The Washington herald., 1921-10-06
Conference of Senators
Decides Measure Is
Unsatisfactory.
MANY CHANGES
ARE SUGGESTED
Agricultural Bloc Tells
Leaders What They
Will Accept.
By ROBERT J. BENDER.

By ROBERT J. BENDER.
The so-calIed agricultural bloc
of the Senate. with Republican
Leader Lodge present, held a meet
ing at Senator Capper's home last
night and decided that THE admin
istration tax bill is unsatisfactory
in Its present form.
Alterations were suggested which
Lodge is expected to suggest to the
Finance Committee within the next
few days. Senators who attended
the conference said they believed
the committee would be willing to
consider demands of the agrarian
group
Group Outlines Demands.
Here is what this group decided
to ask for:
Immediate repeal of the transpor-
tation taxes which are held to be
injurious to the farming industries:
Restoration of the capital stock
tax
An increase in surtax rates from
% per cent, the maximum in the
committees bill, to SO per cent.
January ]. 1922.
Repeal of minor nuisance taxes
which still remain in the bill.
Higher taxes on liquor with
drawn from bond.
Opposed to sales Tax.
The Senators discussed the pro-
posed sales tax substitute offered
by Senator Smoot, of Utah, and de-
cided against IL. II was argued
that the tax would be most bur-
densome on agricultural commune
ties.
Those present at the conference
were Senators Capper. Lodge, kel-
IogE Lenroot, Mccormick. McNary,
Harreld. Odio, Sterling and Willis
More of the group would have at
tended il was explained. except for
previous engagements
Delays Clog Machinery.
The Senate has made little prog
ress in it's consideration of the
measure. despite the pressure for
its early enactment. Delays i'm
posed have clogged the entire leg
islatiye machinery. The jam ex-
hibits no signs of weakening. II
rather increases from day-to day.
The growing sentiment in favor
ot the sales tax substitute proposed
by senator Smoot, of Utah, Is caus-
ing concern to leaders. Even Sem
ator Penrose. chairman Of the
FINANCE Committee, processes to
have "an open mind in the sub
iect. At the same time he ex-
PRESSES belief that innovations
should be resisted. President Hard
ing, also, is reported open-minded.
The minority is militant in its
opposition, and gains strength be-
cause its Ideas coincide with those
~ the so-called progressive ele-
ments among the Republicans.
Report of Democrats.
The formal report of Democrats
on the Finance Committee, just
made public, condemns the bill as
favortnE the rich at the expense OF
tn. poor, and as unscientihc and in
adequate.
asThe pending bill, as framed, is
m. calculated to promote or pro-
tect domestic commerce, or bring
about the stimulation of enterprise
a. increase the profits from which
the Federal revenue ought to be
raised," the minority declared.
.Tt does not equalize the Incl
= 5snc. of the tax burden for the peo-
nIa or the business of the coun-
trv 1t does not simplify the COM
nutation of the taxes or facilitate
tbe collection of the taxes. 1t is
NJ Improvement over the present
law II does not fulfill the prom
ICES that have been held out to the
country, nor will II meet the ex-
nectations of the people for relief
from the Determinations, compli-
cations and exactions of the rev.
enue laws which were improvised to
meet the war emergency
surtax Rate increases.
The minority proposes increases
In surtax rates above the 80 per
cent in the committees bill, to rest
most heavily on the larger incomes;
restoration of the capital stock
taxes: reduction Of normal taxes on
incomes below $4,000; repeal of
transportatlons taxes, and other
minor changes.
senator LaFollette, a Republican
member Of the Finance Committee,
expressed himself as in general
accord with the minority ins .
separate report-N
"I, feel. however" he said, that
the recommendation and proposed
amendments TO the bill will do lit
tie more than palliate some of the
nonstrous iniquities of this bill
without curing any of its funda-
mental evils.
"The correct title of the proposed
bill should be an act to untaN
wealth and penalize industry and
enterprise.
LaFoIlette said the one idea of
the bill seemed to be to free indi-
yIduals and corporations of great
wealth from taxation and put the
burden on the backs of others.
Opposed In House.
House Leader Mondell declared
that the proposed sales tax would
meet with ittle favor in the House.
even IL it were adopted in the SEN
ate
Sentiment in the House was
against the sales tax when 1t was
discussed there" he said. IF there
! has been any change. the sentiment
has grown. There are undoubtedly
arguments in favor of the tax as
an emergency. or to raise funds for
special purposes. But the House
passed the tax bill on the theory
that there should be a lifting, and
not shifting. of the tax burden.