Evening star., 1921-10-10
TAX AMENDMENTS
PROPOSING REPEAL
RECEIVE APPROVAL
Majority of Senate Finance
Committee Against Trans
portation Taxes.
WOULD ABOLISH PIPE LINE
AND PARCEL POST LEvIES
Maximum Surtax Rate Of so Per
Cent and Increased Estate
Taxes Also Favored.

Taxes Also Favored.
Amendments to the tax bill pro-
posing repeal Of all transportation
taxes, including those on oil by pipe
line and on parcel post packages; a
maximum surtax rate CT so per cent
and increased estate taxes were ap-
proved today by majority members of
the Senate finance committee.
The majority also approved amend
ments for retention Of the corpora
ton capital stock tax and for repeal
of the two-thousand-do dollar exemption
corporations having annual net in
come in excess of $25,0O0.
A fiat tax of S6.40 u gallon on dis
titled spirits also was agreed upon.
but with a proviso that there would
be u rebate of S4.20 a gallon where
1t was shown to the satisfaction Of the
commissioner of internal revenue that
the spirits were used for manufacture
ing or medicinal purposes.
Excise Taxes Affected.
Excise taxes proposed for repeal
under another amendment include the
rates on sporting goods, chewing
gum. electric fans. thermos bottles.
smoking and hunting equipment.
moving picture films, toilet soaps
and powders. Photographic apparatus
and accessories. furs and perfumes
and cosmetics. The TAX on works of
art would be reduced from 10 to o
per cent. the tax on candy made )
proposed on hotel rooms and Office
furniture Of hardwopds eliminated.
Thus the committee majority not
only approved all Of the recommends
tions agreed upon by Senate leaders
last week, but adopted some on its
own account. The vote on the major
changes was understood to have been
to 4. 1t was said that on the
test vote last Saturday the majority
disapproved by 5 to the proposals
for increased surtax rates and es-
tate taxes. but these matters were
reconsidered today.
Rerubliean support Seen.
= Chairn,Ass-Penrose in announcing
the committee action today. said the
changes, in his opinion, insured solid
republican support for the tax bill.
amended measure could be sent to
the President before the end of the
month.
"The amendments" he said, "are
the result of careful and perfectly
fair and friendly interchange of
In my opinion. in no sense are the
structural principles of the bill un-
dermined. l expect to explain the
situation fully on the floor of the
Senate at an early time.
Commanding practically the unan-
imous support OF the majority party
in the Senate. the bill ought to pass
that body at an early date. l do not
anticipate any prolonged controversy
in conference. so there is every rea-
son to expect the bill to become a
law before the expiration of the pres
ent month"
Party Issue Charged.
Asked if he expected support from
the democrats for some of the new
proposals, Senator Penrose said that
unfortunately the minority appeared
to be making a party issue of the
tax bill.
Repeal Of all the transportation
taxes would be effective under the
amendment on next January i, in
stead of Immediately upon passage
of the bill, as first proposed By the
agricultural bloc.
Treasury experts, meeting with the
changes approved would reduce the
total tax. yield, bat they said the
amended measure would give u fair
margin in receipts over the estimate
Of revenue needed. The liquor tax
amendment would raise only 100000
coo, as compared with the $4,000. 900
estimate on the basis of the pro-
posed 81 fiat tax on all distilled spirits
Irrespective Of tho use to which put.
Loss in Repeal
There also. will be considerable loss
through repeal of oil and parcel post
transportation taxes and the addi-
tional excises, including the per cent
on moving picture Aims.
The tax bill gave way "a the Senate
today to the Panama Canal tolls re-
peal bill, but Chairman Penrose ex-
poets to call it up tomorrow. and
probably will present the new amend
ments at that time.
Senators on tho committee were re-
ported to have lined up on the major
proposals as follows: For-Penrose of
Pennsylvania, Curtis Of Kansas, Wat
son Of Indiana, Sutherland Of West
Virginia and La Toilette Of Wisconsin.
Against-Smoot Of Utah, Calder of
New York. Dillingham; Of Vermont
and McCumber of North Dakota.
Senator Mclean Of Connecticut was
absent.