The Birmingham age-herald., 1921-09-10
THREE BILLION IS
 REPUBLICANS TAX
 AIM, SAYSPENROSE
Senate Committee Would Re- wise Tax Measure to Yield S3,200,000,0OO Chair
 man States
By Associated Press

Washington, September 9.-A mini
 mum total tax of sS.90o, ,0o0, 900 for this fiscal year is the aim of the re- publican members of the Senate if nance committee in revising the House tax bill. Chairman Penrose said today after conference of ma jority committeeman.
 This is approximately stoo.ooo, 900 jess than treasury experts have figured the House measure would yield, but Is the total which Secre- tary Mellon has told the committees will be necessary for the conduct Of the government provided the econo- mics in departmental expenditures agreed upon at the White House con ference last month are affected,
 Neither the whole committee, which met this morning, nor the majority members. who were in session this afternoon, reached any agreement or specific revisions proposed yester- day by Secretary Mellon. There was prolonged discussion of some of them at both sessions with the democratic members launching their fight against retroactive repeal of the ex- cess profits tax, reduction of the in come surtaxes to 25 per cent and
 restoration of the transportation taxes at half the present rates.
 After the meeting of the majority members, Senator Penrose said that while the drift of sentiment among the republicans seemed to be in favor of repeal of the profits tax as of last January 1. the situation was sucn that the drift might change in tho direction of repeal as of next Jan uary l, as provided for In the House measure.
 Democrats Oppose Tax Repeal
 Senator Simmons, North Carolina, speaking for the six democratic members of the committee. declared against retroactive repeal of this tax and characterized as "indefensible" the proposal of Secretary Mellon to reduce the income surtax from 63 per cent to 25 per cent effective January 1. 1922. He declared that the 32 per cent maximum rate fixed in the House bill was too low.
 During the day, Senator Hitch cock, Nebraska, acting democratic leader. issued formal statement attacking the proposals to repeal the profits tax and cut the surtax rates, declaring such action very objectionable" He added that such contrary to the public interests" and should be limited and restrict ed by taxation"
 Actual revision of the House bill will be undertaken tomorrow by the whole committee, Chairman penrose said. adding that it was the plan to take 1t Up by section Declaring that there had been pleasant and harmonious interchange of views. at the session of the majority memb Senator Penrose asserted the indioa- tions were that these members would vote fairly well together when We come to final decision" While no action was taken to bind those present, he added, substantial prog ress was mads in clearing the at mosphere.''
 MeIion's Suggestions Reduce Yield
 Official treasury figures prepared for the committee show that with the six changes recommended yester- day by Secretary Mellon, the House bill would yield s32sS,455, 900 this fiscal year, Or s16,000,000 less than the House measure in its present form. and s5.790,ooo for the cal endar year. 1922, or $95,500 ,000 less than the House bill.
 Losses from the House bill for the fiscal year would be $250 0O0,0 all through repeal of the profits tax, and gains would be $2S4, 100000. as fol- lows: Corporation tax increase, $160,500,000; transportation, s65,500,- 900; insurance, $5,00O,0 900, and rer- fumery, cosme tics and proprietary medicines, $3,o00,000.
 In the calendar year, 1922, the losses from the House bill would be $510,000, ,o00-$450, 900. 900 profits tax and $60,000,000 capital stock tax and the gains would be s414,5O0, 900, as follows: Increased corporation tax, $267,500, 900; transportation. sl3l, ,0Oo,000; insurance, $10.000, 900, ana perfumery, cosmetics and pro- prietary medicines 00O o00