The New York herald., 1921-10-11
SENATE COMPLETES
TAX BILL REVISION
ideas of Agricultural Bloc
Adopted by Finance
Committee.
FIGHT OVER SURTAX
House Will Seek COmprO-
mise on so Per Cent.
Income Levy.
REPEAL NUISANCE TAXES
Proposed Levy on Hotel Ac-
commOdations Also to Be
Eliminated.
REPEAL NUISANCE TAXES
special Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., Oct. 10.


New York Herald Bureau,
Washington, ID. c., Oct. 10.
A complete programme for revision
Of the tax bill in accordance with the
ideas Of the agricultural bloc headed
by Senator's Mccormick (IlL), Lenroot
(wis.) and Capper (Kan.), was ap-
proved at a formal meeting Of tho
Republicans of the Finance Commit
tee to-day. Senator Penrose (Pa.),
chairman, will offer the amendments
in the Senate in behalf of the commit
tee.
There seems no question Of their
approval by the Senate and Senator
Penrose predicted the bill would pass
the Senate not later than November l..
The House is likely to make some
changes in the programme, particu-
larly with reference to the maximum
surtax rate on incomes, which the
Senate Republicans have now fixed at
80 per cent. and which House leaders
insist should remain at 80 per cent.
as passed by the House and originally
reported by the Senate Finance Com
mittee
Republicans on the Finance Commit
tee approved the so per cent. surtax rate
by vote Of to 4. Those who believe
the maximum rate of 65 per cent. in
the existing law should be cut down to
SO per cent. and who voted against the
30 per cent. proposal were Senators CAL
Ger(N. W. Dillingham; (Vt.). Smoot
(Utah) and McCumber (No. Oak. J..
Senator Mclean (Conn.) Is also opposed
to the so per cent rate, but was absent
Senators Penrose. Watson (Ind.), Cur
It's (Kans.). Sutherland wv. va.) and
La Toilette (Wis.) voted for the SO per
cent rate.
Senator La Toilette is probably the
cnly Republican who would have voted
for 1t had 1t not been for the fact the
Republicans Of the agricultural bloc and
the Democratic Senators were planning
to unite on the floor and force 1t into
the bill. BY accepting the so per cent.
.ate the Republican leaders preserved
the appearance Of party harmony.
AS approved to day py the Rerubli-
cans of the Finance Committee the pro-
gramme of amendments is.
Readjustment of income surtaxes
with general reduction all along
the line from the present law and a
maximum of 80 per cent, on incomes
in excess Of 100000 instead Of SO
per cent. as provided in the bill as 1t
passed the House and was reported
by the Senate Finance Committee.
The present maximum is 65 per cent.
Repeal Of the various nuisance
taxes including those on sporting
goods, showing gum. electric fans.
thermos bottles. smokers articles,
hunting and sporting apparel toilet
soaps and soap powders. furs. per-
fumes and cosmetics.
Elimination Of the proposed tax
on hotel accommodations.
Repeal Of the transportation taxes
90 take effect january /. 1929. in
cluding freight and passenger taxes
Pullman car taxes and those on ex-
press. parcel post and oil by pipe
line.
Restoration of the tax on capital
stock Of 81 each 1000 of so much
of the fair average value OF the
stock as is in excess of $4,000. This
was retained in the House bill, but
had been previously stricken out by
the Senate committee.
Retention of q straight 3 per cent
tax on candy and elimination OF the
10 per cent. tax on candy above 40
cents pound.
The present graduated rate on es-
tates up to $4,000, 900 is retained.
and the new plan imposes tax of
80 per cent. on the part of an estate
between s15,000.0o0 and $4,000. 900.
35 per cent on the part between $685.
100000 and $50. 900, 900, 40 per cent.
on the part between $50, 900, 900 and
$100.000,000 and so per cent. on the
amount in excess Of S100.000,00.
Twenty-Five per cent. is the maxi
mum rate In the existing law.
Increase in the distilled spirits tax
10 s6.40 a gallon. with the provision
that there shall be rebave OF $4.2O
gallon wherever 1t is shown the
spirits have been used for manufac-
turing or medicinal purposes.
Abandonment of the plan to put
an excise tax on Photographic ap-
paratus and accessories.
Repeal Of the s per cent tax on
the licensing and leasing OF motion
picture films.
Reduction of the tax on works OF
art from 10 per cent. to per cent.
withdrawal OF the plan to tax
office furniture made Of imported
woods.
Representative Fordncy (Mich.), chair
man Of the House Committee on Way
anu Mcdnf, Cdittu OH GtCrttdTy VI tfi'
Treasury Mellon to-day and later h,
reiterated his statement that the Hous'
viii not agree to the so per cent. surta,
on large incomes.
AS reported in dispatches to THE New
YoRK HERALD last week. II Is probabl
a compromise between the House ant
Senate will be reached as to this surta,
rate. 1t is now being suggested that A.
per cent. will be the final figure that th'
conferees OF both houses will accept.
Some of the other changes In the Sen
ate bill included in the new plan ar
approved by Chairman Fordney. He wa'
pleased with the repeal Of the transpor
tation levies and many of the nuisanc'
taxes. II is not expected the increase,
rates on estates will be opposed serl
ously by the House.
In order to reduce the surtax on larg
incomes below so per cent. the Hous
leaders are prepared to make conces
Mons to tho Senate- - some OF the othe