The Connecticut labor news., 1921-08-26
ORGANIZED LABOR OPPOSES TAX BILL
 NOW IN CONGRESS
Treats War Looters Too Lovingly, Declares Official Protest to
 Members.

Washington, Aug. 26.-In final ef- fort to defeat the new tax bill, which passed the house on Aug. 20, represen- tatives of organized labor, headed by President Gompers, called on congress- men to send the bill back to the commit tee, that glaring inequalities could be rcmedicd. The plea was igonred.
 Trade unionists will carry the fight to the senate, and it is predicted that a bat tie royal will 5e staged in the upper branch by a group of progressive sena- tors before the measure IS approved by that body.
 As passed by the house, the bill makes no attempt to tax the loot of war prof. teers. The tax on excess profits is re- moved, and the surtax, extra income tax, on swollen fortunes and great cor porate interests IS cut in two.
 The exemption of $2,O00 for married men is increased to $2, 500, and the $2O0 for each dependent is increased to $4OO In referring to these exemptions, the or ganized workers said:
 We are not deceived bp the sop thrown to the people in the form of in creased exemptions i'll the lower brackets of the income tax. We are aware that those who escape a trifle Ill that respect will pay more heavily elsewhere.
 Government tax experts themselves have testified that the excess profits tax is a fair and honest tax because 1t is a tax on ability to pay. So 1t Is with the surtax and the graduated tax on the higher brackets of the income tax and these should stay as just and proper pro- visions.
 Ut has been estimated that excess profits, above reasonable return, pocket ed by favored class during the war, totaled fully $8,00O,0OOOOO. It is clear that to allow this great tribute to favor ed ones to escape while wage earners are compelled to carry an added bur- den IS an outrage.
 The country will demand an account ing if the present bill becomes law. In the name of the wage earners of Amer ica, as their representatives, we make solemn protest"
 The bill not only permits profteers to escape with their war loot, but it actually permits prohteers to pay less taxes Ill proportion to the amount that they gouge from the people.
 : This statement was made by Congress- man Oldheld on the floor of the house He presented figures to support his claim that the flat corporation tax of 12 1-2 per cent as a substitute for the excess profits tax favored the extortion- CTS.
 The law maker declared that there is not an expert in the treasury department who will dispute the accuracy of his figures.
 Under the present law a corporation with $50OO0 capital stock is taxed 10 per cent or $50 when it makes per cent profit Under the law as passed it would pay 12 1-2 per cent or $62.50," he said.
 When it makes per cent profit it would pay $25 more; when it makes 8 per cent it would pay $50 more; when it makes 10 per cent it would pay $75 more; when it makes IS per cent it would pay the treasury $47.50 more than the present law. Now, when the corpor- ation begins to prohteer little bit more and makes 20 per cent it pays $340 less. When 1t makes 25 per cent 1t will pay $1, 50 less than under the present law.
 ''When it makes B 1-2 per cent it will pay $2,0o3.34 less than under the present law. When the same corporation prof. teers to the extent of making 50 per cent on its invested capital under the provisions of this bill it will pay $4,285 less taxes than under the present law.
 "In other words, the more these cor porations profteer on the people the less they will have to pay"