The Washington herald., 1921-11-04
Senate Rejects Measure
After Debate, by 43
To 26 Vote.
DEFEAT REvIvES
HOPES FOR BONUS
II Republicans Line Up
With Democrats in De-
feating Amendment.

the Senate last night by a vote of
~ to zs.
The vote came on an amendment to
the revenue bill providing for a / per
cent tax on sales of manufacturers
and producers which would have pro-
duced enough revenue to make possible
the repeal Of all miscellaneous taxes.
but without permitting any material
changes in the individual income and
corporation taxes as already approved
by the Senate.
The roll call on the amendment was
as follows:
Ayes-Bursum. Calder. Edge. Ernst.
Fernald. France, Frelinghuysen. Good
ing, Jones (washington). Keyes, Nc
Kinley, Moses, New. Newberry. Nichol-
son, Oddie, Phipps. Poindexter, Short
ridge. Smoot, Spencer, Wadsworth.
Warren, Watson Undiana). Weller.
Noes-Borah. Capper. Curtis, Ken
yon. La Toilette. Lenroot. Mccormick.
McCumber. McNary, Nelson. Norbeck.
Penrose.s Stanfield, Sterling, Suther-
land, Townsend. willis. Republicans :;
Ashurst. Broussard. Craraway, Fletcher.
Gerry, Glass. Harris, Heflin. Jones
New Mexico), Kendrick. King. Nc
KelIar, Myers. Overman. Pittman,
Pomerene, Reed Sheppard. Simmons,
Stanley. Swanson. Trammen, Walsh
(Massachusetts). Walsh (Montana), &,
Watson (0korgia), Williams
After the adverse action. Senator
Smoot offered his alternative amend
ment providing for a general turnover
tax of. q Of 1 per cent. Action on this
amendment was deferred until today.
Its rejection Is expected by about the
same vote as that on the manufac-
turers and producers tax The turn
over tax would produce about $780,
eOO, 900 in revenue as against $685.
900. 900 from the other.
II Republicans Oppose Bill.
only Republicans voted for the man
ufacturers and producers tax. while
Democrats solidly lined up against 1t
Seventeen Republicans voted With
twenty-six Democrats in the negative.
The twenty-five Republicans recorded
in the affirmative represented a ma
tority of that party who were present
A significant feature of the debate
was the assertion by several Eepub-
Iicans opposing the sales tax that
they might support ii in the next
session as a means of raising funds
for the payment of a soldiers bo-
nus il other available sources OF
revenue are exhausted
Senator Mccormick. of Illinois, in
a speech against the sales tax, de-
clared that he has received tele-
grams and letters favoring the sales
tax which indicate to him that their
senders were under a misapprehen-
sion as to the effect of the present
proposal.
The chief speakers in the all-day
debate on the sales tax were Senator
smoot, who led the fight for the
proposition, and Senator Lenroot. of
Wisconsin, also Republican. who led
the opposition
smoot Denounces House Members.
Senator smoot denounced House
leaders for attempting to influence
the Senate against the sales tax
.Tt comes in bad grace from any
member of the sHouse to give notice
that the Senate cannot pass legis-
latIon in any form il sees fit" said
senator Smoot. Every day a sales
tax has grown more popular in the
United States, not in any one sec
tion. but from east to west and
north to south. In my opinion at
least three-fourths of the people of
the United States are in favor of it.
Now is the time to pass the sales
tax. / say now. that IL this becomes
part of the pending bill there
would be relief among the people
pf the United States from one end
o the other.
"I have no more question that the
lies tax will become part of the
venue laws Of the country ulti-
ately than that I live"
In explaining his plan. under
hich corporations which have
de small profits in the past would
subject only to 10 per cent fiat
instead Of the is per cent tax,
ator Smoot said this was de-
led to take care Of $4,000 cor
Rtions that did not pay excess
hts taxes during the war.
enator Smoot said that the COM
te revenue bill with his amend
nts would raise 3,421,343,O0O for
fiscal year 1929. The revenue
the current fiscal year ending
e 80, 1922, he said, would be
30.5s3,0O0. These sums, he said.
aid be sufficient to take care of
mated expenditures.
Inator Simmons. Of North Caro-
insisted that there would NOT
sufficient revenue under the
BIT amendment. He quoted an
mate by the actuary of the
esury Department that the pro-
d 10 and is per cent corporation
would yield s526.000.00O during,
ealendar year as against $780,
20 under the fiat is per cent
ir q net loss of s134.00o,0o
~ Majority Oppose Measure.
ator Lenroot, of Wisconsin,
issue with Senator Smoot's
ption that three-fourths of the
of the United States are in
pf the sales tax.
nture to say that that state
cannot be substantiated."
tnator Lenroot T do not
ie farmers organization that
Jared for a sales tax and
~ every farmers organiza-
declared against II. I do not
any labor organisation thar
Ired for the sales tax. II
substantial part of labor
red against IL.
Ills bill when IL Is finally
70 have reasonably ex-
sources Of revenue, then
Bued on Po00 Ttpo.