Evening journal., 1921-10-11
PROMISE ON
TAX BILL Wins
Approved by Republican
Members of Senate
Committee
FIGHT MAY GO
TO THE FLOOR

/. WASHINGTON. Oct 1.-The Re
publican compromise tax evision
program has been approved by a
majority Of the Republican mem
bers Of the Senate finance commit
tee = Reports from the committee
room were that the vote was to 4.
with one opponent. Senator Mclean,
OF Connecticut. absent.
The first test vote on the compro-
mise. which was an outgrowth Of a
threatened revolt against the origi-
nal bin by Republican senators in
the agricultural bloc" was said to
have been 5 TO against. This vote
I. was taken Saturday. and those listed
in opposition were Chairman Pen
rose and Senators McCumber, Of
North Dakota; Smoot. Of Utah; Nc
Lean, and Dillingham;, Of Vermont.
jSenator Calder. Of New York, was
4 absent
Chairman Penrose was reported to
have cast the deciding vote for the
program yesterday. with Senator CAL
der voting with the opposition. SEN
ator Penrose will report the amend
ments to the Senate as majority pro-
posais. and he predicted they would
command practically the united sup
port Of the Republicans. II is un-
derstood, however. that some OF the
committee members opposing them
will continue their fight on the floor
and will be supported Dy a number
OF senators from the eastern states.
committeeman were reported TO
have been one reason for the aban-
donment Of a plan. discussed Satur-
day. to call in the Democratic mem
bers OF the committee with a view
to having the afhendments reported
out by a vote Of the entire member
ship.
After disposing Of the compro-
mise program. the Republicans made
some further revisions in the bill.
The approved amendments, as or
! hcially described today, would pro-
vide for:
A graduated increase from the
Y House income surtax maximum OF
. 30 per cent. on $4,000 to a maxi.
. mum OF so per cent. on $500. 600
A effective next January 1.
4 Repeal OF the tax on freight. pas.
4 senger, Pullman. oil by pipe line
express and parcel post transpvr.
4 tation, also effective next January
4 first.
A graduated Increase in estat,
rates from the existing maximum ol
25 per cent. on $4,000 to a maxi
81 mum Of so per cent. on 100000.
II 80. To- 1
Retention Of the corporation cap.
iial stock tax Of one dollar on eacl
4 $1,000 of capital in excess Of $4,000
Repeal OF the $4,000 exemption al
= lowed corporations except where thu
Il net income is less than S25,00O. ef
\ fective next January 1.
4 A nat rate of $40 a gallon OF
distilled spirits. but with a provision
q for a rebate OF $4.2O a gallon whei
&. 1t can be shown to the satisfaction
81 OF the commissioner OF the interna
& revenue that the spirits are used 10
n industrial or medicinal purposes.
= Repeal Of the excise taxes oi
\ sporting goods, furs. chewing gum
4 electric fans. thermos bottles. smok
81 ing and hunting equipment toile
4 soaps and powders and perfume
81 and cosmetics.
Repeal of the five per cent ia.
On the licensing or leasing OF mo
81 lion picture films.
Retention Of the House propose
"A sor a fat tax of three per cent oi
81 ,andy. with elimination Of the Sen
a ate committee proposal for tel
81 per cent tax on candy selling a
IN wholesale for more than forty cent
/. 4 pound.
Retention Of the House prUvisio
n FOR a reduction from ten per cen
20 five per cent in the tax on work
II art. Elimination OF the Senat
4 committee provisions for taxes o
n Photographic apparatus and acces
n sories. hotel rooms in excess Of Ger
81 ain prices and Office furniture mad
\ n imported hardwoods. These wer
I he only new taxes proposed by tn
Il tsenate Committee.