New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-02
House Tax Bill
Discarded by
Senate Board
finance Committee Finds
Measure Inadequate in
Every Respect aRd Will
Draft New Provisions
Legislative Tangle Certain
f,ne Revenue Law i'm Cine
Volume Will Take Its
Place. Pc nro se Says
rrsr re Trsosns's Washington Bureaa

rv5zs The 2ftoHHs'S washington BuredN
WASHINGTON, Sept 1.-THE tax
,.v;,sox and revenue bill passed by
~ House on August 20 was definitely
s;.e.rded to-day by the Senate Finance
rammitfee, which voted to frame an
entirely new revenue measure.
This decision is She result of the
committees determination that the
Republican party's pledges must be
redeemed by lifting the tax burden
through a measure which in itself shall
oontain the entire revenue laws and
not merely hundreds of amendments
"a old laws. This sweeping action at
the initia! session on the tax bill is
expected to cause q real Legislative
angle.
The Senate committee feels that the
hin passed by the Iouse is inadequate
in every sense Of the word. The mem
hers believe it neither provides eff
actively for revisions nor will it pro-
duce sufficient revenue. The attitude
81 the committee was expressed by
senator Penrose in these words:
I'VE sre not going to have several
hundred amendments attached as bar
racies to the other laws. Instead
there will be one revenue law in one
volume, so that me taxpayer will be
able to determine easily and quickly
Ill the facts relative to taxation"
To Wipe Slate Clean
Dorrosa ro,l In 4
expect to get to any discussion of
eYal days. With the tax slate wipees
entirely clean so far as the Senate is
concerned, the committee will imre-
diately take up broad matters of pol
icy.
One Of the groundwork items in the
Senate plan, however, is to be the re-
peal of excess profits. 1t is declared
the sentiment of the committee is in
clined TO change the date of repeal of
these taxes from January l, 1922, as
provided by the House, and make it
retroactive to January !, 1921.
It is also more than probable that
the committee will take up the new
tax bill Senator Smoot, of Utah, has
announced he will introduce.
To-1ay's decision was announced BY
Chairman Penrose in q formal state
ment, which said in part:
There is a stupendous question of
policy involved. One thing, however,
was decided by vote at the meeting,
That was that the committee was de-
termined to have an entirely new reve-
nue. bill. All after the enacting clause
Of the measure passed by the House,
which are entirely amendments to the
existing revenue law, will be stricken
out.
No Decisions Reached
AS yet the committee has not been
called upon to pass definitely on zry
question. There was considerable dis.
cussiof on the subject OF the proposed
taxation of personal service CORPORA
nons, which hinges on the repeal of
tae excess profits tax and the Supreme
Court decision of March % lass. But
there wax no decision reached
TINS section dealing with the repeal
9 the excess profits tax, which the
Aouse makes effective on January /
1929, was reached and was passed b,
with very little discussion. This dis
ecssion was in tie main about tt.
date Of the repeal of this tax, which
many want to b. retroactive to Janu.
cry l, 1921.
Senate Smoo did not bring up hi.
new revenue bill, which he is proposin,
"a substitute for the House measure
nor vas there any discussion of it.
The committee will meet again to
morren and on Saturday. There will
be no meeting on Labor Day. And ths
emily change in the program of contin.
uous legislative sessions is that the
date for the appearance of Secretary
Of the Treasury Mellon has beer
changed at his request to take place
On Thursday"