Evening star., 1921-09-18
SMOOT SIMPLE TAX
PLAN TO HAVE VOTE
Committee Likely to Reject
His Sales Tax Measure
Tomorrow Morning.
WHISKY LEVY UNSETTLED
Calder Amendment Would Assess
$6.40 Per Gallon on Medicinal
Distilled LIQUORS.

Senator SmOots proposal for the
adoption of manufacturers sales tax
in lieu of many of the taxes proposed
In the tax revision bill. upon which
the Senate finance committee yester-
day completed work, will be voted
upon in committee tomorrow morning.
which will be offered as substitute
for the pending measure.
The Utah senator laid before the
his simpler tax bill. including the
sales tax, at session of the COM
mittee yesterday afternoon. 1t was
decided to postpone the vote on his
larger attendance of the committee
is expected.
The Smoot bill is said to have been
favorably received by several of the
committee members. who expressed
themselves in favor of less compli-
Gated tax law than either the House
l. II or the Senate committee bill. The
&C ns"nsus of opinion last night, how
ever, was that the Smoot bill would
be rejected by the committee tomor-
row.
Will Take Fight to Floor.
Senator Smoot will not give up the
fight. even though the committee
votes down his substitute He will
do his best to obtain sufficient sup
port for it.
The Senate committee yesterday dis
cussed but failed to reach a final de-
bill proposed by Senator Calder of
New York under which a tax of
$40 gallon would be imposed on all
distilled liquor withdrawn from bond
Tor other than manufacturing pur-
poses.
Senator Calder's whisky amendment
was discussed by the committee yes
terday and. according to the author
and other members. was accepted in
principle. The New York senator said
he had asked to redraft the amend
ment and present it again on Monday,
as it was feared that as originally
worded 1T might be construed, to tax
Industrial alcohol.
Goes Beyond House.
The proposed amendment goes
further than the House provision.
which would tax at the $40 rate
only alcohol liquors diverted to bey-
erage purposes. Senator Calder would
tax liquors withdrawn for medicinal
purposes as well.
The Calder proposal to tax 2.75 per
cent beer was said to have been less
favorably received. as some commit
feemen, were of the opinion that it
would be in conflict with the prohi-
bition amendment to the Constitution
were taken up after the committee
finally had completed it's revision of the
House bill. Last minute changes in
cluded a new provision requiring hotels
to pay tax of 10 per cent on the
amount in excess of IS charged to tran
sients for single room and on the amount
In excess Of IS charged for double rooms
Sh0rt-Term Issue 4ncreased.
The committee approved the House
provision granting the Treasury author
ity to issue $500 900. 900 in short-term
securities instead of $1,000. 600. 900 and
rejected the plan originating with the
House ways and means committee to
create a tax investigative commission to
study and report on possible means of
taxing the income from tax-exempt
state and municipal securities A new
proposal adopted would require the gov
ernment to pay interest at the rate of
one-haf Of one per cent on taxes erro-
neously paid and refunded to the tax
payers.
Chairman Penrose of the committee
reiterated his intention of reporting the
bill to the Senate on Wednesday when
that body meets. and of having it taken
up for consideration as soon as possible