New-York tribune., 1921-09-20
Tax Bill Fight
On Tomorrow
In the Senate
vsnrose Predicts Passage
4 Two Weeks; Expects
Measure Will Become
! Law Late in October
Opponents Still Active
srusement Charges Under
10 Cents Are Exempted; !;
Hotel Levy Is Stiffened

yyo,-s The TY7cAsas'S " dSssnqtcn SuTedu
WASHINGTON, Sept. Ie.-The stage
I .lnnest set for the struggle over the
- revision Hill in the Senate. All
;,s;satiens. are that it will begin Thurs
s,v with, perhaps, skirmish on
Wednesday. Senator Penrose, chair
nan Of the Finance Committee, was
s;rscsed BY the committee at it's meet
nv to-day to report the bill to the
Senate Wednesday at the opening of
tie session.
The committee completed the bill
avs for the actual redrafting and
,urned it over to the experts to be re-
written and prepared for submission.
The experts were directed to prepare
report to be submitted along with the
biT A final session of the committee
viii be held Wednesday morning to
make any last minute corrections or
changes =. may be found essential.
Senator Penrose, in announcing that
tie bill had been completed, said ne
would seek to have it taken up by the
Senate as promptly as possible and
would press it for early passage He
predicted it would be a law by late in
oetsler.s He also predicted that the
sjll would become law with compare
.iyely little change from the form in
which the Finance Committee had
agreed to it. He thinks the bill is
SUBSTANTIALLY improved over the House
bill.
Thinks Three Weeks Sufficient
Opposition to the measure may be
expected in certain quarters" said
Senator Penrose. There will be op-
position to the repeal of the excess
uroats tax and the reduction in sur
taxes. 1t is expressly disavowed,
however, that there is any intention
to delay the measure and, on the con-
.rary, it is stated that every effort
will be made to expedite its passage.
Under the circumstances, it can be
reasonably expected that the. bill
will be passed in the Sente within two
week after it has been taken up for
consideration and it ought not require
more than week in conference, if it
requires that long a time.
1T is entirely safe for me to predict
tina. the bill will be sent to the Presi-
dent in the latter part of October. It
IS extremely desirable to have the bill
passed as soon as may be, in order
that the Treasury officials may have
ample time to frame and promulgate
The rules and regulations under the
nav measure"
TIE Finance Committee to-day made
txoshanges in the bill, both of large
degree of public interest. 1t provided
far ezernption from taxation of all
smvssment admission charges of 10
cents or less. This will cost the gov
ernment about S5,000.000 in revenue.
L also changes the basis of assessing
tie proposed hotel tax.
Change in Hotel Tax
As the committee revised the hotel
hy, it now is 10 per cent on the
entire amount of the charge for a
loom for single person, provided the
charge exceeds $5N day, and on the en-
tire charge for room for two per-
SONS if the charge exceeds So day.
As the committee agreed to it in the
hrst place the tax of 10 per cent was
on the excess over $5 and So. The
new plan is more drastic and largely
Increases the tax, which is to be paid
BY the hotel. In the case, for instance,
Of a charge of So day, for a room
for single person, under the new
plan the tax would be 80 cents,s while
under the plan first agreed on it would
nave been 40 cents, or 10 per cent of
the excess over SIS. In the case of a
charge of 50 day, for a room for two
persons, under the new plan the tax
would be 80 cents, while under the
arst plan of the committee it would
have been 10 cents, or 10 per cent of
the excess over $S.
Senator Reed. og Missouri, offered
ms proposition for a hotel tax and it
commanded strong support in the com
nIttee. 1t applies only to transient
'usiness. One Senator on the commit
ee said the supporters of the tax