The Washington herald., 1921-11-03
SENATE WARNED
HOUSE WILL VOTE
DOWN SALES TAX
Fordney Urges Special
Levy to Raise Soldier
Bonus Fund.

Evidences Of increased strength for
the sales tax movement in the Sem
ate caused House leaders again to
serve notice on Republicans in the
Upper Branch Of Congress yester-
day that under no circumstances will
the House accept a sales tax as an
amendment to the pending revenue
Representative Fordney. OF Mich
igan. chairman of the House Ways
and Means Committee: Green. OF
Iowa; and LonEworth. OF Ohio. who
will be the three Republican con-
ferees of the House when the tax
bill is sent to conference. visited
the Senate side Of the Capitol TO
reiterate their opposition TO the sales
tax. They declared that sentiment
in the House is such that IL wouio
be useless to attempt to obtain ap-
proval Of the sales tax at this time.
Urges Sales Tax to Pay Bonus.
Representative Fordney, however.
declared that he will advocate the
raising OF funds for a soldiers bonus
through a special sales tax. He said
il is his intention to incorporate
a sales tax in the bonus bill which
he will introduce in the House at
the beginning of the December ses-
sion. He believes the House may
accept the sales tax in that form.
although a Republican House eau
Gus last year refused to approve a
sales tax which was included in the
original soldiers bonus bill.
The Senate completed considera-
tion Of the committee amendments to
the tax bill and took up amendments
offered by individual Senators. There
were about sixty Of these amend
ments, and slow progress was made
in disposing of them. Neither the
sales tax nor the soldiers bonus will
be taken up until they are out of
the way.
Fails to Pass Bill.
The Senate again held a night
session in attempting to speed up
action. Not only did the Senate
fell TO pass the bill. as some of the
leaders had planned. but il appeared
likely that its consideration will be
dragged out over the remainder Of
the week. The debate on the sales
tax probably will occupy the greater
part of a day. and the soldiers
bonus debate also will take a con-
siderable time.
The general belief Is that about
4 third of the total members Of
the Senate can be counted on to
vote for a sales tax. There are no
Indications that a majority vote is
assured.
The Senate approved committee
amendments relating to the taxing
of insurance companies. Under the
new scheme, life. insurance COM
panies will pay a tax of Is per cent
on their investment income. while
other companies. with the exception
of mutuals. will pay a tax of Is per
cent on their investment and un-
derwriting income. The mutuals will
continue to pay taxes as provided
in the present law.
Raises Limit on War Savings.
An amendment also was approved
which increases from 1000 to 5000
the maximum amount of war saw
ings certificates which can be pur-
chased by one individual.
The Senate rejected an amend
ment by Senator Trammell, of Flor
ida raising from Is to IL years the
age under which the $500 exemp-
tion for dependent applies. Sena-
tor Trammell argued that this
would give an exemption during
the period when many parents are
subject to additional expense. while
their children are In college.