The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-09-11
SENATE REVOLT
THREATENED ON
REVENUE PLANS
Republican Group to Insist On
Substantial Relief for Small
Taxpayers. @.=..

Relief for the small taxpayer VIII
be fought for on the Senate floor II
the Finance Committee fails to pro
vide II in the revenue revision bill 1t
nov Is drafting" :.
Plans for the fight were discussed
yesterday by powerful group OF
Republican senators who have re-
VOTED against the Administrator
program, as recommended by Secre-
tary of the Treasury Mellon.
Notice win be served on Senator
Penrose, chairman OF the Finance
COMMITTEES, and others who are sup
porting Secretary Melons tax pro-
posals, that unless the small tax
payer 10 given at least as much re"
lief as provided In the bill as 1t
came from the House, q determined
effort win be made to overturn the
Finance, Committees bill In the
Senate.
Count On Democrats.
A canvass OF the Senate, made by
Senators LaFoliette, McCumber.
Borah, Kenyon and other Republicans.
who are opposing Secretary Melons
program of relief for business as the
first step toward tax reduction, shows
virtually every Democratic Senator
will lineup with the group Of Repub-
leans.
At least Q dozen and probably
twenty Republican Senators will vote
against making the excess profits
tax repeal retroactive, repeating the
capital stock tax, and reducing income
surfaces to as low as Is per cent. Sen
ator La Toilette said yesterday. With
the Democratic Senators supporting
them, the opponents Of Secretary
Melons program would constitute q
majority Of tho Senate. and they
could overturn the action Of the Fl
nance Committee, should the COM
mittee adopt Mr.. Melons program.
Senator Penrose said he expected
the committees bill to be modified
to an extent" In the Senate.
As q result Of Fridays revolt of
several Republican members Of the
Finance Committee, the committee
yesterday passed over all discussion
Of tho questions In dispute and began
consideration OF the administrative
provisions of the House bill.
Senator Smoot. Of Utah. informed
his Republican colleagues he will make
an effort to have the finance commit
tee vote on the sales tax plan before
the revenue bill 10 reported to the
Senate. September Il.
Sm00t 10 OIIoE TNcW blu.
Senator smoot announced he IL re-
writing the bill he offered in the Sen
ate last spring providing for q general
IN, n. % s P s Ss1 &. s osmu m
tee. Should the committee fail to act
on II. the Senator said. he viii propose
II as a substitute for the revenue bill
In tho Senate.
The Utah Senator said his object
was to get q test vote on the sales
tax, with the view TO working for It's
adoption as the principal source Of
revenue later on.
The Finance Committee win not
be asked to vote on the bill recently
proposed by him. Senator Smoot said.
The measure would have repealed all
existing troublesome taxes-the ex.
cess profits tax, transportation taxes
tuted for them an increased corpora
ton tax and q tax Of 8 per cent on
manufacturers sales.
The finance committee yesterday
approved three Of the provisions Of
the House revenue bill The commit
tee tentatively accepted the House
definition Of foreign traders and for
eign trade corporations. The definition
specifies that foreign traders and for
eisn trade corporations that are ex-
empt from American taxation must
have 80 per cent Of their stock owned
by foreigners and that those foreign.
ers must have at least SO per cent OF
their capital invested In the business.
The COMMITTEES also agreed to the
provision making personal service
corporations subject to the corpora
ton tax.
The provision relating to the deter.