The Richmond palladium and sun-telegram., 1921-09-23
ORDER PEACE
PACTS REPORT
BE FAVORABLE
Senate Foreign Relations
Committee Approves Treat
les with Germany, Austria
and Hungary.
BORAH VOTES AGAINST
(Rv Associated rressl

WASHINGTON, Sept %. - Favor
able report on the peace treaties
between the United States and Ger
many, Austria and Hungary was or
dered today by the sena te foreign re-
lations committee.
Senator Borah, leader of the fight
against the treaty of Versailles. was
the only member to vote against re-
porting the treaties.
Before reporting the three pacts the
committee adopted a reservation re-
quiring that congress pass an act for
appointment of an American represen.
tative on the allied commission by the
president with the advice and consent
of the senate.
Another effort to bring up the tax
revision bill in the senate was plan
ned today by Chairman Penrose OF
the finance committee, who also hop
ed to submit the majority report on
the measure. The Pennsylvania SEN
ator desires to have the bill read
this week, with view to the opening
of the general debate by next Mon
day at the latest
Assault Launched
The Democratic assault on the
measure already has been launched
Senators Walsh of Massachusetts, and
Gerry of Rhode Island, with the ap-
proval of Senators Simmons of North
Carolina and Reed of Missouri, other
minority members of the finance CON-
mittee, issued a statement last night
attacking the bill as indefensible and
giving notice that the Democrats
would concentrate all their efforts in
an endeavor to change features which
they deemed most unfair and un-
just
Senators Walsh and Gerry already
have proposed amendments which
would provide for reductions in the
normal income tax IA tes on individ-
ual committees of $4,000 or less and
| for a graduated tax of from 10 to 20
per cent on incomes of corpora tons
in lieu of the proposed flat Is per
cent rate.
Claim Unfairness
The senators declare in their state
ment that under the Republican pro
posal every corporation, whether MAX
ing excess profits or not. would have
TO pay so per cent increased tax on
| its net income
Those corporations which are GER
[
profits as soon as business revives"
says the statement ARE to be immed-
lately and directly benefited, while
those corporations that are certain of
being obliged to struggle for a long
period of time before any reasonabl
profits are TO be realized, are to have
their tax burdens increas sed
We cannot accept the theory of the
Republican ma jOrity that iuStifieu This
rank discrimination against the strug-
Cling, small profit making corpora
tions. No such inequitable tax was
eXacted even during the war when the
governments was exerting every pos
sible means TO raise revenue as now
proposed by the Republican majority
in desperation to meet the loss of rev
enue to the government abolishing of
the excess profits tax, a loss of $50
100000 or one-seventh of the entire
tax to be raised under the proposed
revenue bill.
i Income Tax Stand.
/ Discussing the proposal TO reduce
the normal income tax on individuals
having $4,000 or less a year, the
statement says this class of taxpay-
ers constitutes 'the great investment
class, the unorganized middle class.
the home building class, indeed the
bone and sinew' of the country" and
that yet, the Republican program has
practically eliminated from considera-
ton this element of our population
except for small additional exemptions
in the lower surtaX brackets and for
the heads of families with less than
$4,000 income