Evening star., 1921-11-23
SENATE APPROVES
TAX REVISION BILL
Conference Report Adopted
This ACKNOWLEDGEMENTS
of Measure.


of Measure. =
The Senate at O'Clock adopted
the conference report ON the tax
revision bill by a vote OF 50 to %.
commission to go into the
whole Question Of revenue raising for
the government. in order to get. the
most improved law. was proposed to
the Senate this afternoon by Senator
Calder of New York.
The bill proposes that the commits
sion shall consist OF nine members, as
Three to be members Of the
Senate. to be appointed by the Presi-
dent of the Senate; three to be mem
bers OF the House. to be appointed by
the Speaker of that body. and three to
represent the public. to be appointed
by the President.
No compensation would be given to
the commissioners representing the
public. but their expenses would be
paid under the provisions Of the pro-
posed law.
Points to Pacific Lines.
Inc Dill as submitted Dy OeHdtoF
Calder and read in the Senate gives
the specific lines of investigation to
be followed by the commission, among
them being the relation of tax-exempt
state securities to the federal revenue.
Senator Calder. in presenting his
bill, suggested that the appointment
Of such a commission to study the
whole tax question would indicate to
the people that Congress intended
to get the best kind Of a revenue act.
Under the terms Of the proposed act,
the life Of the commission would ex-
pire on April l. 1922. Senator Calder,
in speaking OF the tax measure now
before the Senate: said that 1t was
not the best law, but that it was an
improvement over the law now en-
forced.
Senate and House conferees on the
tax bill were criticised today in the
Senate for their action in disposing of
some of the amendments adopted by
the Senate. Senator Hitchcock, dem
ocrat. Nebraska. said it was a fact
well known that the conferees repre-
sented. not the sentiment Of the ma
Jority in the Senate and House. but
the sentiment only OF the dominent
element in the party in control OF the
two houses.
Senator Simmons. democrat. North
Carolina, said the Senate republican
to recede on the so per cent surtax
amendment adopted by the Senate and
that Chairman Penrose had told the
House managers that they could in
form the House that the Senate man.
ayers would accept a compromise at
40 per cent.
Attacking the system under which
the conferees operated. Senator Walsh.
democrat, Massachusetts. declared
that il conferees persisted in over
turning the will Of a majority in each
house of Congress they would strike
at the vitals OF the government and
would aid "bolshevists and anarch-
lists"
Senator Smoot. republican. Utah, de-
fenIed the conferees and said so far
as he knew the House managers had
not been promised that the Senate
managers would accept 40 per cent
surtax rate.
Income Tax Elective First.
The only important section Of the bill
which will be put into force Immediately
upon it's becoming law. however. Is that
relating to the income tax, the other
tax changes going into effect on next
will be continued for this calendar year.
the reductions agreed upon by the
House and Senate going into effect in
the next calendar year and being re-
f1ected in the actual payments to be
made by the taxpayers in 1928.
fore the Senate yesterday Chairman
Penrose Of the Senate managers in a
formal statement described the bill as
a Temporary makeshift."
1.-THE BILL" Senator Penrose said.
docs not place the tax system on a
ter than the law which it will supersede
because Of the reduction Of the tax
burden and the technical or admins
trative improvements which 1t effects.
LAS has been said, it Is a temporary
measure. But nothing better than a
until the people Of this country give
to the question Of federal taxation an
amount and kind of study which it
has not yet received: until-in par
ticular-the people become convinced
Of the sincerity and truth of the con-
tention that the proposal to reduce
excessive tax rates Is not designed to
relieve the rich and the profiteer. but
to avert the breakdown Of the income
tax, unshackle business and increase
the tax revenue"
Debate on the measure was opened
by Senator Simmons of North Caro-
lima, ranking democratic manager on
the part of the Senate. who reviewed
in some detail the changes made in
conference. He declared that when
the conferees got through with the
bill even some of the most prominent
Of the republican managers could not
conceal their disgust" with the
The North Carolina senator said
that three or four of the compromise
brought forward by
the Senate agricultural bloc were
slaughtered" in conference. but that
some of them were retained. notably
the increased surtax rate. the capi-
tai stock provision and the repeal of
the $4,000 exemption for corporations.
except in the case of those having
net incomes Of $4,000 or less. The
surtax rate would have been cut, he
asserted. il it had not been for the
wise action Of the House in refusing
to trust their conferees."
Attacking the majority Senate man
ayers, Senator Simmons said they
had made an "unjustifiable surren-
der" on the corporation income tax
and had "given up in glee" the Is
per cent rate. in favor of the 12h
per cent rate.
Under the bill as 1t now stands
the senator continued, the corpora
tions will pay about one-half what
they pay under the present law and
less than one-half Of the amount that
individual taxpayers will be called
upon to pay when the new bill be-
comes a law.
SENATE VOTES TO ADJOURN