Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-10-26
Senate Votes to Stop
Excess Profits Tax
After Next july

Washington, Oct. 20-The Senate
voted tonight, 80 to y. against re.
tanning the excess profits tax after
next July ], at the present rates
| The proposal was offered by Senator
Reed, Democrat, Missouri, who i'm.
mediately afterwards proposed reten
| ton Of the profits tax at reduced
| rates.
Four Republicans-Bora Ken.
yon, LaFollette and Norbsck-joinet
/ the solid Democratic minority il
supporting the first Reed amend
| ment.
| Also without a record vote, the
| Senate adopted an amendment by
Senator Trammell, Democrat, Flori
Ga, providing that in case a tax pay.
| er borrows money to purchase OF
| carry federal securities he may de.
i duct i'll computing his net income
only the difference between the
| amount of the interest paid on tbs
! indebtedness and the amount re.
| 0ived in interest from the securities
After the stormy session Of yes.
Nrday, today's was rather calm
! Only one row developed over alleged
| delay in putting through the bill
| That was on the Democratic side
between Senator Wilkins Of Missis.
! sippi on one side and Senators Sim.
mons of North Carolina and Heffir
| of Alabama on the other. Senator
Williams brought the discussion to q
close with the declaration that h5
and the American people were tired
! Of useless verbosity.'
Opening the attack on the pro-
| posal to repeal the excess profits tax
| Senator Reed, Democrat, Missouri
said this proposition was 1.-The most
mOnstrous ever put before the
American Senate
Declaring that on the basis of tho
| treasury estimate of $3.50, 900 in
| profits taxes this year, business con-
Germs would make $1,750, 0O0.06O ex-
cess profits this year Senator Reed
said:
I'VE propose to say to the farmer
who has lost money; to the small
| income Garner who is straining ever,
nerve to make both ends meet: You
must pay taxes wrung from you by
! process Of hardship, but we propose
| to take the taxes off those who have
| made money by making prices sc
high they have deprived you people
of q. large part of your earnings"
| Senator Reed declared the proposals
in the tax bill to reduce the taxes
paid by the profiteers and the very
rich to the amount of $540,000,000 a
year" were written in to redeem
| hedges which he charged were made
by the Republicans to subscribers 10
campaign funds.
This bill" he said, was brought
here with the surtaxes on great in
| comes reduced to 81 per cent, which
deprived the government of $4,000
600 in revenut and left it in the pock-
cts of the extremely rich, and it was
brought here with the excess profits
tax cut out, and that represents the
staggering sum of $450,000 600"
Added to this, he said. the capital
stock tax was elminat ted losing to
the government s75,000,000."
Giving notice that if n proposal to
retain the profits tax at the present
rates was voted down he would offer
an amendment proposing modified
tax, Senator Reed said these PROPOSE
tions would be offered until we de-
termine whether the makers of excc.is
profits are the masters of this Sem
ate
senator Hitchcock Democrat. Ne
braska, told the Senate that the OK
cess profits tax had the same justi-
fication as the graduated income tax
/ He added he could not see why COR
porations making profits above per
cent on'the capital invested could not
pay graduated tax. just as ind,-
yiduals did.
The Senate swung tonight into the
frst of the long threatened night Ses-
sions of the tax revision bill
Before half the senators had set
tied in their seats the committee
amendment fixing the normal income
tax at the present and s per cent.
rates was adopted. Later the COM
mittce amendment increasing FROM
$4,000 to $500 the normal exemption
allowed heads of families having net
incomes of $4,000 or less was adopted
without a roll call.
Senator Trammel, Democrat, Flor
ida, gave notice that he would later
offer an amendment to this section
proposing even greater increases in
exemptions to men of small incomes
and the elimination of the exemption
in the cases Of single mon having in
comes of $4,000 or more a year. AMI
heads of families having ST., ZOO or
more.