Evening star., 1921-10-27
|DEN|0CRAlSREAEW
FIGHT ON TAX BILL.
Determined to- Push Provision
Seeking Greater Return to
Government.

Senate democrats renewed today
the fight for q greater tax On corpo-
ratfons after this calendar year than
is proposed by the compromise rev.
enue-revision program agreed upon
by republican leaders.
Having been defeated in their ef-
forts to keep at least q portion OF the
excess profits tax after next Decem-
ber 81. the minority apparently were
more determined than ever In pushing
proposals for a corporation income
tax provision which would bring q
greater return to the government
than would be realized from the 10
per cent rate,proposed In the bill. Ma
jority leaders believed. however. that
they had sufficient votes to put
through the Is per cent provision.
The Senate worked today under a
unanimous consent agreement that
before recess 1t would dispose Of all
amendments to the corporation In
tor Walsh, democrat. Massachusett it's.
a graduated tax Of 12k to
rs per cent, dependent upon the size
of the net profits Of the corporation.
The maximum rate would apply on all
of that part of net income in excess
of $500.000.
Debate Ends Today.
General debate on this section OF the
bill was to end at 4 pm. Amend
'ments then would be in order. with
the sponsors given Ave minutes each
to explain their proposed changes.
Republican leaders hoped to reach
soon another unanimous consent
agreement with the democrats with a.
view to speeding up action on the
bill. With the disposition of the cor
poration tax question. the only i'm
portant controversial features re-
manning will be the Inheritance tax,
proposed tax on undistrfbuted pro1ts
Of corporations, and the Smoot manu-
facturers sales tax.
Senator Jones said that II this
amendment were adopted he would
offer others proposing that dividends
paid by corporations would be subject
to taxation in the hands of the stock
holders on the basis of the existing
individual normal and surtax rates.
corporations also should be taxable
in the hands OF stockholders.
Repeal Alade Certain.
Repeal Of the excess profits tax al
of next January 1 was made certain
yesterday with the adoption by the
Senate without a record vote of a
provision in the tax revision bill pro-
viding only for its collection this
calendar year The provision adopted
10 y ouUoIituIc lOT tHS cACeoo pIoulO
section of the existing law.
Before accepting the original pro-
vision in the bin, the Senate voted
down, 42 to 81, an, amendment by Sem
ator Reed proposing that for 1921 and
thereafter the excess profits tax be
20 per cent on the net income Of cor
porations between Is per cent and so
per cent of the invested capital and
40 per cent on the net income in ex-
cess Of SO per cent. Six republicans
joined with the solid democratic mi
nority in supporting this amendment.
They were Borah, johnson, Kenyon,
La Toilette. Norbeck and Norris
The Senate also voted down. AZ to
33, another amendment by Senator
Reed proposing that the excess prof.
it's tax be 90 per cent OF the net in
come in excess Of SO per cent of the
invested capital. Eight republicans
Borah, Capper. Johnson. Kenyon. La
McEary. Norbeck and Norris,
supported this amendment. and one
democrat, Glass, opposed It.