The New York herald., 1921-09-18
WHlSKEY LEVY ENDS
SENATE TAXREV|SION
Calder Amendment to Bring in
60 or 80 Millions Of the S3,-
4OO,OOO,OOO Revenue.
,2.75 BEER FIGHT LOOMS
Senator to Redraft Feature
for Committees Final Vote
on Bill Wednesday.
p2.75 BEER FIGHT LOOMS
s1eeia, Despatch to THE New York HERALD

Special Despatch to THE NEW York HERALD
New York Herald Bureau.
Washington, u. c., Sept. IL.
After adopting a whiskey tax amend
ment expected to yield from $60.000.-
900 to $So.0o0.oo0 annually, the SEN
ate Finance Committee to-day COM
pleted revision of the House tax bill.
The bill. designed to carry out the
Republican campaign pledge to reduce
taxation. will be ready to receive the
'reconvenes on Wednesday.
AS amended by the Senate Finance
Committee the measure. it Is esti-
mated, will yield an annual revenue of
approximately s3,40o. 100000. The bill,
as 1t passed the House, would yield
s3.sf4.455.o0 in the current fiscal
year and $3,2ss,455. 900 In the calendar
year 1922.
The whiskey tax amendment was
offered by Senator Calder OF New
York. 1t would Impose tax Of s6.4o
a gallon on all whiskey withdrawn
from bond for non-hevcrage. medicinal
or other purposes except for utiliza-
ton In industry. The vote of the COM
mittee was to 3. It Is designed to
give the Government revenue from
the large quantities OF whiskey that
annually come out of bond
After the adoption OF the amendment
the committee engaged In considerable
discussion of It's phraseoiogy. some mem
bers contending that 1t might affect pure
alcohol Senator Calder was asked TO
perfect 1t. which he promised to do. He
expects TO submit II again in perfected
form. probably on "Wednesday. when
the committee will hold a meeting to
vote finaily on the bill as whole.
No vote was taken on Senator Cal
der's amendment to levy a tax OF IS a
barrel on beer containing not over 3.75
per cent alcohol Senator Calder pre-
sented the amendment, but some mem-
bers of the committee, while Indicating
sympAthy with its purpose. were dis
satisned with the phraseology and
feared II might be unconstitutional
In view Of this attitude, Senator Cal
der did not press II to vote, but gave
notice that he would redraft It and
bring It UP on tho floor OF the Senate
whom the tax bin u considered. Indi-
cations are that II will precipitate n hard
night because radical "drys" view II as
an effort to legalize the manufacture
Of 2.75 beer
My amendment with reference to dis
titled spirits does not affect alcohol"
said Senator Calder. Alcohol pays
s2.2o gallon. and this Is left un-
changed by my proposition.
What am seeking to do Is to I'm
pose a $40 tax on all distilled spirits.
such N whiskey and brandy, which
when Withdrawn may be used for bever-
age purposes Last year there were
s4.0o0.000 gallons OF whiskey with
drawn. or about 100000 more than the
year before. Most OF this was with
drawn for medicinal purposes. but In
fact was finally used for beverage pur-
poses. shall perfect the amendment
and II will go into the bill. II ought 10
Increase the revenue $50. 900. 900 to $780,
000,oo year. As to my amendment
imposing a tax OF IS a barrel on beer OF
2.75 per cent alcohol or less, shall
offer that on the fioor after I have per-
fected IT.
The substitute bfli TO simplify reve-
nus issisgetion and impose tax OF
per cent on manufacturer, thereby
eliminating all nuisance" taxes. was
formally presented to the committee thin
afternoon. Mr.. Smoot explained It's pro-
visions for an hour and n half. Few
members were present and vote to
substitute It for the pending revenue
bill was deferred until next week.
Some sentiment In the committee Is
favorable to the Smoot plan. but as II
stands to-day the substitute will be
rejected.