New-York tribune., 1921-09-30
Democrats Pile
Amendments
On Tax Bill
Agricultural Group Hopes
to Defeat Plan to Con
tinue the Transportation
Levy, With Minority Aid
Asks 50 Per Cent Surtax
penrose and Simmons i'm
Clash; La Toilette Saws
Measure Favors Wealth

WASHINGTON, Sept. 20. - Senate
.onsiderstion Of the Republican tax
revision bill was marked to-day by the
Introduction of sweeping amendments
rom the Democratic side, row be-
tween Chairman Penrose. Of the FL
nance Committee, and Senator Sim
aons, of North Carolina, ranking Dem
ocrat on shat committee. and charge
sy Senator La Toilette, Republican. of
Wisconsin, that features Of the bill
dealing with foreign traders and for
eign trade corporations constituted q
adevice to enable individuals of great
wealth TO escape taxation"
Behind the scenes there were some
Efforts to bring about an agreement
among opponents of the more outstand-
iag tax features, but apparently there
were no final conclusions. Republican
Senator's in the agricultural ''bioc"
were confident, however. that with the
aid Of the Democrats they would be
able to defeat the committee plan to
een.inue the taxes on freight, pas
for another year at half the present
rates.
Demands 81 Per Cent Surtax
Repeal of these levies was one of
several proposals put forward by Sena-
to, Simmons on behalf of the minority
members OF the Finance Committee.
The others included q maximum surtax
rste of 50 per cent in place of the pro-
posed 80 per cent; retention OF the
corporation capital stock tax. which
the committee would repeal next year;
repeal of the $4,000 exemption allowed
corporations and Of the special taxes
on brokers and proprietors of theaters
and other places of amusement, and on
owners OF automobiles operated for
hire. Another amendment would pro-
vide that persons having net incomes
in excess OF $4,000 would not be eli
rble for the normal exemptions now
allowed by law to single men, married
men and to heads Of families on ac-
coun. of dependents
Under the Simmons amendment to
the surtax provision the rates fixed
by the committee Up to 81 per cent
would stand, but above that the levies
would be 80 per cent on incomes from
$4,000 to $4,000, and the following
rates ABOVE tnat; 50 per cent, $54,000
to $4,000; 90 per cent, sa2, 900 to s9o,-
o0o; 36 per cent, $4,000 to S100, 900; 40
per cent, 100000 to s150Ooo; "A per
cent, s1b0,00o to 100000; 48 per cent,
$500 900 to 100000; so per cent, $780,
900 to S500.000 and So per cent on in
comes in excess Of S500,00O.
Simmons Estimates Effects
In a statement explaining the amend
ments Senator Simmons said repeal OF
The transportation taxes would cause a
net loss of S131, 100000 a year, but that
the government would get S75,O00.ooO
from the capital stock tax, $50, ,000, 900
from repeal of the $4,000 exemption al
lowed corporations, and $4,000, 900
through elimination of the normal ex-
enptions where individual incomes ex-
ceed $4,000.
A motion by Chairman Penrose that
the Senate meet an hour earlier than
usual to resume consideration Of the
tax bill. led TO the incident with Sena-
tor Simmons. The North Carolina SEN
ator charged that there was a most
unseemly drive" to rush the tax bill
through. and warned that if "these
tactics are pursued this measure will
not pass until the snow flies"