to a day for
a hnal vote on the bill
Without a record vote. the Senate
also adopted an amendment by sena-
tor Trammell, Democrat. Florida.
providing that in case a taxpayer
borrows money TO purchase or carry
Federal securities. he may deduct
in computing his net income only
the difference between the amount
Of the interest paid on the Indebted
ness and the amount received In in
terest from the securities.
Opening the attack on the propo-
sal TO repeal the excess profits tax,
Senator Reed declared this PROPOSE
tion was the most monstrous ever
put before the American Senate"
Declaring that on the basis Of the
treasury estimate Of $3.50. 200. 900 in
profits taxes this year. business con-
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cess profits this year. Senator Reed
said:
We propose 10 say TO the farmer
who has lost money; TO the small
income Garner who is straining every
nerve 20 make both ends meet. you
must pay taxes wrung from you By
process Of hardship. but we propose
20 take the taxes OF those who have
made monsy by making prices 50
high they have deprived you people
OF a large part OF your earnings '
Senator Reed declared the propo.
sails in tho tax bill 20 reduce the
taxes paid by the profiteers and
the very rich TO the amount Of $40
100000 a year" were written in q
, redeem pledges which he charged
were made by the Republicans tC
subscribers 90 campaign funds.
Normal tax rates Of 4 per cent OF
the first $4,000 of income. and pei
cent on all above that amount. were
approved today without a record
vote. These are the rates now in
force.
The committee amendment pro
posing these rates. which the Demo.
Gratis thrice sought 10 amen
without success. was approve
within a minute after the Senate
met There was no discussion.
Also without a record vote tn,
Senate adopted an amendment by
Senator Hitchcock, OF Nebraska, un
der which interests paid in 1921 an,
1922 on Indebtedness incurred q
purchase or carry tax exempt Sc
curities issued by the United State
would not be deductible for purpose
OF determining net income.
Without a record vote the Senat
approved the House proposal In
creaAng from $1,000 to $500 the ex
emption 10 heads OF families havin
net tncomes'of 5000 a year or les
Another amendment by Senate
Trammeu was voted down. AZ 10 rs
four Republicans, Senator's Kenyon
Ia Toilette. Norbeck and Norris
Joining the solid minority in sup
porting IT, The amendment pro
vided that the deduction in the pre-
viously adopted Trammal amend
ment be allowed only in case IN
federal bonds were purchased a