Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-09-29
WATSON, CURTIS
DEPENDED ON TO
LINE UP SENATE
Problem to Hold Republican
Members in Line on
Tax Bill.
Special to Indiana Daily Times
and Philadelphia Public Ledger.
Ev ROBERT RARRY

BY ROBERT BARRY.
! WASHINGTON, Sept 29.-The farmer
bloc" in the Senate Will make an effort
| TO tear the Administration tax bill to
| pieces. 1t is opposed to the continuance
of the transportation tax. It does not
want the excess profits levies repealed
| nor the higher brackets on individual in
comes touched. 1t might even go so far
as to support the radical amendments
proposed by Democratic members of the
Finance Committee.
Senator Kenyon. Republican, Iowa,
chairman of the agrarian group in the
Senate, has issued a call for a confer
I ence on Saturday. An effort will be
made there to Z obtain agreement for
unity of action Oh the tax bill. Senti-
ment was said to be all but unanimous
in support of the McNary amendment t.
repeal all transportation taxes The
leaders Of the bloc" believe every pos
slble reduction Of freight and passenger
rates should be made. The Secretary Of
the Treasury and the Admin stratiOn
forces in Congress were no less eager to
repeal the taxes on travel and shipping,
but were unable to recommend a loss Of
$3.50, 0OO, 900 IN revenue.
WEST AGAINST REPEAL
OF EXCESS PROFITS TAX.
If the Democrats repudiate the recon-
mendalons Of the Wilson Administration
and stand in opposition to repeal of the
excess profits taxes, the farmer bloc
would be urged 10 support an amendment
10 continue that form Of taxation. There
has been an insistent clamor in the West
against the repeal of the tax. The Mid
western group In the House forced the
Republican caucus to abandon its plan
of making the repeal retroactive to Jan
I, 1921. Republican Senators from the
same section would so much farther.
Senator Leuroot, Republican, Wiscon-
sin, is not a member Of the agarian group,
but in the matter OF tax revision he hnds
himself in close accord with them. They
are inclined to support his amendment
which would tear 20 shreds the Admins
tration program for repeal Of surfaces
above so per cent on industrial incomes.
He would provide graduated levies up &c
30 per cent on personal incomes Of 500,
600 or more
COLLECTION POINT"
on INCOMES REACHED.
Decision TO repeal surtaxes above 80 per
cent--adreeting only incomes Of seSo00 n
year or more-was suggested by Score
tary Mellln after prolonged consideration
Of the whole question by experts Of the
Treasury Department The higher sur
taxes were not yielding revenue The
treasury authorities learned from actust
conditions that there was after all
collection point" In income taxes. beyond
which 50 was not possible 70 60 with any
reasonable hope Of gaining revenue.
Instead OF turning over 20 10 60 per
cent Of their incomes 10 the Government,
rich men made heavy Investments of tax
exempt securities issued by State, county
and municipal officers. The repeater was
defeated as not being IN any sense a lift
Ing OF the rich mans burden since the
$4,000 900 600 Of tax-e1empt securities
now IN circulation already had offered
ready method Of avoiding the tax
PROBLEM TO HoGD
LEADERS IN LINE.
There - conside-Eble radical thought
in the senate on tie tax question. AZ
fecting as II does t., purses OF 80 many
voters It IS not difficult 20 gain strength
for vote getting amendments. 1t Is the
problem OF the Administration leaders
70 hold a majority OF tho Republicans IN
line for the bin as 50 came from the
Finance COMMITTEES. Senator Penrose
Peunsy lysnia. did NOT aid the bin any
by bis brusque announcement that no
changes would be tolerated. He was
directing his remarks against the In
come and corporation tax amendments
proposed by Senator Gerry. Rhode
Island. and walsh, Massachusetts, Now
he has a Republican break on his hands
In this, as IN all recent fights IN the
Senate, the Administration IS relying on
the two war horses Of the Republican
organization, Senator Watson, Indiana.
and Curtis, Kansas.--to whip Senators
into line They have a hard task but
with many Republican Senators asking
favors for their constituencies IN the
tariff bin, the Administration forces have
strong cards to play Copyright, 1877, By
Public Ledger Company.