The New York herald., 1921-09-28
FIGHT ON TAX BILL
STARTED IN SENATE
Objections Are Offered by Both
Democratic and Republic
can Members.
PROPOSAL BY SIMMONS
Sales Levy Will Be Considered
if Amendments Are
Favored.
PROPOSAL BY SIMMONS

WASHINGTON. Sept. e7--Tax revision
legislation was put under way to-day ir
~ Senate. with Indications of a bitter
ftght 70 come over the more important
PROVISIONS of the measure reported by
tho Finance Committee.
Notice was given by Senator Simmons
OF North Carolina. ranking minority
member OF the committee. that sweep
ing and radical amendments" would be
offered BY the Democrats. and he added
that IL the sponsor for the manufacture
ers' sales tax would accept those amend
ments serious consideration would be
given to such a sales tax as part OF
he Democratic scheme provided such a
levy should prove necessary to raise the
need revenue
Objections to specific sections of the
bill came from the Republican as well
as the Democratic side OF the chamber
and Senator Lenroot of Wisconsin, a
Rerubtean member of the agricultural
bloc" proposed amendments to the
income surtax provision under which
IC
30 per cent. on incomes exceeding
sioo.o0c with an alternate proposal OF
90 ner cent. levy on incomes of from
$1,000 to $500 0e0 and so per cent.
RI te on those above 100000.
BY taking the bill up under an agree
nent to accept uncontested committee
amendments to the original House mea-
sure the Senate made considerable prog
ress on proposed changes to some Of the
administrative features None OF the
levy provisions was rassed upon. how
ever. objection being made in each case.
Consideration of the bill under this
samc agreement VIII be continued to-
morrow
In Offering objections to some phases
Of the bill Serator Simmons told the
Senate that it was his Judgment that in
enactinc peace time tax laws It would be
better for the Senate ''to strike out
boldly on new lines instead Of. tnkering
with and trying to repair machine
that was created to meet other circum-
stances and conditions"
The amendments to be offered by the
Democrats Senator Simmons continued.
would be designed to produce some
thing like uniformity of taxation be-
tween the different classes and groups
of taxpayers in this country. and will
remedy some OF the class ClScrimlna-
tiors which reek throughout the bill"
There was some discussion OF tax
on the undivided profits OF corporations
held to avoid payment of revenue to the
Government.
Senator'S Simmons and King. Demo-
Gratis. Utah said there would be no dis
position to enact such a law. but that
some means would be found to prevent
corporations from evading the payment
OF taxes.
Important provisions of the bill passed
over to-day for future considers tlon. In
cluded those reducing the surtax rates
to 32 per cent. increasing the income
tax on corporations from 10 to 10 pei
cent. taxing life insurance companies
granting additional exemptions to head,
Of families having incomes Of $4,000 OF
less and on account of dependents. de.
finng foreign trade and foreign trade
corporations. cxempting from the cor.
poratlon tax labor. agricultural or hor.
ticultural organizations. mutual savings
banks not having a capital stock repre-.
sented by shares, domestic building loar
associations, substantially all the bust
ness Of which Is confined to the making
OF loans to members" and the salaries
OF the President and the Judges of the
Federal courts.