New-York tribune., 1921-10-07
Farm Bloc
orces Tax
Bill Changes
Senate CommiiteeLeaders
Give In TO Republican
Group and Tentative
Schedule Is Agreed On
President Assents
TO New Program
Passage Next Week Hope
if Democrats Fail to
Win Over Insurgents

r? - w.
fro'r TIE Trt6u1c's IVostir1+o.. p,~co..
WASHINGTON, Oct. 6.-Yielding tc
pressure from q strong group OF Re-
publican Senator's from agricultural
states and faced with the danger OF
having the pending tax bill torn to
pieces by combination Of Republicans
and Democrats, the Senate Finance
Committee leaders to-day consented to
important changes in the measure.
Some Of these changes have been
urged by Republican Senators for days
and some Of them have been put for
ward by Senator Simmons and other
Democrats, who are taking a prorni.
nent part in the controversy over the
bill. They have been discussed in a
number Of informal conferences on the
Republican side, in the hope Of reach
ing a solution.
Changes Tentatively Agreed On
The changes as tentatively agreed on
though not formally arranged, include
Repeal Of the transportation taxes
on freight, passenger and Pullman
charges, beginning January I, 1922,
instead OF retention Of so per cent
OF them through the year 1922; ex~
press taxes also to be repealed.
Restoration of the capital stock
tax, which the Finance Committee
sought to have repealed as Of July
|, 1922, and which yields about
S7o.Oo0.0o0 a year.
Increase Of surfaces on large in
IL
from 80 per cent, rs in the Senate
lower surtax brackets are to BIO re-
duced so that rates on incomes from
$4,000 to $4,000 will be l or per
cent below the rates proposed origi-.
na1ly in the Senate bill.
Repeal of the excess profits tax as
Of January !, 1922. TO be accepted.
a substitute for the * per cent
corporation income tax, the substi-
tute to provide for Is per cent tax
on corporation incomes above $4,000
and 10 per cent below that figure,
with repeal Of the $1,000 exemption
under consideration.
The tax on alcohol and whisky
withdrawn for medicinal purposes to
be nearly doubled, or made 81 gall
lon, instead Of SEQ as nov.
Istpchl vi LIiA eel CGi t4i9 " tur
"nuisance" taxes, the exact ones to
be repealed 10 be worked out later.
The inheritance tax to be increased,
making the maximum DO per cent, in
stead of %, as at present. Tie gov
eminent would collect 40 per cent Of
estates over $10O,00O,0O0 under this
plan, which IS still Under discussion.
An increase Of toe postage rate TO
cents and a number of other PROPOSE.
tons have been considered, but there is
almost no prospect OF the postage rate
being increased. The sales tan will
not be adopted.
Working for Agreement
Much progress was made to-day to.
ward perfecting an agreement. There
Committee Republicans in d day OF
two, Senator penrose announced. al
which it is expected the program will
be formally agreed upon.
Last night, most of the agriculture
membcrs and Senator Lodge met al
Senator Capper's house and thrashec
over changes. They agreed on q part
of the program already mentioned. Sen.
ator Lodge took the matter up with the
President to-day and Senator Penrose
Senator Lodge, Senator Curtis and sew.
cral other leaders talked things over az
length this morning, and it was decidcc
to make the changes on which the agra
rian Republicans were insisting. The
President is Favorable to the changes
and eager to have the bill passed.
Part of the program contemplates the
expediting of Che bill. Efforts are to Be
made to pass it next week. Experts ar,
at work Oh the proposed changes with
view TO getting accurate tigares as
TO what they mean in actual revenue
The problem is to raise about $3,20Q,
100000 and while large amounts arc
TO be Topped off the bill as it stands
equally large sums must be added
since the bill as originally reported
from the Finance Committee provided
for but little more than the sum act
ually required by the government.
The agricultural bloc in the Senate
has been split over the measure. a
part OF the Republicans OF that bloc
are unwilling to stand for repeal Of tine
excess profits tax and are quite willing
TO cooperate with the Democrats to
prevent H. Most Of the Republicans
Of the bloc, however, have lined up with
The movement 30 thresl ouC differences
over the bill within the Republican
lines.
Senate Democratic leaders, who hoped
to shape the changes in The bill in CO.
operation with insurgent Republicans
were not little vexed to-day at the
turn OF affairs.