Evening star., 1921-11-03
SALES TAXF|GHT
STARTS IN SENATE
Proponents of Levy Declare
They Are Backed by
Forty Votes.

The fight for the sales tax was
launched today in the Senate by Sena-
tor Smoot, republican. Utah. after the
tax revision measure had been per-
fectcd with committee and individual
amendments disposed of. Proponents
OF the sales levy said they went into
the fight with forty woes pledged for
their plan.
Proposal OF Plan.
The plan presented to the Senate pro-
posed a manufacturers and producers
tax of 1 per cent of the sale prices of
every commodity sold, leased or Ii
censed for consumption or use with
This tax would not apply, to sales,
leases or licenses made during any year
in which the total price for which tine
taxable sales, leases or licenses were
made did not exceed $4,000, nor to
sales of refined gold or silver.
The Smoot proposals would provide
for graduated corporation tax of
from 10 to is per cent and for. repeal
next January / of the existing taxes
on all transportation, including tele-
phone. telegraph, cable and radio; on
soft drinks, on admissions and dues:
the special eXcises or nuisance taxes,
and also stamp taxes.
AhenQmentp Iuken Up.
Taking up amendments by indi-
vidual senators, the Senate today ac-
cepted proposal by Senator Pittmaa
democrat of Nevada, fixing a stamp
tax of one cent for each $40 or frac-
ton of that amount of the value of
capital stock, provided the entire value
o. the snare does not exceed S1OO
The change did not affect the COM
mlttee amendment. already agreed to,
placing tax of cents fore each S1OO
or fraction of the par value Of sucn
stock above 500.
Senator Ashurst, democrat, Arizona,
attempted to have attached to the tax
measure provision appropriating
SIG. 100000 for use of the Veterans
Bureau in disqualification of former
service men. The proposition brought
on a discussion of the whole range
OF the veteran question. and Senator
Ashurst finally withdrew the amend
ment after being assured by Chair
man Warren of the appropriations
that deficiency appropria-
ton was in course Of prepare ton and
that an effort would be made to in
clude the Veterans Bureau needs in
1T. Senator Curtis, republican, of
Kansas said he understood the def
cheney measure would be brought into
Congress in "a week or ten days."
Amendment Adopted.
"ltnOul record or dissenting vote
Senator Broussard, democrat, Louis
the Senate adopted an amendment by
lana, striking out a committee amend
ment providing that income received
by any marital community should be
included in the gross income of the
spouse having the management and
control Of such community property,
and should be taxed as the income Of
such spouse.
Senators from Louisiana and eight
western states contended that this
amendment would overturn laws in
their state which provide that the
wife shall have title to one-half of
the family property. They argued
also that the amendment would result
IN increasing the taxes on the fam
lilies by Jumping the entire income as
that of single taxpayer.
Deploring the effort to put a sales
tax through the Senate at this time,
Chairman Fordney of the House ways
and means committee disclosed yes
terday that it was his plan to bring
in a sales tax in connection with the
soldier bonus bill, which he said would
be reported during the coming regu-
lar session Of Congress
I'VE want to reserve the sales tax
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