News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1921-10-12
NEW TAX PLANS
ARE AGREED UPON
Agricultural Groups Ideas Ac-
Cepted by Penrose as Amend
ments to Pending Bill.
ENSURES QUICK PASSAGE
Senate conferees Designate Lenroot to.
Draft Sections Agreed Upon-Sur-
tax Rates Modified and Gen.
eral Sales Levy Abandoned.

INSTRUMENTATION leaders of
the senate agreed upon a program by
which the pending tax revision bill
will be rewritten in large measure
and receive the support Of the agri-
cultural bloc and practically all Re-
publican senators. Senator Lodge
went to the White House and laid the
plan before President Harding, who
gave it his approval.
Senator Lenroot (Wis), a member
of the agricultural group, was desig-,
mated to draft the amendments ac-
cepted by the leaders. They will be
presented to the Finance Committee,
which is expected to report them to
the senate as committee amendments
The conference, at which this pro-
gram was agreed upon, was the re-
suit of a meeting of Senators Len
root, Mccormick (IlI), Capper (Kan.l
and other members Of the agricultural
bloc with Senator Lodge. The con.
ference was attended Jy Senator's Len
root, Mccormick, Lodge, Penrose,
chairman of the Finance Committee,
and Watson Ond), member of the
Finance Committee and close asso-
ciate Of the President
The program is understood to meet
the approval Of the house leaders in
the main and the fear that the tax
bill might fall this session because of
the fractional differences over rates has
virtually disappeared. The amend
ments agreed upon follow.
a maximum slrtaN rae Of 20 per
cent in place OF the rae Of 81 per
cent in the pending bill ana the 60
per cent rate If the existing law.
All surtaX yates to be reduced on
incomes below $4,000. The pend
ing bill proposes a reduction on in
comes of less than $4,000 but
slightly increases the rate on in
comes between $4,000 and 100000.
The existing corporation income
tax OF 10 per cent On corporations
having a net income Of less than
$4,000, with an Increase to 10 per
cent on corporations with larger
incomes will be retained,
The corporation stock tax, which
the senate bill proposes to repeal,
will be retained.
Increase to be made in the maxi
mum rate of tax on estates from
% per cent to 10 per cent this
rate to apply on estates above $10,-
100000
Some of the miscellaneous ''nui-
sance" taxes to be repealed.
The Calder amendment to in,
crease the tax on whisky and al
cohol to be adopted.
The excess profits tax will be re
pealed, effective January l, 1922, as
provided in the pending bill.
There will be no change in the nor
NAL tax rates.
The agreement is understood to kill
all prospects at this session of gen.
eral sales tax, such as that proposed
by Senator SmOOt. There is a grow
ing sentiment for this tax in the sen.
ate, but it cannot yet command ma
jority of the Republican votes, nor
does it meet with approval of the
Republican House leaders, who say
hat it is doubtless all right in itself,
Iut they do not believe the country
wants any new forms of taxation.
The changes in the pending senate,
ill as agreed upon are those proposed
~ the agricultural bloc. They were
accepted by Senator Penrose, Senator
lodge and other Republican organiza-
ion leaders with considerable reluc-
ance, especially in the modification
If the surtaXes, They yielded be-
,ause if they had not done so it
seemed likely that the agricu tural
'loc would join the Democrats and
orce the adoption of still higher