Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-07
Leaders Believe the Program
Decided Upon viii Close
the Principal Gap Within
the Party Ranks,
SALES TAX PLAN OF
SM00T IS REJECTED
Utah Senator Serves Notice
That He Will Speak at
Length on His Proposal
Some Time Next Week,
lBr The Assoeiated Press.l

Washington, Oct. 6,-Republican
senate leaders, in conference to-
day. agreed upon tentative tax
revision program which they be-
lieve will close the principal gap
within their party ranks in this
senate and prove acceptable to the
republicans in the house.
Main points in the program are
an increase in the maximum sur
tax rate from 80 per cent to so per
cent and repeal of the tax on pas
senger. freight and Pullman trans
portation. 1t is proposed to repeal
the $4,000 exemption allowed corr
porations, which would mean an
additional $6O,O00.000 of revenue
from corporate sources; retain the
corporation capital stock tax. es-
timated to yield S75,000,000 next
year, and repeal the various So
called nuisance taxes, such as those
on soda water, cosmetics. proprie-
tary medicines and the like.
There also was said to have been
q tentative agreement to increase
the estate taxes so as to have "A
maximum Of 40 or so per cent on
estates in excess of 100000, 600.
The present maximum is 25 per
cent on estates of $10,000,000,
Increased Postage Rates.
Most leaders are understood to
have favored the committee pro-
posal for a flat tax of Is per cent
on corporation incomes. but there
was some discussion of a graduated
tax, with the rate 10 per cent on
corporations having an income OF
$4,000 or less yearly. The ques-
tion of increased iirst class postage
rates and other matters are to be
threshed out at a meeting of re-
publican members of the finance
committee to be called in day or
two.
In advance of this meeting, Sem
tors Lenroot, of Wisconsin, and Nc
Cormick, of Illinois, are to draw up
amendments embodying the pro-
posed changes for presentation to
the committee republicans. 1t is
the plan to have the amendments
presented on the floor as commits
Ltt pIbpOSellS :. lllt Il NlCW VI SHPN
diting action on t.l- tax bill.
In framing their program, the
leaders con !dered and rejected the
Smoot ma ufacturers' sales tax
plan and approved the COMMITTEES
proposal to rerlCl the excess prof
its tax as Of next January l. Active
fights for the sales tax and against
repeal of the profits tax are prom
ised. Senator Smoot gave notice
teeay he would $. eak at length on
his plan next week.
Total To Be -saised.
Senators Lenroot and MeCor-
mick went over the proposed
changes in the bill with treasury ex-
perts today and it was said later
that the total to be raised under
the bill as Tanned would be APP
proXimately the same as under the
original measure, $3,324,O00,000.
The conferences today were pre-
ceded by one bet' en- President
Harding and Senator Lodge, OF
Massachusetts, tn f., publican sem
ate leader, who called at the Whits
House to lay before the executive
the results of the conference OF
senators from western states last
night. 1t was understood the pres
ident indicated desire that every
effort be made to smooth out this
differences between republican
senators so as to hasten passage OF
revenue legislation.