Norwich bulletin., 1921-10-07
DRAFT OF COMPROMISE FOR
 TIE TAX REVISION PROGRAM
Has Been Agreed Upon by Republican Senate LeadersTO Close Principal Gap Within the Party Ranks in the Sen and Proposes to Increase Sur-T Rate From g to 50 Per Cent and Repeal Tax Freight Passenger and Pullman Transportation:

-hcpea. of the transportation srd nui- sance taxec would account for appro1I- mately s20o. .ooJ 900 but it was estimated that this would be made up by ths pro- posed additional taxes on corOoratiors and the increased income sur-tax rates
 The conferences today were preceded by one between President Harding and Senator Lodge, the republican senate leader, who called at the White House to lay before the executive the results oi the conference of senators from west ern states which he attended last night It was understood that the president in. dicated a desire that evry effort be made to smooth out these differences between republican senators so as to haster passage of revenue legislation
 Senator Lodge then conferred at the capitol with Senators Curtis, the repub- lican whip; Watson of Indiana. one oi the managers of the tax bill and others The whole program was discussed and the conferees. including Senators Lenrosi and Mccormick, later met with Chairman Penrose of the finance committee.
 Principal points in the program. az drawn by Senators in the progressive group. were agreed upon and 1t was de- cided to have a meeting of finance com mittee republicans, probably tomorrow, | to pass on the proposed amendments While the republicans were in confer ence democratic senators continued their assault on the committee bill. Senator Robinson, referring to the meetings Of republican leaders. declared the pending measure seemed "to be dead in the hands of its friends and that it was proposed now to bring in amendments to meet s-5- stantially all of the criticisms of the bll made by the democrats.
 Senator Simmons. the ranking dasne- crst on the finance committee, said ths | opposition tn the measure had been go pronounced that Senator Penrose had found it necessary to inform the public that the bill was only a temporary one
 The Shoot manufacturers sales tar proposal also got into the debate, with an attack by Senator Lenroot and a dR- fense by it's sponsor. Senator Lenroct said the measure ignored the fundameni- | al principle that taxes should be levie according to ability to pay and also de- cIared that it was impossible of admin istration.
 Defending his proposal. Senator snoct | declared that it could be easily admins tered and that similar taxes now are be- ing collected by the government.
 An amendment to the pending bill. ds- signed to bring in some revenue from taf exempt securities was proposed by Senz- tor Walsh. democrat, Massachusetts un- der it all estate valued al more thar s5o,O00 would pay, in addition to tbs | present estate taxes Is per cent. On that portion of the estate represented by ta2 free securities.
 Under another amendment by Senator walsh. gifts other than for charity. edr- cational ard religious purposes and te the United States or subdivisions for po- litical purposes would be taxed at slid
 irz rate, beginning at 1 per cent, on
 s2O. 900 and ending at 25 per cent. ol SIC, ,0o00,o 900.