New-York tribune., 1921-03-29
Penrose Sees
Prompt Relief
On w ar Taxes
Excess Profits To BE AboI-
ished and Income Levy
Cut 10 Collection Point
by New Bill, He Predicts
Two Months for Hearings
Inquiry Is Expected 70 Fix
Policy So Business Will
Know What TO Look For
From. 7hc Tri5pme's rya.nin o.on Bur<o.

From The Trijune's H-dshin oton Bureau
WASHINGTON, March 28.--Senatol
Penrose, chairman of the Senate Com
m'ttec on Finance, said to-day the
committee hoped to be able, after hear
ings on tax revision, to give assurances
to the country that the excess profits
tax would be abolished and "income
taxes would be reduced to the collec-
ton point all along the line"
He said it had become evident there
was a. collection point as to tho in
come tax, and that rates above that
not only robbed the taxpayer of initia-
tive, but actually deprived the govern
n,ent of revenue.
Senator Perrose, who is in close
touch with Chairman Fordney of the
aHouse Ways and Means Committee,
and who conferred st the close of last
week with him and Senator Watson,
Of the Finance Committee, reiterated
his belief that the emergency bill for
tariff On agricultural products would
| be passed in the form in which il
passed last season, except that the
anti-dumping measure and the Amer
lean valuation measure probably would
be included with it in single bill.
Tax Hearings to Begin Soon
He announced that the Finance COM
mittee would begin hearings on tax
revision without waiting for the extra
session Of Congress to begin and inst
as soon as majority of the committee
members. some of whom are out of
Washington, can be assembled. He
estimates that two months will be re-
CURED for hearings by the Finance
Committee on tax revision. hut said
Mr.. Fordney hoped the Ways and
Means Committee would avail itself
OF the Finance Committee hearings and,
not duplicate them, and that every ef-
1orc would be made to prevent the
hearings from being unduly prolonged.
Ihe FINANCE Committee does not in
rend to initiate a tax bill, Senator
fenrose pointed out, because it is the
plr,e,rogative of the House to initiate
pllls relating to raising revenue. This,
however, VIII not prevent cooperation
between the Finance and the Ways and
Means committees.
we VIII also confer with the Secre-
tafy OF the Treasury and Treasury eY-
perts,, said the Senator, ''in the hone
OF submitting some schedules of re-.
'vIsed taxation. Thus reinsurance w;ll
be gwen to taxpayers almost simultane-
ously With the presentation of tariff
Dali. The taxpayers will receive an as-
surance as to what will be done which
t; Mlia De almost equal to relief legisla-
beneficial Immediately. We hone this
assurance will be backed by the Presi-
dent. II this is done it will instill
confidence and renew inspiration in the
business world. We hope to civ" aas
snrance that profit taxes will Be abol-
lshed and income taxes will be reduced
line" '"s VIC
Aims to Restore Incentive
THE tax must not be in excess of
an amount which will rob the TAXPAYER.
who is the investor Of all incentive. and
initiative, and in this way stop the
wheels of enterprise and industry"
sald the Senator. "The temptation to
hlde wealth in untaxed securities must
De removed, and the possessor of
money for development and investment
must have restored to him the in
centlve to enterprise"
Senator Penrose said the Tordnev
emergency bill would be limited to six
n.1nths. or until permanent revision
Pill was enacted, and therefore mem
oers Of Congress who were demanding
amshqments a1s's1d ne,a to the emergency bill
sent these for adoption as part of the
permanent revision bill, thus avoiding
delay of the emergency measure. AS to
compensatory duties, he said Eastern
manufacturers felt they could survive
the temporary tariff measure if it were
accompanied by the American yalua-
tion plan, which would be "amply pro-
tectlve for most industries" notwith-
standing the tariff on their material.