Norwich bulletin., 1921-11-01
Soldiers Bonus Bill
 Delays Tax Revision
Senate Devoted Four Hours to Discussion of the Reed Amendment = No Action Was Taken.

W % \ ohVkks
 Washington, Oct. s1.-Ren val of the fight in the senate for the passage of the soldiers bonus bill resulted in a further setback today for the tax revision meas ure. Republican leaders forced night session, but with the bonus bill undis- posed if there appeared to be doubt whether the tax bill could be brought to vote before Saturday, if then.
 There was a four hours/ discussion today of the Reed amendment proposing to continue the excess profits tax and to use the proceeds to defray the costs of the five way adjustedf compensation plan. This was followed by the intro duction of an amendment by Senators Simmons of North Carolina and Walsh of Massachusetts. democratic members on the finance copmittee, proposing payment of the bonus out of the interest on the nations foreign debt.
 The latter amendment will not be form all moved for adoption in. the senate, its authors announced, until action has been taken on the Reed amendment. Meantime Senator Reed is delaying formal presenta- tion of his amendment until there has been full discussion of the whole question. Senator Penrose, in charge of the tax bili said today it was the plan of the majority, to move to lay the Reed pro- posal on the table on the ground that the soldiers bonus has no place in a tax l measure. Majority leaders had not decid- ed, however, what would be done with re- | spect to the Simmons-Walsh amendment, which the authors declared would make the issue cls 4rly one of bonus or no bon | us without raising the uestion of the. con- 1 dition of the public trea sury, which has been the chief argument presented by op- i ponents of the bonus plan.'
 1 Senator New opened the bonus discus l sion today with the declaration that in | his judgmY. the Reed amendment would | be in conflict with the constitution in | that it proposed to tax one class of citi-
 zens for the benefit of another. 1 The contention was denied by Senator Reed, who declared vote to table his
 amendment would be a towards vote" Attacking Secretary Mellon for recom-
 mending delay in action on the bonus measure, Senator Reed declared the l treasury head wals connetted With
 many oppressive and powerful financial
 and industrial institutions"
 The senate was told by Senator Stan ley that despite an overwhelming senti- 1 ment in congres sfor the bonus bill,
 President Harding. had put his foot on | the measure" and ordered the republican
 congressional leaders to abandon it. He | added that with Senator Penrose acting
 as undertaken and the other republicans as pail bearers" the bonus bill was dead. Getting back to the tax bill, the senate adopted a finance committee amendment which would exempt from taxation
 American corporations and citizens in the Philippines and Porto Rico unless their | income was sent to stockholders in the
 United States. It was explained that this
 would place Americans ir those islands
 on the same footing as-traders of oth- ] CT countries.
 Before the senate voted on the amend ment, the finance committee withdrew
 it's proposal to exempt from taxation in-
 comes derived from China by American
 corporations and citizens. fifty per cent of whose business was done in that re-
 public Senator Smoot said it had been decided to let this situation be taker
 care of by the pending Dyer bill. After a sharp fight the senate adopted 32 to 30, an amendmnt to the capita stock section which would permit holding
 companies to deduct from their capita
 stock tax the amount of such taxes paft
 by their subsidiaries. Nine republican! sI joined the democrats in opposing tht
 amendment. They were: Borah, Capper
 Jones of Washington; Kenyon, La Fol
 lette, Lenroot, Sutherland, Townsend ant Willis
 The senate tonight proceeded with tn f tax revision bill with unusual celerity : voting to retain $75,0c0,000 of taxes O f corporations which had been propose e for repeal, and looping off a number C d the excise levies now in force.
 The first important action was tn - adoption of an amendment proposing l. graduated corporation capital stock ta
 at rates of S1 on each 1000 of stoc n between s5,O00 and s3.000000 and s2 pc if S1,000 on all over s3,000.0 Holdin 5. companies in paying this tax would | ,- credited with the amount of the sam l. tax paid by their subsidiaries. J. Reconsidering it's former action al if proving the present five per cent. tax 0 r. pianos and other musical instrument l. the senate without roll call and lit d opposition adopted an amendment ,
 Senat0 Frelinghuysen, repeating tni y tax.
 IT The section proposing five per cen d levy on sporting goods was next elim " mated, a compromise amendment stril is ing out this section, being adopted, le to 30.
 d The senate got stuck for a time 70 the chewing gum section, but 1t final In voted 5 to 24, to repeal this tax, ti Id existing rate of which is three per cen ot and that proposed In the bill two p Il. cent. IL The senate rejected an amendment I lb Senator Wadsworth, republican, Ne l. York, to repeal the 10 per cent tax i'll cameras weighing less than 100 pound is and on lenses for such cameras. It the ce rejected a motion by the same senat 1e to reduce the tax from 10 to per cer
 At 11.2o D. m. the senate recessed u h. til Il a. m. tomorrow.