Evening star., 1921-11-01
MODIFIED SALE TAX
OFFERED BY SMOOT
Senate Adopts Two Amend.
+ ments to Bill Suggested
by Mr.. Lodge.

a modified sales tax proposal was
offered today in the Senate by Senator
Smoot, republican, Utah. 1t provides
for a ! per cent manufacturers tax
on all sales in excess of $4,000. and
turnover tax of one-half of l per cent
on sales in excess of the same amount.
The original Smoot proposal was Inn
ited to a manufacturers sales tax OF
per cent.
Exemptions which would be allowed
from the new manufacturers rate
would include farm products, chari-
ties and hospitals.
VIII Call Proposal Later.
Senator Smoot plannedato call up
later the modified proposal, which
was understood to have received the
approval of some senator's who did
not look with favor on the original
plan.
Immediately after the Senate con-
Vened today it adopted two. amend
ments to the tax revision bill by Sem
ator Lodge of Massachusetts, the re-
publican leader. One would exempt
from taxation dona tions made to
posts of the American Legion and
women's auXiliaries of such posts, and
the other would exempt from taxa
tlnn admissions to amusements for
the benefit of legion posts and auXil-
iaries.
There Vas a four-hour discussion
yesterday of the Reed Amendments
proposing to continue the excess
pFohts tax and to use the proceeds to
aelfay the costs of the five-way ad-
Justed compensation plan. This was
followed by the introduction of an
amendment by Senators Simmons of
North Carolina and Walsh of Massa-
chuSettS. democratic uembers on the
hfaice compittee. proposing payment
OF the bonus out of the interest on the
nation foreign debt.
The latter amendment will not be
formally moved for adoption in the
Senate. its authors announced. until
action has been taken on the Reed
amendment. Meantime Senator Reed
Is delaying formal presentation of his
amendment until there has been full
discussion of the whole question
After spending yesterday discussing
The soldiers bonus the Senate pro-
ce"ded with the tax revision bill last
night with usual celerity. voting
to retain S75,00O,0G. of taxes on cor
porations which had been proposed
Tor repeal and looping off a number
OF the excise levies now in force.
Graduated Tax Accepted.
The first important action was the
adoption of an amendment proposing
Il graduated corporation capital stock
tax at rates of 81 on each $1,000 Of
stock between $1,000 and $4,000, 900.
600. Holding companies in paying
this tax would be, credited with the
amount of the same tax paid by their
subsidiaries.
demonstrating it's former action ap-
proving the present Per cent tax on
pianos and other musical instruments,
the Senate without Il roll call and lit
tie opposition adopted an amendment
by Senator freiinghuysen. republi-
can. New Jersey. repeating this tax
The sections proposing per cent
levy on sporting goods was next
eliminated. compromise amendment
striking it out being adopted.
The Senate got stuck for time on
the cheWlng gum section. but it final
ly voted IS to "a. to repeal this tax,
the existing rate of which is 5 per
cent. and that proposed in the bill.
, per cent.
The Senate rejected an amendment
by senator "adsworth, republican
New York. to repeal the 10 per cent
tax on cameras weighing less than
lro pounds and on lenses for, such
cameras. 1t then rejected motion by