Evening star., 1921-09-10
TAKES.UP TAXB|LL /
SECTION BY SECTION
Senate Committee. to Scale
Internal Revenue Provisions
to 5000, ,ooo, 900 Total.

Revision of the House tax bill on a
basis of government needs of $3.200.-
100000 from internal revenue this
fiscal year was begun today by the
Senate finance committee. The meas
ure was taken up section by section.
the committee having failed yesterday
to reach any agreement on the high
points.
Developments yesterday led to a
general belief at the Capitol that the
committee would not have entirely
smooth sailing, but Chairman Pen
rose still was hopeful that the meas
ure could be completed by the time
Congress reconvenes one week from
next Wednesday,.
Chairman PenrOse's Estimate.
Chairman Penrose's estimate is ap-
proximately $10O.0oO.oOO less than
Treasury experts have figured the
House measure would yield, but is the
total which Secretary Mellon has told
the committee will be necessary for
the conduct of the government, pro-
vided the economies in departmental
expenditures agreed upon at the
White House conference last month
are effected.
Neither the whole committee nor
the majority members in conference.
reached any agreement on specific
reviSions proposed by Secretary Mel
Ion. There was prolonged discussion
of some of them at both sessions. with
the democratic members launching
their fight against. retroactive repeal
of the excess profits tax, reduction of
the income STrtaXes to 25 per cent
and restorati bn of the transportation
n h. hay
Views of Senators.
After the meeting of the majority
members, Senator Penrose said that
while the drift of sentiment among
the republicans seemed to be in favor
of repeal of the profits tax as of last
January l, the situation was such
that the drift might change in the
direction of repeal as of next Janu-
ary 1. as provided for in the House
measure.
Senator Simmons of North Carolina.
speaking for the six democratic
members of the committee. declared
against retroactive repeal Of this tax
the proposal of Secretary, Mellon to
reduce the income surtax rates from
63 per cent to % per cent, effective
January 1, 1922. He declared that
the 81 per cent maximum rate fixed
in the House bill was too low.
Senator Hitchcock of Nebraska. act
ing democratic leader. issued formal
statement attacking the proposals to
repeal the profits tax and cut the
surtax rates. declaring such action
very Objectionable" He added that
such incomes as 100000 or more were
contrary to the public interests"
and could be Limited and restricted
by taxation"
Says Harmony Prevails.
Chairman Penrose said that it was
the plan to take up the House bill
section by section. starting today.
Declaring that there had been a
pheasant and harmonious interchange
Jority members, Senator Penrose as
serted the indications were that these
members would vote fairly well to-
gether when we come to final deci-
sions." While no action was taken
to bind those present, he added. sub
stantial progress was made in CLEAR
ing the atmosphere.
Official Treasury figures prepared
for the committee show that with the
six changes recommended by Secre-
tary Mellon. the House bill would
yield s3.29S, ,455,000 this fiscal year. or
$16,000,00O less than the House meas
ure in it's present form, and $2,7S5,-
100000 for the calendar year 1922, or
$95,500,000 less than the House bill.
Losses and Gains Computed.
Losses from the House Dill Ior tue
fiscal year would be S25o.o00. 900, all
through repeal of the profits tax, and
gains would be 1924 100000. as fol-
lows: Corporation tax increase, $780,
500 900; TRANSFORMATION, $65,500, 900;
insurance, s5.OO0,O00. and perfumery.
cosmetics and proprietary medicines.
$3,OOOOO0.
In the calendar year 1922 the losses
from the House bill would be $510.-
900. .O0O-s45O.O 900. 900 profits tax and
$6O.OOO,O0O capital stock tax-and the
gains would be S414.5O0.000, as fol-
lows: Increased corporation tax,
67,5OO.OOO; transportation, S131, ,000.-
900; insurance, $10.000.000. and per-
fumery, cosmetics and proprietary
medicines Sc 600 900