New-York tribune., 1921-10-29
CorporationTax
OF 15% Voted
BY the Senate
Finance Committees Plan
Adopted After Amend
ments by Senator Walsh
Are Defeated by l Vote
Reed to Offer Substitute
Calder Among 8 Republic
cans Who Opposed Meas
urc on the Final Ballot
rro,. rss 7~4suns's Washington Bureau

WASHINGTON, Oct 28.-The corpo-
rssion income tax Of Is per cent, as
recommended by the Finance Commit
zoe. was adopted by the Senate to-day.
J. yes put into the tax bill by SO to &C.
This action was taken after amend
msnts by Senator Walsh, of Massa-
chusetts, proposing graduated tax
a, incomes of corporations, were all
In. adopted One of Senator Wnlshs
rronosals was defeated, S3 to SO, and
another by the same vote.
The effort of Senator Walsh proved
40 nearly successful that when the tax
bill goes from committee of the whole
to the Senate proper further efforts will
hs made to supplant the Finance Com
rittee's proposition, and it is close
question whether they will succeed.
Senator Walshs amendment provided
for graduated tax, beginning at 10
n,r cent on net incomes Of corpora-
items not exceeding 100000 and reach
;nr 90 per cent of the amount by which
the net income exceeded 100000. Later
h. added to this proposition that no
corporation, which in 1920 did not pay
an excess profits tax, should pay at a
orsater rate than 10 per cent under his
pisn.
This was defeated, 33 to 50. Ten Re-
pubiicans supported it, Senators Borah,
CAMPER. Cummins, Kenyon, La Toilette,
= IN j
Townsend.
Reed to Offer Substitute
Senator Walsh, after this amendment
vas beaten, modified it by providing
that corporation that did not make
more than per cent for the taxable
vear should not pay more than the 10
per cent rate. 1t also was beaten, 33 to
50. The Republicans who supported it
were Senators Capper. Cummins, Ken
von, La Toilette, Lenroot, McNary, Mel
son' Norbeck, Norris and Townsend.
On the final vote for the Finance
Committee plan the only Republicans
who voted in the negative were Calder,
Edge. Mckinley. Moses, Norris, Freling-
huysen. Johnson and La Toilette.
Senator Reed gave notice he would
offer a substitute when the bib emerged
into the Senate proper, and the whole
frht is likely to be waged over again.
AT the night session the Wadsworth
amendment providing for tax Of so
cents gallon on beer, Sf.20 gallon
on,wines and S6.40 gallon on whiskey,
manufactured, imported or sold for
medicinal purposes, was adopted with
out q record vote after it had been
amended so as to provide for double
rates on such liquors unlawfully di-
yerted for beverage purposes, the tax
20 be paid by the person responsible
for the diversion.
Capital Stock Tax Up
The capital stock tax was next taken
I'D. Senator Reed said he had an
amendment to offer, and suggested the
Senate recess until tomorrow. This
was done.
In speaking for his amendment Sem
ator Walsh stressed the point that
whereas the Senate had repealed the
excess profits tax, according to the bill
as it now stands, fiat tax had been
proposed on the net income of corpora
tons, and the result would be that
large numbers of corporations would
have their taxes increased so per cent.
Instead of relieving many corporations,
ne contended, the Finance Committee
plan would work hardship on large
number.
Senator Simmons protested against
what he charged was the injustice of
the Finance Committee plan Of xeplac-
ing the excess profits tax with is per
cent corporation income tax.
Senator Lodge voiced opposition to
Increasing the taxes Of corporations
which were making q low rate Of net
income and pointed especially to real
estate operations. He did not indorse
the Walsh plan, however.
After disposing of the corporation
income tax, the Senate proceeded to
consider the estate tax. The highest
rate in the Financa Committee estate
tax plan was so per cent on estates ex-
eeeding S100,000,O00.
Wadsworth Hits Estate Tax
Senator Wadsworth, of New York,
strongly objected to the high rates
proposed by the Finance Committee.
He declared they amounted to econ
tscation." He pointed out that he had
been informed by the attorney for the
comptroller's Office of New York State
That in many instances q New York
residents estate was subjected to in
herltance taxes in seventeen or eigh-
teen states.
Senator Wadsworth held che estate
TAX should largely be reserved to the
states as a source Of revenue Senator
Lodge Endorsed this view and long de-
pate on Inheritance taxes followed.
The debate resulted in the adoption,
to Is, of the compromise agreement
70 increase the present maximum rate
~ 25 per cent on all that part of an