New-York tribune., 1921-10-11
elonapronnise ON
Tax Bill Voted
By Republicans
Senate Committee lndorses,
by 5 10 4, Program De-
signed to Placate Farm
Group: Passage Forecast
so P.C.Surtax Authorized
Repeal OF Transportation
Levy Is Effective Jam. |:
Estate Rates Increased

from TAs Tr;e,encS Wa4h3uoton Btsrcuu
WASHINGTON. Oct 10 BY a vote
% to the Senate Finance Committee
Republicans to-day adopted the tax
pian forced upon the Republican lead
ers by the recent revolt of Senators Of
tbe agricultural group against the
original program of the Finance Com
'uittee.
The program agreed to is referred
% generally as the Republican compro-
mise tax program. Features of it are
be repeal of transportation taxes, in
Guiding those on oil by pipe lines and
parcel post packages, a maximum sur
TAX Of 80 per cent, increased estate
taxes and retention Of the capital stock
tax
According to Senator Penrosc, the
action to-day means solid Republican
upport for the bill. Likewise, he be-
lieves it viii expedite its passage and
that it Will go through the Senate and
be sent to the President by the end of
October.
Action Was Unexpected
To-day's action was to some extent Il
surprise, for the reason that Saturday
he committee decided against putting
he surtax rates UP to so per cent.
Senator Penrose then voted against in
creasing them to that point. To-day
Senator Penrose changed front. and
lei Of
vas opposed to some features of the
compromise program, was absent. The
vote on adopting the so per cent surtax
vas TO until Senator Sutherland, Of
West Virginia. arrived. He voted for
g. and thus the day was carried for
he higher surtaXes and for the pro
gram on which the agaran influences
have insisted. Senators Ponrose, Wat
son. Of Indiana; Curtis, OF Kansas: La
toilette, Of Wisconsin, and Sutherland
voted Tor the compromise amendm ent~
while Senators Calder. OF New Yorh:
Smoot, OF Utah; McCumber Of North
Dakota. and Dillingham;. of Vermont,
voted against the increased surtaXes
and other features Of the compromise
The action OF the Finance Committee
Republicans by no means ends the
controversy III the Senate. Some Re
publicans VIII object sharply on the
floor to the higher snrtaXes ana some
- the other changes Democratic
sentiment against certain features Of
tle hill rs hy no means assauged. The
bers OF the original agricultural
"bloC' VIII continue their opposition TO
ny repeal OF thu excess profits tax.
One Of The features of to-day's agree
mont i faf taV Of $40 gallon OF
distilled spirits. with Il rebate Of S4.2O
the spi3its re used for manufactur-
ag or medicinal purposes.
Pcnrcse Confident of SuDnors
go po,,,.t,,.,,, s,,,n,.+ - ~ hil1
co,'.,+,. po,
rose. In other quarters. howeveg, there
5 less optimistic view taken, and
there will s'll be some sharp kepubli-
can criticisms. Say ng ne hoped TO
ave the OiI IN the narGs ol tAe Fresl-
tent By the end OF TINS month, senator
ESnIose addea
ne amen"ments arc the result OF
carefui ana prriec'lY ar ana lrlendl y
interchange oI 'aoEsn, &no't' RepAo-
can senators. IN my opinion. III no
fense are the slruct uIal prncipies O.
lle Dit undermined. eHpect TO OK
iain the SITUATION Ioiiy on the floor
-ae senate ~ an carry tine.
Commanding Pi"cUc"ltF '"e imam
leAs support 0l NAe "s Oh y p@stS IN
''-e senate. tne o1i4 ought 20 pass OA"'
}oHy a1 an cry uaec' oo Nc0 an
.aclpafe any prolonged controversy III
coni erence' 50 lAeIe IS every reason
% e%pecs the niA 10 oecome u" pe-
.9Fe 'ne expiration o. the pfeseA'
faenth. ,..,,
tie lnelcased tna' ne expected Ntlie
democratic support ana oeplored inc
f&cl tnat tney showed an hc4lna'ioh
70 pay poiltlcs Wl'h lhe 'aN measure
becare OF Lcoc oI protests i'oi"
notei n b.. the hotel tax was ellin'-
natec 1o-oa}. - vas uohe on "o'loN
~ senator Na'oeI'
Threat of Farm Group Effective
The f.ct that the Finance Committee
sanuhlican. acted as thev did il dus
6.recri,. IN tbraa+s of = strong bodv o-
Rsnnsjicans of the aerarian element
tna- thev v,auid form = coalition witt
.5e DrFcoc,.ers ana +orce cbaneas II
the bill unless notifications In the
,oe.s,,re. 80 ,,o5a
The following, is summary Of the
program as adopted:
Surtaxes on incomes readjusted
with maximum Of so per cent on in
come above 100000
tstate taxes increased. with pre-
rates on estates retained up TO SD,
vOo,OOJ and imposing 80 per cent OF
estates between Sl5,000,00O and S25,
DVVVoo; 50 per cent between $4,000,
VoV and $4,000, ,0v0; 10 per cent be
1~eea S2V,VOV,OvO and Sl00, 100000, anC
% per cent IN excess OF sl0o 600 900.
i'.eIease ln the tax on distilled splr
~ 30 Sp''V = gallon with proViso tina