The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-09-01
PARTIAL TAX
ON SALES IS
SHOOTS IDEA
Revision Not Likely Until
Next Year = Inheritance
Tax Increases May be Only
Change Made.
SMOOT WELL INFORMED
BY MARK SULLIVAN

ate finance committee begins today to
hold hearings on the tax bill. What
will come out of these hearings, and
out of the Senates consideration OF
the tax bill, which the House has al
ready passed, is one of Washington's
mysteries.
Senator Smoot mas proposed what is
practically an entire new measure.
which includes a partial sales tax. II
Senator Smoot dedicates himself to
pushing his measure it may go long
way.
The work he has put upon the SUBJ
ject of taxation and his knowledge of
the governments finances is such that
anybody who undertakes to oppose him
in debate takes on a heavy job. Sena-
tor Smoot has given more time TO the
study of the minute phases of the
subject than any other senator.
Penrose May Step Out.
But how far he speaks for the
finance committee as whole is diff
cult to predict. The chairman of the
committee is Senator Penrose of Penn
sylvania, fortnight person, who
under normal circumstances. would
speak for the committee in way that
would not leave any doubt as to what
the committee is going to do.
Senator Penrose is a man who under
ordinary conditions, knows what he
wants and goes after il by the shortest
route. But Senator Penrose's health
is not good and there has come to be
a situation in which it has occasionally
appeared as If Senator Penrose meant
TO turn his mantel over in some degree
TO Senator Watson OF Indiana.
Officially the second man on the
finance committee, is Senator McCum-
Der of North Dakota. but he has shown
no public disposition to assume any
leadership of the committee in the
matters of taxation
Smoot Best Qualified.
Senator Smoot undoubtedly has the
best information and has done the
hardest work and if these things
qualify a senator to be spokesman of
the committee. then he would be it.
Nevertheless, at this late date, Sem
ator Smoot will encounter a world Of
difficulty in pushing his measure TO
adoption by the senate.
The opposition to any form of sales
tax is very strong, especially in the
lower house. Everybody was known
that Senator Smoot believes in the
sales tax.
He has always expressed calm con
fdence that sooner or later our necessi
lies will bring us to il. Neither has
there been any doubt that many lead
ers. both in congress and in the ad
ministration. believe in the sales tax.
But most of them have also believed
that for the present it is impracticable
The mass of feeling in the lower House
is strongly prejudiced against it.
Would Tax Manufacturers.
Senator Smoots proposal introduce:
the tax in its least Objectionable form
His proposal is a tax of three per cen
on manufacturers. Politically. the
manufacturer is less a source of con
cern to the congressman than the re
tail dealer.
There are fewer OF him It is con
sidCration for the retail dealer tha
causes most of the opposition to th'
sales tax in the lower house and alst
the theory that the income tax is paiC
chiefly by tile rich and we'll to do
while sales tax must be shared b!
all
Another proposal for fundamental
change in taxation which has quite a
much backing as Senators Smoot'
proposal is the theory that the fedora
inheritance taxes should be increased
II the present tax bill is thrown wild
open and if amendments generally ar
invited we are likely TO see a stronI
effort to increase the federal inherit
ance taxes and reduce the incom
taxes in proportion.
Copyright 1921 by the New YorI
Evening Post, Incl