Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-10-20
Farm Bloc
Under Fire
In Senate
New Hampsh;- So, MAn teny.
on.'' svM w. !. ..'ss,SLN ges
S%ao''',n,s NY R;,h" '''"
Says Capital on Strike
By ARTHUR SEARS HENNING
Chicnxo Tribune Omaha leo Ieased Wire.

Washington, Oct. l9.-With Sena-
tor Moses OF New Hampshire assail-
irg the agricultural bloc for die
,ating legislation to soak the rich"
and challenging senators iavoring
the Smoot manufacturers sales tax
TO vote as they think" the senate
today resumed consideration OF the
federal tax revision bill.
Chairman Penrosc OF the finance
committee now thinks that the bill
can be passed by the senate next
week, but unless the conference
committee which will reconcile the
senate and house measures acts with
unusual dispatch, the bill is not likely
to become law much before the mid
die OF November.
Senator Moses professed to dis
cover in the agricultural "bloc"
new invisible empire" which he
dubbed the Ken-Kap-Klan in honor
of Senators Kenyon and Capper,
leaders Of the farm group.
Should Keep Pledges.
After quoting from the republi-
can and democratic platforms Of
1920, which promised the people
relief from war taxes. simpler tax
laws and laws fit for peace, so that
wealth would not be withdrawn
from productive enterprise, he said:
"The reaction to these demands,
these promises, is now before us in
multiplex form. First, that of the
revenue bill as it came from the
house; second that of the bill as it
came from the finance committee
here, and third, that of the amend
ents forced upon committee recogni-
ton by that division of the invisible
empire which now seems to be rul.
ing US and which may be styled, l
hope without irreverence, as the
Ken-Kap-Klan. And in this latter
connection l wish to record myself
as standing with the senators from
Indiana as member of the republic
can bloc" which meets so seldom
and whose opinions are apparently
OF little consequence.
Capital on Strike.
"This measure is plainly drawn
under the inspiration of the inspiring
slogan soak the rich l hold no
brief for the rich; neither | or OF
my kin have. ,eYer~stood within their
circle. But / can not help thinking
that the rich may learn from much |
buffeting, even as Peter the Great
learned from the repeated assaults
of Charles XII, how to fight. In
deed, sir, they have already learned.
Capital has gone on strike.
There is point at which taxation
of the rich reaches its saturation
point. This point is variously esti-
mated by both expert and by gen.
cral opinion to stand somewhere be-
tween Is and IS per cent If it is
increased the rich-that is to say,
those possessing capital-betake
themselves and their accumulations
from the field of endeavor and enter
into clustered retirement, where tax
exempt securities afford more ample
and complete surcease from the inn
portunities of the tax gatherer."
Favors Smoot Plan.
Senator Moses observed that the
agricultural "bloc" had taken care
to reduce surtaxes on that class Of
incomes in which congressional sal
aries fell. He advocated the Smoot
amendment providing 3 per cent
tax on manufa cturers sales.
That proposal wipes out all the
nuisance taxes which have burdened
our people from the child with his
base ball to the aged with his medi-
cine bottle" said Senator Moses. 1T
places taxation upon incomes at a
point where accumulated resources
will not 60 into the cave Of hiding
afforded by tax exemption, but will
once more march boldly into the
field of expanding commercial en-
terprise. And, as best of all its pro-
visions, it provides in the sales tax
which the senator proposes, fruit
tul source of revenue, easily COL
lectable, payable at frequent stated
intervals and bearing with equality |
upon all the people. 1t is based upon
what | regard as one of the safest
indications of mans ability to pay,
namely his ability to buy"
Action on the question of tax ex-
emption for foreign traders was de-
terred until tomorrow after Senator
LaFollette of Wisconsin and
number of democrats had severely
assailed the PROPOSAL.