The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-10-01
TAX Bill
WILL MEET
OPPOSITION
Administration Meas
ure Not Acceptable
to Many Democrats
and Some Republi-
cans

NA1lO
Washington, Sept. 27.-Tax re-
vision legislation was under way to-
day in the senate with indications
of bitter fight to come over the
more important provisions of the
measure reported by the finance
committee.
Notice was given by Senator Sim
mons. of North Carolina ranking
minority member. ofthe committee
that sweeping and radical amend
ments'' would be offered by the
Democrats and he added that if the
sponsor for the manufacturers
sales tax would accept those
amendments, serious consideration
would be given to such a sales tax
and part of the Democratic
scheme. provided such a levy
should prove necessary il, order
to raise the needed revenue.
Objections to specific sections OF
the bill came from the Republican
as well as the Democratic side Of
the chamber and Senator Lenroot.
Wisconsin, a Republican member
Of the agricultural "bloc' propos-
ed amendments to the income sur
tax provision under which existing
rates would be continued up to SO
per cent. on incomes exceeding
100000 with an alternate propos-
al of a SO per cent. levy on in
comes of from 100000 to 100000
and a SO per cent rate on those
above 100000.
BY taking the bill up under an
agreement to accept uncontested
committee amendments to the
original house measure, the senate
made considerable progress on pro-
posed changes to some of admin
istrative features. None of the levy
provisions was passed upon, how
ever, objection being made in each
case. Consideration Of the bill un-
der this agreement will be con-
tinued tomorrow and Senator Pen
rose, Pennsylvania, in charge of the
measure gave notice that he would
seek to have the senate meet an
hour earlier each day in order to
expedite consideration-of the leg
islation.
In Offering objections to some
phases of the bill Senator Sim
mons told the senate tl.lt it was his
judgment that in enacting peace
time tax laws it would be better for
the senate ''to strike out boldly on
new lines instead of tinkering with
and trying to repair d machine that
was created to meet other circum-
stances and conditions.
He declared that he would vote
against the bill in it's present form.
describing it as 'the most horrible
and unjust proposition of taxation
that has ever been presented in
thi schamber."
The amendment to be offered by
the Democrats Senator Simmons
continued, would be designed to
produce something like Uniform
ity of taxation between the differ
ent classes and groups of tax pay
ers in this country, and will rem
edy some Of the class discrimina-
tions which reek throughout the
BILL
He added that 'the favoritism
which this bill displays towards the
corporations of the country and
against the partnerships and indi-
viduals is so great that most of the
partnerships will dissolve to incor-
porate and every individual in the
country who can if possible. would
like to convert his operations into
corporate form"
There was some discussion today
of a tax on the undivided profits
of corporations held so as to avoid
payment of revenue to the govern
ment. Senator Smoot, Republican,
Of Utah, said he hoped that no ef-
fort would be made to pass a law
which would force corporations to
distribute their profits as dividends
as this would tend to prevent them
from laying by sufficient surplus to
meet business slump.
Senator's Simmons and King.
Democrat, of Utah, said there
would be no disposition to enact
such law. hut that some means
should be found to prevent corpor-
ations from evading the payment
of taxes. Senator Smoot told the
senate that he did not think there
would be many concerns which
would make enough in the next
several years to have any consider
able surplus left after paying reg
ular dividends