Omaha daily bee., 1921-11-05
Senate Rejects
Sales TMPlan as
Means of Revenue
Majority Even Larger Than
Tha, Against Previous Amend.
ment-22 Republicans
Join Opposition.

Washington, Nov 4-Tke sales
tax as a source OF federal revenue az
this time was definitely rejected to-
day by the senate, but there was
further evidence that II was the puE.
pose OF republican congressional
leaders 10 bring Il forth later as
means OF raising funds TO finance the
proposed "iiye-way" plan for adj
lnsted compensation for former serv-
ice men.
The majority today against the
Smoot amendment TO the tax revi-
sion bill proposing a business sales
tax OF one-hali OF ! per cent was
even larger than was that last night
against the Smoot per cen, manu-
iaelurers' sales tax. The vote to-
day was 10 TO rs as compared to IS
TO Is last night.
As was the cast with the manufac-
turers tax, the democrats voted
solidly against the business tax. They
were joined by p republicans, three
OF whom-Fernald OF Maine. Good
ing OF Idaho, and Reyes OF New
Hampshire-voted for the manufac-
turers' tax. Six republicans who
did not vote last night-Brandegec.
Connecticut: Calder, New York;
Dillingham;, Vermont; Hale, Maine;
Harreld, Oklahoma, and Johnson,
California-supported the amend
ment today.
Less Than Estimate.
Three republicans who supported
the manufacturers tax did not vote
today. They were: Edge, New Jer-
sey; Ernst, Kentucky, and Warren,
Wyoming. Counting senator's who
were paired, it was estimated that
the maximum vote, which would
have been cast for the sales tax was
81, or some six less that it had been
estimated would support it. Some
senator's thought that the debate re-
suited in the loss OF some votes.
81 The senate continued considera-
ton Of the tax bill at session to-
night, but with the soldier bonus
and other important amendments
yet to be disposed OF, republican
leaders abandoned hope for passage
Of the bill this week. They sought
TO obtain unanimous consent for a
final vote at 8 p. m. Tuesday, with
time limited after 3 p. m. Monday,
but the plan fell through, after some
debate.
Several senators, who want to go
home to vote in local elections, OBJ
jected to a vote on Tuesday, and
asked that some hour on Wednes-
day be fixed. There seemed pros
poets of an agreement on this, but
Senator Jones, democrat, New Mex
leo, protesting against the limiting
of debate, objected to the agree
inent as drafted. This ended the eff
fort to obtain unanimous consent for
a vote, but negotiations to this end
probably will be renewed tomorrow.
4 Continue Auto Tax.
Urging his sales tax amendment,
Senator Smoot told the senate that
since . sales tax was to be adopted
in connection with the soldier bonus,
he thought it would be wise plan
to put it into effect now, so as to
determine what rate would be neces-
sary to yield the money needed.
An unsuccessful effort was made
tonight by Senator Townsend, re-
publican, Michigan, to have the 8
per cent tax on automobile trucks
and wagons repealed. The senate
voted, IS to n, against reconsidera-
ton of the committee amendment,
proposing to continue this tax.
Amendments by individual senators
then were taken up, under tacit
agreement that the session tonight
would continue until late hour.
Without 4 record vote the senate
adopted an amendment by Senator
Jones, democrat, New Mexico, re-
curing corporations in making out
their income tax returns, to show
the dividends declared during the
year for which the return is made.
Its purpose, the author explained,
was to prevent the possibility on
profits