Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-11-05
SALES TAX MAY
Be USED FOR FUNDS
SOLDIER BONUS


Washington, Nov. THE sales tax
as Il source OF federal revenue at this
| time was definitely rejected today by
; the Senate, but there was further
evidence that it was the purpose of
bring it forth later as q means of
I raising funds to finance the proposed
five way plan for adjusted compcn-
sation for former service men,
The ma jority today against the
Smoot amenrment to the tax revision
bill proposing a business sales tax of
enc half of one per cent was even
larger than was that last night
against the Smoot one per cent.
manubf acturers' sales tax The vote
| was As to % as compared with 43 to
rs last night
| AS was the case with the manufac-
turcrs' tax the Democrats voted
sOlidly against the business tax.
! They were joined by % Republicans,
! three of whom-t'ernald of Maine,
Gooding of Idaho and Reyes of New
mpshire-voted for the manufac-
turers' tax. Six Republicans who
did not vote last Brandegee,
Conn: Calder, New York: billing
ham, Vermont; Hal&, Maine; Har-
| reid, Oklahoma. and Johnson, Cali
fornia-supportcd the amendment to-
day.
Three Republicans who supported
the manufacturers tax did not vote
today. They were Edge, New Jcr-
sey; Ernst, Kentucky, and Warren,
| Wyoming. Counting senators who
were paired, it was estimated that
the maximum vote which would have
been cast for the sales tax was "a or
some six less than it had been csti-
mated would support it. Some
senators thought that the debate re-
suited in the loss of some votes.
After disposing of the last sales tax
amendment. the Senate continued
consideration of the tax bill at q SEES
sion tonight but with the soldier
bonus and other important amend
ments yet to be disposed of, Republic
can leaders abandoned hope for pas
sage of the bill this week
Urging his sales tax amendment,
Senator Smoot told the Senate that
since u sales tax was to be adopted
in connection with the soldier bonus.
he thought it would DC q wise plan
to put it into effect now SO as to de-
termine what rate would be neces-
sary to yield the money needed.
Senator Reed, Democratic, Mis-
souri,, said he saw no reason for de-
Ia WING ~, of n
lation and in this connection paid his
respects to Chairman Fordney of the
House ways and means committee,
and other House leaders, who he
said, We're undertaking to dictate to
the Senate what it should or should
not do.
Announcing his support of the
sales tax, Senator Johnson, Republi-
can, California, assailed the pending
bill as one seeking to continue "a
tax scheme which requires an army
of experts to teach honest people how
to pay what is due the government
and which creates another army Of
experts to teach the dishonest how
to cheat tho government"
Senator Walsh, Democrat. Hassa-
chuscttS, opposed the Smnot plan as
enc which not only would fail to re-
lieve the people of the veXatious
nuisance taxes" now in force but
would multiply them many fold
Business men. he said, had misun-
derstood tho Smoot plan in that they
had thought it would replace all
other taxes.
An unsuccessful effort was made
tonight by Senator Townsend, Ie-
publican, Michigan, to have the
three per cent tax on automobile
trucks and on wagons repealed Tl.e
senate voted Sc to % against recon
slderation of the committee amend
ment, proposing to continue this
tax.
Amendments by individual SEN
ators then were taken up under Il
tacit agreement that the session to-
night would continue until late
hour
Without record vote the senate
adopted an amendment by Senator
Jones, Democrat of New MEXICO. re-
quiring corporations in making out
their income tax returns to slow the
dividends declared during the year
for which the return is made. It's
purp0se the author explained, was
to prevent the possibility of conceal
ing profits.