The New York herald., 1921-11-05
SALES TAX BURIED
ON SECOND DEFEAT
SmOOt Plan May BE Dug Up
as Means for Raising War
Bonus Funds.

WASHINGTON, Nov. 4.-The sales tax
as a sourse OF Federal revenue at this
time was rejected definitely to-day by
the Senate. but there was further evil
dence that Republican Congressional
leaders intend to bring 1t forth later
as a means of raising funds to finance
the proposed Five way" plan for ad-
justed compensation for former service
mea.
The majority to-day against the Smoot
amendment to the tax revision bill pro-
posing a business sale tax of one-haf
OF one per cent. was even larger than
was that last night against the Smoot /
per cent. manufacturers sales tax The
vote to-day was 46 to 25, as compared
to 43 to 25 last night
AS was the case with the manufac-
turers tax. the Democrats voted solidly
against the business tax. They were
ioined by twenty-five Republicans. three
of whonl-Fernald Of Maine, Gooding Of
Idaho and Keyes of New Hampshire
voted for the manufacturers tax. Six
Republicans who did not vote last night
-Brandegee Comm. Calder On. ID.
Dillingham; (VtD, Hale (Me.). Harreld
(Okla.) and johnson (Cal. )-supported
the amendment to-day.
Three Republicans who supported the
manufacturers tax did not vote to-day.
They were Edge On. j.. Ernst tKy.)
and Warren (Wyo.). Counting Senator'S
who were paired, it was estimated that
the maximum vote which would have
been cast for the sales tax was 34 or
some six less than 1t had been estimated
would support 1t. Some Senator'S thought
that the debate resulted in the loss of
some votes.
After disposing Of the last sales tax
amendment. the Senate returned to con-
sideration of other amendments and
went into another night session In the
hope of passing the tax bill by to-
morrow night. Whether this could be
realized depended principally. Republi-
can leaders said. on the length Of the
fight over the soldier bonus question and
the time necessary to consider various
amendments proposed by Senator La
Toilette, Republican (Wis.).
Urging his sales tax amendment
Senator Smoot told the Senate that
since a sales tax was to be adopted In
connection with the soldier bonus he
thought It would be wise plan to put
1t into effect now so as to determine
what rate would be necessary to yield
the money needed.
Senator Reed. Democrat (Mo.) said
he saw no reason for delaying enact
ment of the bonus legislation, and In
this connection paid his respects to
Chairman Fordney of the House Ways
and Means Committee and other House
leaders. who. he said were undertaking
to dictate to the Senate what 1t should
or should not do.
An unsuccessful effort was made by
Senator Townsend. Republican (Mich.)
to have the per cent. tax on automobile
trucks and wagons repealed. The Senate
voted SO to 81 against reconsideration
Of the committee amendment proposing
to continue this tax. Amendments by
Individual Senators then were taken up
under tacit agreement that the ses-
sion tonight would continue late.
without q record vote the Senate
adopted an amendment by Senator Jones.
Democrat On NJ. recurring corpora
tions in making out their income tax
returns to show the dividends declared
during the year for which the return
Is made. It's purpose. the author ex-
planned, was to prevent the possibility
of concealing profits.