The citizen. [volume] (Berea, Ky.) 1899-1958, 1921-10-13
TAX PROBLEMS STILL PACING
CONGRESS
More Discussions with Leaders at the
White House

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White House
Washington, Oct. 1.-THE con-
gressional tangle over tax legislation
is being given the attention Of the
administration between President
Harding and Senate and House lead
ers. Among those who have just
raid visits to the White House were
Senator Lodge, Of Massachusetts,
the Republican Senate leader; Repre-
sentative Mcndell, Of Wyoming, Re.
publican leader of the House; Speak
or Gillett and several other senator's
and representatives interested IN tax
legislation.
What position the President may
take regarding substitution Of sales
tax measure for the House tax re-
vision was not disclosed. Those who
saw Mr.. Harding declared that he
was keeping his mind open on the
subject for the present. II was in
dicated, however, that there was a
possibility he might take q definite
stand in the near future in order to
smooth out the disagreement among
Republican members of Congress on
the subject and expedite the legisla-
tive program.
Opposes Sales Tax
Representative Mondell vigorously
opposed the sales tax proposition.
telling the President that such a pro-
posal had little support in the House.
He declared sales tax schedule like
that proposed in the Senate would
fail to accomplish the reduction Of
tax burdens contemplated by the
House measure and would require an
immense amount of time-consuming
work to put it into practical form.
The Legislative program as worked
out among congressional leaders and
the administration, the House leader
said, provided for consideration at
this session Of tax and tariff legisla.
ton, the railroad financing bill, the
foreign debt funding measure, the
anti-beer bills and bills for road i'm
provement and maternity relief.
Should the tariff bill fail Of final
passage, he added, it would be nee
essary also to pass an extension Of
the present emergency tariff schedule.
While talk Of revolt of progressive
Republicans against the finance com.
inittee tax revision bill and rumors of
alliances between the Democrats and
the progressives to smash the COM
mittee bill are going the rounds. the
Smoot manufacturers sales tax plan
as a substitute for the committee bill
is apparently gaining strength daily.
Many of the senators who early in
the session were outspoken against a
sales tax plan are swinging over to
the plan as proposed by the Utah
senator. This is true Of some of the
progressive Republicans from the
west and middle west, who originally
OF posed the sales tax plan. 1t Is
true also of some Of the Democrats
who were outspoken against a sales
tax some months ago.
A great mass of letters and tele-
grams favoring the sales tax plan is
being sent to the senator's favoring
the sales tax. Senators who favor
the sales tax are taking statements
emanating from leaders of the House
to the effect that the House will not
stand for a sales tax bill with a grain
CT salt. The program, in a tentative
way, has been made to include a
graduated corporal on income tax
ranging from 10 to 20 per cent; fur
ther reduction in the lower surtax
rates on individual incomes, but an
increase from 80 per cent to so per
cent in the highest surfaces; reten-
tion of the corporation capital stock
tax, an increase in the higher rates
Of estate taxes. and repeal Of the
taxes on freight, passenger and ex-
fress transportation.
hairman Penrose's Statement
Emphasizing the fact that the
pending tax bill was Of a temporary
and emergency character, Chairman
Penrose Of the Senate finance COM
mittee, has issued statement saying
that further revenue revision legisla-
ton should be enacted for the next
taxable year, or as soon thereafter as
possible.
Senator Penrose went on record
again as being opposed to the adop-
ton of a sales tax at this time.
Promptness Of action on the pending
bin is necessary, he said, and not
experiments with untried forms Of
taxation.
House leaders are emphatic in their
declaration that sales tax could not
lie put thru that body now.
Several amendments To the tax bill |