Omaha daily bee., 1921-09-30
Crisis Near
In Senate
Tax Fight
Opposition to Numerous Fea
lures of Bill to Critical
S,age-Many Changes
Likely.
Smoot Plan Gains Favor
By ARTHUR SEARS HENNING.
Chicago Tribune Omaha n~c Leased Wire.

Chicago Tribune Omaha D~c Leased Wire.
Washington, Sept 2o,-Opposition
TO numerous features OF the pending
tax bill in which republican dissaiis-
faction Is an important factor.
brought the measure 10 critical
stage in the senate today. lndica-
tions are that radical amendments
will be forced by the republican dis
sentcrs and their democratic allies.
Republican leaders, favorable 10
the measure as il now stands, ad-
mitted that some changes must be
made. Conferences were in progress
with view TO heading off the at
:acks to be made by senators OF the
agricultural bloc" against the repeal
of the excess profits tax and the re-
duction Of the higher surtaxcs. The
leaders were reported TO have OF
fercd to agree to the complete reprel
OF transportation taxes il the agricu,'
tural group would make concession,
The agricultural senators, who are
planning to hold meeting tomo'-
row, do not appear disposed 10 ron:-
promise, believing that they are GER
tain of obtaining repeal OF the trans
portation taxes and are likely to put
through other important amend
mcnts.
Oppose Retroactive Plan.
Administration spokesmen desire
to make the repeal OF the excess
profits tax retroactive instead OF ei-
fcctive on income of the calendar
year 1922, but members OF tie agri-
cultural group do not take kindly TO
the suggestion.
Because of the general dissatisfac-
ton with various features OF the bill,
the movement for the Smoot per
cent manufacturers sales tax, which
is designed to substitute for both the
excess profits tax and miscellaneous
taxes. seems to be gaining some
strength, Senator Smoot announced
that he would offer series OF
amendments embodying his program
tomorrow and at that time make
statement in support OF what nc
proposes.
Senator Simmons of North Caro-
lima, ranking democrat on the If
nance committee, offered series OF
amendments in the seihte striking at
important features of ihe measure.
Senator Simmons will make 2 speech
in the senate tomorrow in support OF
the democratic program winch in
cludes his amendments and also
amendments reducing normal taxes
and providing for graduated corpor..
alton income taxes already offered
by Senators Walsh of Massachusetts,
and Gerry Of Rhode Island.
Simmons Amendments.
Amendments offered by Senator
Simmons included the following:
Adoption Of scale of surtax rates
on individual incomes with maxi
mum of 81 per cent instead OF 65 per
cent in the present law and 50 per
cent in the pending bill
Retention OF the capital stock tax
which is repealed in the committee
bill.
Repeal of the tax on freight, pas
senger and Pullman transportation,
effective January |, 1922.
Repeal of the $1,000 exemption on
corporation incomes.
Elimination of the exemptions for
individuals and dependents from
persons with incomes in excess OF
$4,000.
The senate failed to make much
headway in considering the tax bill
today, owing to the fight made by
Senator La Toilette of Wisconsin
against the provisions defining for
eign traders and foreign trade cor
porations.