The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-10-06
SMOOT TAX
BILL HITS
HOUSE SNAC
People Want Burden Lift
ed, Not Shifted Moa-
dell Declares.
BY DAVID LAWRENCE
Copyright, 1871
L !.

Washington, Oct. 6. - Republi-
can Leader Mondeu told President
Harding today that sales tax was
not only illogical but impossible of
enactment in the house. The pres
ident didn't commit himself but
said il was a matter for the two
houses of congress to work out.
Mr.. MondelFs visit followed sew
eral conferences which admins
tratiOn senators had with Mr.. Hard
ing in which they urged him to
throw his influence in the scales in
favor of so-caIled manufacturers
sales tax.
Row Reaches Climax.
The controversy between the ad-
vocates and opponents of a sales
tax has reached a climax inside the
administration camp. The house is
insistent that the bill which it has
passed be used as a basis for tax
Legislation and Mr.. Mondell indi-
Gated that there would be no OBJ
lection in the house if the senate
made certain changes in the nui-
sance and transportation taxes. In
other words the formula of taxa
ton prepared by the house will be
adhered to by its members and the
other method proposed by Senator
Smoot will be vigorously opposed.
We worked in the house" said
Mr. Mondell, ION the theory that
the people wanted the tax burden
lifted and not shifted. With all
due respect to the gentlemen who
are advocating a sales tax, it is il
logical and adds to the burdens of
the taxpayer Nor is it the sim
pie thing that is claimed. How, for
instance, will sales tax be COM
puted on the wool grown in any
state? Will it be placed at the
source or will it be placed on yarn
or on cloth? 1t will be passed on
just as surely as any other tax"
Bring Evils, Not Cure Them.
The Republican house leader de-
clarod that new system of taxa
ton would have its embarrass-
ments in many other respects. The
government machinery would, of
course, have to be changed so as
to collect the new taxes Further
.
Mondell's opinion that the manu-
facturers' sales tax wouldn't bring
with it more evils than it was de-
signed to cure. He declared, too,
that the house bill was by no
means a perfect measure but that
it did tend to relieve the people of
the abnormal and unusual taxes.
He saw no hope for the amendment
proposing that the repeal of the ex-
cess profits taxes be made effec-
tive as of last January. When it
was suggested to him that many
business interests may have got
ten behind a sales tax because of
their disappointment over the fact
that excess profits taxes will not
be Immediately repealed, Mr.. Mon
dell insisted that such a step was
also illogical. He argued that he
could hardly believe that members
of congress would support so bur
densOme a measure as sales tax
in order to insure relief to a few
taxpayers from excess profits tax
MIR. Nondeu said he originally ia
vored making the repeal retroac-
tive but that he had been won over
to the other view because it had
been represented to him that the
firms which are asked to pay ex-
cess profits taxes for the calendar
year of 1921 have already passed
on that tax to the consumer who
has paid it and that it would be
unfair to let one set of taxpayers
pay while another set benefited by
the change.
Recess Is Unlikely.
While talking with the presi-
dent. Mr.. Mondell expressed him
self on the subject of a recess of
congress at the beginning of No
vember as had been gossiped for
several days. The Republican lead
er drew out a pad and wrote a list
of a half dozen major subjects
pending in congress such as the
treaties with central European
countries, the tax bill, the tariff,
the railroad bill and the bill to fund
foreign debts.
when all these are disposed
Of" he said, with a smile, Il think
we can adjourn the special ses-
sion"
That was only another way of
saving that the legislative calen-
dar was so crowded that congress
will be accomplishing almost a
miracle If it clears its slate of
most of these questions. The
session