The New York herald., 1921-09-20
TAX REVISION BILL
READY FOR SENATE
Amended House Measure Will
Be Presented on Floor
Tomorrow.

WAsHrsGToN, Sept l9.-The tax re-
vision bill will be sent 20 the Preslden,
by the latter part Of October, Chairman
Penrose predicted to-day in announcing
that the Senate Finance Committee had
formally approved the House measure
as amended.
Neither the Smoot manufacturers
sales tax nor the Calder proposal TO I'M
pose a tax of ss.4o gallon on all alco-
holic liquors Withdrawn from bond for
other than manufacturing purposes viii
be included in the measure. a. II vii be
presented to the Senate Wednesday.
The authors have given notice, however.
that they expect to present these amend
ments on the Senate floor.
Senator Penrose said that so far as
the business of the Senate would permit
II was the purpose to take the bill up
Immediately and press for final action.
He added that some features, particu-
larly the profits tax repeal and the pro-
posed reduction of the ma ximum income
surtax rate to 80 per cent. would be op-
posed from certain quarters" but that
there seemed to be general desire to
expedite passage.
IN these circumstances" he contia-
ued, there is reasonable expectation
that the bill can be passed in the Senate
with two weeks consideration and ought
not 10 require more than week in con.
ference. II that long a time. II is en-
tirely safe, therefore. for me to predict
that the bin Will be sent TO the President
during the latter part OF October.
1t is extremely desirable TO have the
bill passed as soon as may be in order
that Treasury officials can have ample
opportunity to frame and pronulgate
rules and regulations under the new
measure.
Il think the amendments to be pre-
sented TO the Senate improve the bill,
which Will produce the revenue required
and contains many features ameliorat-
ing conditions now burdensome 10 the
taxpayer"
While Treasury experts are yet to
complete their final estimate as TO the
total revenue that probably would be
raised this fiscal year under the meas
ure as amended. II was stated that the
amount would not be less than So. 200, :
00o.000. the minimum which Secretary
Mellon informed the committee would be
necessary. For the next fiscal year
ii is estimated. roughly. that the re-
turn would be around $270o. 10000.
The Smoot sales tax plan was dis
ciIssed further in the committee to-day
with Treasury experts participating. but
Chairman PcnroSe said Senator Smoot
had stated afterward he was willing not
to press the amendment In the commit
tee. but would reserve the right to sub
NIT it to the Senate. The committee did
not take vote on the proposal, the
chairman added
The Calder whiskey tax amendment
already has been accepted in principle
t,,- 1,s sAe nd 10
said the New York Senator would pre-
sent 1t in the Senate practically as a
committee amendment. Senator Calder
also has reserved the right to offer an
other amendment to tax 2.T5 per cent.
beer at the rate Of So barrel.
Before finally approving the bill the
committee voted two additional changes.
Under one, amusement admission
charges not exceeding ten cents would
be exempt from the one cent tax i'm
posed by the present law. Under the
ether, hotels would pay tax of 10 per
cent. on the entire amount charged to
transients for rooms IL the sum exceeds
SIS for one person and IS for two per
sons AS originally presented by Sen
ator Reed Democrat (Mo). the taa
would have been paid only on The
amount by which the charge exceeded
these sums.
In the absence OF Senator Simmons OF
North Carolina the plans of Democratic
committeeman with regard to the bill
were not announced. but 1t is expected
they will submit a minority report at
tacking several features of the bill, par.
ticularly those dealing with excess
profits and income surfaces. Senator
La Toilette of Wisconsin and some other
Republicans also are expected to oppose
some sections OF the measure.