The New York herald., 1921-10-07
AGRICULTURAL BLOC
FORCES AMENDMENT
TOPENDINGTAX BILL
Senate Conferees Designate
LenrOOt to Draft Sections
Agreed Upon by the
Republicans.
PRESIDENT APPROVES
Surtax Rates Modified and
General Sales Levy Is
Definitely Aban-
doned.
NUISANCE TAXES TO GO
Calder Provision for Increased
Levy on Alcohol Adopted
Higher Rate Made on
Estates.
NUISANCE TAXES TO GO

Special Despatch to THE NEW YORK HEaALp.
New York Herald Bureau.l
Washington, ID. c., Oct. e.]
Republican leaders of the Senate
to-day agreed upon programme by
which the pending tax revision bill
will be rewritten in large measure
md receive the support of the agri-
cultural bloc and practically all Re-
publican Senators. Senator Lodge
went to the White House and laid the
rlan before President Harding, who
gave it his approval. ,
Senator Lenroot (Wis.), 9 member
Of the agricultural group, was desig-
mated to draft the amendments &C.
t,pted by the leaders. They will be
presented to the Finance Committee,
which is expected to report them to
the Senate as committee amendments.
The conference to-day, at which
this programme was agreed upon,
was the result of meeting last night
of Senators Lenroot, Mccormick
(Ill.), Capper (Kan.) and other
members of tha agricultural bloc
with Senator Lodge. To-day's con-
ference was attended by Senators
Lenroot. Mccormick. Lodge, Penrose,
chairman of the Finance Committee,
and Watson (Ind.), member Of the
Finance Committee and close asso-
ciate Of the President.
sumnsary OF Revfsisns.
The programme is understood to
meet the approval Of the House leaders
In the main and the fear that the tax
bill might fail this session because of
the factional differences over rates has
virtually disappeared. The amend
ments agreed upon to-day follow.
A maximum surtax rate of SO per
cent. in place Of the rate OF 32 per
cent. in the pending bill and the IS
per cent. rate of the existing law.
All surtax rates to be reduced on
incomes below $4,000. The pend
ing bill proposes reduction on in
comes OF less than $4,000, but
slightly increases the rate on in
comes between $4,000 and $4,000.
The existing corporation income
tax of 10 per cent. on corporations
having a net income of less than
$4,000, with an increase to Is per
cent. on corporations with larger
incomes will be retained.
The corporation stock tax, which
the Senate bill proposes to repeal,
will be retained.
Increase to be made in the maxi
mum rate of tax on estates from
25 per cent. to 40 per cent. this
rate to apply on estates above
$4,000 900.
Some of the miscellaneous "nui-
sance" taxes to be repealed.
The Calder amendment to in
crease the tax on whiskey and al
cohol to be adopted.
The excess profits tax will be re-
pealed, effective January 1. 1922. as
provided in the pending bill.
Sales Tax Aba andoned.
There will be no change In the normal
tax rates.
The agreement Is understood to kill all
prospects at this session OF q general
sales tax, such as that proposed by Sem
ator smoot. There is growing senti-
ment for this tax In the Senate, but It
cannot yet command majority OF the
Republican votes. nor does 1t meet with
- tt,< a
ers, who say that 1t Is doubtless all
right in itself, but they do not believe
the country wants any new forms OF
taxation.
The changes in the pending Senate bill
as agreed upon to-day are those pro-
posed by the agricultural bloc They
were accepted by Senator Penrose, SEN
r.tor Lodge and other Republican organ
ization leaders with considerable reluc-
tance. especially in the modification of
the surtaxes. They yielded because II
they had not done so II seemed likely
that the agricultural bloc would join
the Democrats and force the adoption
OF still higher maximum surtax rate.
Whether there will be a graduated
corporation income tax or the flat rate
OF 10 per cent, as provided in the pend
ing bill. has not been determined. but
Senator Watson said the increased es-
tate tax was scarcely worth while. as II
would not produce more than s1i.0o000D
additional. but Senator'S Mccormick and
Lenroot insisted on II. a proposal by
Senator Watson for n three cent post
tage stamp on first class mall as SUBJ
st,tute for some OF the nuisance" taxes
was turned down
Senator Lenroot. in n speech In the
Senate voiced the opposition of the
group to which he belongs to the pro-
posed sales tax. while Senator Smoot
defended 1t. Democratic Senators, when
they heard of the Republican ngree-
ment, made haste TO claim that the
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