The Connecticut labor news., 1921-10-14
COMPROMISE TAX PLAN APPROVED BY SENATE COMMITTEE Vote Said to Have Been 5 to 4 With Mclean, an Opponent of the
 Program Absent.

Washington, Oct. 14-The republican compromise tax revision program was approved this week by majority of the republican members of the Senate finance committee. Reports from the committee room were that the vote was five to four, with one opponent. Senator Mclean of Connecticut, absent
 The first test vote on the compromise, which was an outgroWth of a threatened revolt against the original bill by repub- Gcan senators in the agricultural bloc" was said to have been five to four against. This vote was taken Saturday and those listed in opposition were Chair man Penrose and Senators McCumber of North Dakota Shoot of Utah; Mclean of Connecticut and Dillingham; of Yer mont, Senator Calder of New York was absent.
 Chairman Penrose was reported to have cast the deciding vote for the pro- gram to-day, with Senator Calder voting with the opposition. Senator Penrose will report the amendments to the Senate as majority proposals and he perdicted to-day that they will command prac- tically the united support of the republi- cans. It IS understood, however, that some of the committee members opposing them will continue their fight on the floor and will be supported by a number of senators from the eastern states.
 Differences among the republican com mitteemen were reported to have been one reason for the abandonment of plan, discussed Saturday, to call in the democratic members of the committee with a view to having the amendments reported out by vote of the entire mem bership.
 APPROVED AMENDMENTS
 After disposing of the compromise program, the republicans made some further revisions in the bill. The ap- proved amendments, as officially de- scribed to-day, would provide for:
 A graduated increase from the House income surtax maximum of g per cent, on $66,00O to maximum of 50 per cent on $200,0O0, effective next January l.
 A graduated increase in estate rates from the existing maximum of 25 per cent on $1O0,0OO, 900, also effective next January 1.
 A flat rate of $6.4O a gallon on dis titled spirits, but with a provision for a rebate of $420 a gallon when it can be shown to the satisfaction of the com missioner of internal revenue that the spirits are used for industrial or medical purposes.
 Repeal of the excise taxes on sporting goods, furs, chewing gum, electric fans, thermos bottles, smoking andhunting equipment Toilet soaps and powders and perfumes and cosmetics.
 Repeal of the 5 per cent tax on the licensing or leasing of motion picture films.
 Retention of the House proposal for a flat tax of } per cent. on candy, with elimination of the Senate committee proposal for 10 per cent. tax on candy selling at wholesale for more than 40 cents a pound.
 Retention of the House provision for a reduction from 10 per cent. to per cent. in the tax on works of art.
 Elimination of the Senate committee provisions for taxes on photographic apparatus and accessories, hotel rooms in excess of certain prices and office furniture made of imported hardwoods. These were the only new taxes proposed by the Senate committee.
 WILL LEAVE SAFE MARGIN"
 Treasury experts working with the committee have not yet completed their compilation showing the net result of these changes on the federal revenues, but it was roughly estimated that the total of the Senate committee bill would be reduced by more than $125,OO0,OOO. Chairman Penrose said the amended bill would yield sufficient revenue to leave the government safe margin"
 Repeal of all the transportation taxes would cut off an estimated $22,O0O,0O0 i'll the next calandar year, while elimination of the excise taxes agreed upon would mean further reduction of about $5O, 0O0,000 As offsets against these losses there will be estimated gains of $50000,- 900 from income surtaxes, $30,0OO,OO0 from distilled spirits and $30OOOO0O by reason forepeal of the $2OOO exemption in the case of corporations having income in excess of $25,OOO Retention of the capital stock tax would add another $75,0O0,OO0.