Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1921-10-14
new TAX Plans
ARE AGREED UPON
Agricultural Groups Ideas Ac.
cepted by Penrose as Amend
( ments to Pending Bill.
IMsuREs QUICK PASSAGE
Senate confsrees Designate Lenroot to
Draft Sections Agreed Upon--sur-
tax Rates Modified and Gen.
eral Sales Levy Abandoned.

Observation-Disclosures leaders OF
the senate agreed upon program by
Which the pending tax revision bill
will be rewritten In large measure
and receive the support Of the agri-
cultural bloc and practically all tie
publican senators. Senator Lodge
went to the White House and laid the
plan before President Harding, who
gave 1t his approval s
Senator Lenroot (Wls), member
Of the agricultural group, was desis-
mated to draft the amendments ac-
cepted by the leaders. They will be
presented to the Finance Committee,
which is expected to report them to
the senate as committee amendments.
The conference, at which this pro-
gram wac agreed upon, was the re-
suit Of meeting Of Senator's Len
root, Mccormick (Ill), Capper (kan.)
and other members of the agricultural
bloc with Senator Lodge. The con-
ference was attended by Senators Len
root, Mccormick, Lodge. PenrOse,
chairman of the Finance Committee,
and Watson (Ind), member of the
Finance Committee and close asso.
ciate of the President
The program is understood to meet
the approval of the house leaders in
the main and the fear that the tax
bill might fall this session because OF
the fractional differences over rates has
virtually disappeared, The amend
ments agreed upon follow.
A maximum surtax rate Of so per
cent in place Of the rate Of 80 per
cent in the pending bill and the 65
per cent rate Of the existing law.
All surtax rates to be reduced on
incomes below $4,000 The pend
Ing bill proposes reduction on in
comes of less than $4,000. but
slightly increases the rate on in
comes between $4,000 and 100000
The existing corporation income
tax of 10 per cent on corporations
having a net income Of less than
$4,000, with an increase to 10 per
: cent on corporations with larger
incomes will be retained.
The corporation stock tax, which
the senate bill proposes to repeal,
will be retained.
Increase to be made In the maxi
mum rate of tax on estates from
IS per cent to 40 per cent, this
rate to apply on estates above $l0,-
100000.
Some of the miscellaneous "nui.
sance" taxes to be repealed.
The Calder amendment to in.
crease the tax on whisky and al
cohol to be adopted.
The excess profits tax will be re-
pealed, effective January /, 1922, as
provided in the pending bill.
There will be no change in the nor.
nal tax rates.
The agreement Is understood to kill
all prospects at this session Of gen
eral sales tax, such as that proposed
by Senator Smoot. There Is a grow
ing sentiment for this tax in the SEN
ate, but 1t cannot yet command a ma
jority Of the Republican votes, nor
does it meet with approval of the
House leaders, who say
that 1t is doubtless oil right in itself,
but they do not believe the country
wants any new forms Of taxation.
The changes In the pending senate
bill as agreed upon are those proposed
by the agricultural bloc They were
accepted by Senator Penrose, Senator
Lodge and other Republican organlza.
lion leaders with considerable reuc.
lance, especially In the modification
Of the surtaxes, They yielded be-
cause II they had not done so 1t
seemed likely that the agricultural
bloc would join the Democrats and
force the adoption of still higher
maximum surtax rate.