Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-10-07
REPUBLICANS AGREE
ON TAX BILL
Special to Indiana Daily Times
Ind Philadelphia Public Ledger.

Special TO Indiana Daily Times
Ind Philadelphia Public Ledger.
WASHINGTON, Oct. 7.-Republicans
Of the Senate appeared to have reached
n basis Of revenue revision upon which
consideration Of the tax bill may be ex-
pedited without interference by members
of the agrarian group. Out OF the meet
ing at the home of Senator Capper Of
Kansas, came the solution Of the taxation
tangle.
BY agreeing to increase the maximum
surtax from 80 per cent to so per cent
with a reduction of the lower brackets
and increasing the Inheritance tax, Re-
. publican leaders succeeded in placating
Aall except the more radical members OF
the agrarian bloc. Senator Penrose Is
understood to have assented to the pro-
gram.
He was to call meeting Of the Finance
Committee today, when Il was expected
the new program would be approved,
and the changes in the present law pro-
posed would be embodied in committee
amendments.
The program reached appeared to dis
bar for once and for all the Smoot plan
for a sales tax and the formation Of
various coalitions whose prospect threat
ems seriously to hamper the plans for
portant changes in the tax bill as it
now stands for the Senate.
REJECT REPEAL OF
HIGHER sURTAxEs.
While repeal of the excess profits tax,
effective Jan. l of next year was accepted,
the repeal Of the higher surtaxes on the
sarre date was rejected. The maximum
surtax was placed at 80 per cent instead
Of 80 per cent, as provided In the bill
at present, but the brackets on incomes
from $4,000 to $4,000 were reduced an
average OF per cent.
The program reacherd further contem-
plates;
4 graduated corporation tax i'm
posing q tax Of 10 per cent on in
comes Of $1,000 or less and tax Of
Is per cent on incomes above that
figure.
Repeal Of all transportation taxes.
as provided in the House bin. The I
Senate bill provides for retention Of
taxes on freight and passengers for
another year. -
Increases In the Inheritance tax
making the maximum rate 20 per cent
instead Of Is per cent as at present
on all over S1o0,0ooooo. The Fed
eral Government, under this plan, will
II collect 20 per cent OF the estate.
Retention OF the capital stock tax
as provided In the House bin.
Repeal Of most Of the nuisance
taxes.
A whisky tax Of $40, instead Of
$3.50 a gallon as provided In the
Senate bill,
LENROOT ATTACKS
SHOOTS PLAN.
Senator Lenroot Of Wisconsin attacked
the sales tax plan advanced by Senator
Smoot of Utah on the grounds it tut
terly ignores the rule that taxes Shout
be paid according to ability to pay"
ana would lie extremely difficult to ad-
minister.
y new plan for reaching money which
has been placed in tax exempt securi-
ties in order to escape the income taxes
and more particularly the surtaxes. was
embodied In amendments proposed by
Senator Walsh Of Massachusetts, His
proposal is that tax exempt securities,
when part Of estates, shall be taxed 10
per cent IN addition to the estate tax
In order to reach persons sssking to
avoid surtaxes by making gifts Of their
money, he proposed another amendment
to tax gifts Of amounts from $4,000 to
$4,000 ! per cent and from 5000 10
S10,0o0000 on a graduated scale up to %
per eent-Cbpyright, 1921, by Public
Ledger Company.