The Birmingham age-herald., 1921-10-06
TAX TANGLE GETS ATTENTION FROM
 ADMINISTERED Senate Gro 70 xk Confer encer s ppbnents of Pc x Measure Con-
 tinue Assaults on It
By Associn-e1 Press

Washington, October 1.-The tangle in Congress over tax revision legis- lation was given the attention of the administration today at a succession of conferences between President Harding and Senate and House lead CTS. What position the President may take regarding substitution of a sales tax for the miscellaneous ex- cesses in the pending bill was not disclosed, those who saw MT. Harding declaring that he was keeping an open mind on the subject for the present.
 Meantime groups in the Senate went forward with conferences on the whole subject and opponents of the pending measure continued their assaults on it. The democrats on the finance committee put in their min ority on which they declared that tn 2 bill neither fulflls the promises of the republican party for a simplifi- cation of tax law and procedure nor satisfies the demand of the demo cratic party for 8 complete survey of existing taxes and their modifi- cation and simplification."
 LaFOllette Es,,es View
 Senator LaFollette 6f Wisconsin, a republican member of the finance committee, also filed a minority view, declaring that he was in gen eral accord with the democratic re- port in so far as it criticised the proposals of the majority to reduce the supertaxes upon large individual incomes, to repei-l the excess profits tax and the capital stock tax. to q in to greatly aggregate the existing dis parity between corporation and in- dividual and partnership taxes" He added, however, that he felt the rec concentrations of the minority would do little more than palliate some of the monstrous iniquities of the bill, without curing any of it's fun damental evilss
 There is nothing to be gained hJ the forced and inconsiderate enact ment of the present bill" said the minority report That bill affords no relief to the country. There will be no reductions effective during this calendar year-nine months after the advent to full power of the party which promised immediate relief iron, oppressive war taxes. Practically every change in the rates or repeal S- PA NSNie ta2NtS fS postponed Untfl January l, 1922, and the reductions made after January 1, 1922. are to be accomplished through promised cuts in expenditures that may not materialize, with contingent borrow ings in that event as wefl as certain borrowings to pay the sl70, ,000, 000 estimated to meet saving stamps and Pittman act redemption and eapendi. lures.
 Purpose of Majority
 The purpose of the republican ms jority seems to have been centered upon the exemption of millionaires from the higher surtaxes and the ex- emption of corporate interests and monopolies from the payment ot proper taxes upon inordinate profits In pursuit Of this purpose the com mittee has divided the income tax payers of the country into two classes those who have Incomes greater than $66.000 a year. and those who have incomes less than s66,000 a year
 There are f1,o77 millionaires in the first class and 3,321,6s5 people in the second class. The committee. in it's solicitation for wealth. has accorded these 11,o77 millionaires very sub- stantial relief by she repeal of the higher brackets of the surtaxes. while 3,321.6SS ordinary taxpayers have been given no substantial relief" The democrats gave notice that they would offer amendments to the bill largely increasing the surtax rates on incomes up to and above $500,000; restoring the corporation capital stock tax; reducing the nor mal tax on incomes below $15,O00, limiting the exemptions allowed tc heads of families to incomes below $20,000, and repeating the tax or freight. passenger and Pullman trans portation.
 The pending bill as framed" the minority report concluded, "ls not calculated to promote or protect do mestic commerce, or bring about the stimulation of enterprise or increase the profits from which the federal revenue ought to be raised.
 The bill does not accommodate the fiscal requirements of the govern ment, 1t will merely thrust the ques- tiop into the field of politics and propa ganda. Our revenue system cannot be placed upon a permanent and rational basis by failure tc comprehend the factors In the prob lem and to meet them with resolu- ton and effectiveness. No other ac- tion is worthy of Congress in the present state of the country' Those signing the report were Sen ators Simmons, North Carolina; Will Hams, Mississippi; Jones, New Mex ico; Gerry, Rhode Island; Reed, Mis- soiiri, and Walsh, Massachusetts. ~rr,arn,-rr4