The Birmingham age-herald., 1921-11-04
SENATE REJECTS
 SALES TAX BY A
 43 ID 25 VOTE
The Democrats Vote SoIidIy Against Tax and Joined by IT Republicans
 Last Night
By Associated Press

NdShlHS toilf NpNeHlpeT o.-lhe sales tax was rejected tonight by the Senate
 The vote, 4s against to 25 for, was on a proposal by Senator Shoot, re- publican, Utah, for per cent levy with exemptions provided in the cases Of sales by farmers of the products of their farms. sales by public utin- ties and those by the United States or any foreign government or any state or territory, the army and navy hospitals.
 The democrats voted solidly against the sales tax and were joined by l7 republicans.
 The roll call showed:
 For the amendment, 25 republicans. Bursumt Cameron, Edge. Ernest, Fer nald, France, Frelinghuysen, Good ing, Jones of Washington; Keys. Me- Kinley. Moses. New. Newberry, Nieh- olson, oddie. Phipps, Poindexter, shortridge, Shoot, Spencer. Wads- worth, Warren, Watson of Indiana, and Weller.
 Against the amendment, 43. Repub- 1ieans, Borah, Capper. Curtis. Ken yon. LaFollette, Lenroot. Mccormick. McCumber. McNary, Nelson, Norbeck Penrose, Stanfield Sterling, Suther- land, Townsend and Willis. IT. Dem ocrats. Ashurst, Broussard, carroway, Fletcher, Gerry, Glass, Harris, lief lin, Jones of New Mexico; Hendrich, King, MeKellar, Myers. Overman, pittman, Pomerene, Reed, Sheppard Simmons. Stanley. Swanson Tram nell Walsh of Massachusetts. Walsh of Montana, Watson of Georgia and Williams. 26.
 Decisive Defeat
 This vote was regarded generally SIS decisive defeat of the whole ques- tion of sales tax at this time, but immediately after 1t had been an nounced. Senator Shoot offered an- other amendment, embodying n busi- ness sales tax of one-half of one per cent on gross sales in excess of SC. 900 a year This went over until tomorrow and Senator Shoot said he did not think consideration of it would would consume much time.
 In the debate on the defeated manufacturers sales tax plan, some republican leaders indicated that a sales tax might have to be provided TOT III COH1tGllOn Wltu the SOluleTS bonus bill, which they predicted would be passed at the next session of Congress
 Discussion of the sales tax was comparatively brief. Senator Shoot was the chief speaker for the plan which was opposed by Senators Lem root of Wisconsin, McCumber of North Dakota. Mccormick of Illinois and Nelson of Minnesota, on the re- publican side. and Senators Jones of New Mexico. Heflin of Alabama and Simmons of North Carolina on the democratic side.
 One Hope of Relief.
 Senator Shoot, in reply to a ques- ton, contended that the government requirements would be amply met" through the six sources of revenue he proposed. He added that he had reason to believe there could be a reduction in the rate of the tax after the next fiscal year.
 Turning to the intricacies of pres ent tax methods, he asserted that his proposal presented the one hope for genuine relief in that respect
 The amount which he proposed to levy, he continued was so small as to be infinitesimal when considered in the daily purchases.
 Opening the argument against the sales tax, Senator Lenroot, repub- lican. Wisconsin, took issue with Senator Shoot that 75 per cent of the people of the country favored the sales tax There had been a great propaganda for the sales tax, he de- clared. but contended that 1t would not change the income tax of individ" uals or corporations. A sales tax, he continued, was justified only when Il. fs. fffaY, had haa exhausted, and the government still was short of revenue.
 Referreing to the Reed soldier bonus amendment. Senator Lenroot predicted that the soldier bonus would not be included in the tax bill hut that it would be passed before next July l. He added that the sol diers would not lose by the delays as under the bill held up recently no cash would have been paid until next July l.
 Mir. Lenroot contended that the tax vould cut with a double edge, strik- ing the consumer through accumula- tion in a rising market or in pe- riod of depressed prices and small sales.
 When prices were advancing. he said. the entire tax would be passed on to the consumer by the manufact- urer, with an extra tribute added, while with prices tending downward, competition would prevent the pass ing on of the tax.
 A per cent tax on sales might easily mean, MT. Lenroot said, tax of 30 to 60 per cent of the net in- come of a firm through inability to mass it on. He characterized the pro- posal as class legislation in this re- Suect