The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1921-10-21
new TAX PLANS
ARE AGREED UPON
Agricultural Groups Ideas Ac-
cepted by Penrose as Amend
ments to Pending Bill.
ENSURES QUICK PASSAGE
Senate Conferees Designate Lenroot to
+; Draft Sections Agreed Upon-Sur-
tax Rates Modified and Gen.
eraI Sales Levy Abandoned.

Washington.-Rep leaders of
the senate agreed upon program by
which the pending tax revision bill
will be rewritten In large measure
and receive the support Of the agri-
cultural bloc and practically all Re-
publican senators. Senator Lodge
went to the White House and laid the
plan before President Harding, who
gave it his approval.
Senator Lenroot (Wis.), a member
pf the agricultural group, was desig-
hated to draft the amendments ac-
tepted by the leaders. They will be
presented to the Finance Committee,
which is expected to report them to
the senate as committee amendments.
The conference, at which this pro-
gram was agreed upon, was the re-
suit of a meeting Of Senators Len
toot, Mccormick (Ill.), Capper (Kan.)
Ind other members of the agricultural
bloc with Senator Lodge. The con-
ference was attended by Senators Len
root, Mccormick, Lodge, Penrose,
chairman of the Finance Committee,
and Watson Qnd.), member of the
Finance Committee and close asso-
riate Of the President.
The program Is understood to meet
The approval Of the house leaders in
the main and the fear that the tax
kll might fall this session because of
The fractional differences over rates has
virtually disappeared. The amend.
hents agreed upon follow.
A maximum surtax rate of 80 per
cent in place of the rate of 80 per
cent in the pending bill and the 65
per cent rate Of the existing law.
All surtax rates to be reduced on
incomes below $4,000. The pend
ing bill proposes a reduction on In
comes of less than $4,000, but
slightly increases the rate on in
comes between $4,000 and 100000.
The existing corporation income
tax of 10 per cent on corporations
having a net income of less than
$4,000, with an increase to Is per
cent on corporations with larger
incomes will be retained.
The corporation stock tax, which
the senate bill proposes to repeal,
will be retained.
Increase to be made In the maxi
mum rate of tax on estates from
20 per cent to 40 per cent, this
rate TO apply on estates above $10,-
100000.
Some of the miscellaneous "nui-
sance" taxes to be repealed.
The Calder amendment to in
crease the tax on whisky and al
cohol to be adopted.
The excess profits tax will be re-
pealed, effective January 1, 1922, as
provided in the pending bill.
There will be no change in the nor
NAL tax rates.
The agreement Is understood to kill
all prospects at this session of a gen.
eral sales tax, such as that proposed
by Senator Smoot. There is a grow
Ing sentiment for this tax In the SEN
ate, but ii cannot yet command a ma
jority of the Republican votes, nor
does 1t meet with approval of the
House leaders, who say
that 1t is doubtless all right In itself,
put they do not believe the country
wants any new forms of taxation.
The changes in the pending senate
ill as agreed upon are those proposed
~ the agricultural bloc. They were
accepted by Senator Penrose, Senator
lodge and other Republican organiza-
ion leaders with considerable reluc-
ance, especially In the modification
Of the surfaces, They yielded be-
cause If they had not done so 1t
seemed likely that the agricultural
,loc would join the Democrats and
orce the adoption of a still higher
maximum surtax rate.