The daily banner. (Cambridge, Md.) 1897-2008, 1921-10-07
SENATORSPLANTO|
REVISE TAX BILL.
Leaders Consult the President
on Program. u
HOPE TO AVOID PARTY SPLIT
Progressive Senators Hold Conference
With Lodge, Who Afterwards las
Talk With Mr.. Harding.

Washington, Oct. IA tax revision
program designed to meet much Of the
criticism aimed at the pending measure
is understood to have been agreed upon
by Republican leaders ,fter Il series
Of conferences, including one between
President Harding and Senator Lodge,
Massachusetts, Republican floor lead
er. The program is said TO contem-
l,Iate:
4 maximum income SurtaX rate of
approximately 80 per cent in lieu of
the committee proposal of 81 per cent.
Repeal Of the taxes on freight, pass
engcr and Pullman transportation and
all of the SO-callcd I.liSance excise.
Retention of the corporation capital
stock tax. estimated to yield SI3,0Oo.-
go.
Repeal uf the $1,000 exemption al
lowed corporations which would i'll
crease revenues &60ooO,0O0.
This program is somewhat similar
- that tentatively outlined ut Il meet
ing of Progressive Republicans, which
was attended by Senator Lodge. The
leaders are said To have agreed to
retain the committee proposals for a
fat corporation income tax of 10 per
cent and for repeal of the excess prot
its tax as of next January ].
An increase of one cent in first class
Postage was discussed in the confer
| enceS at the capitol, the $1S,0O0,000
annual yield from this source 10 re-
place the loss resulting from the wip-
ing out of the nuisance" taxes.
There also has been some discussion
of Il reduction of the income Surtax
rates in the brackets below 81 per cent.
The principal points of the COM
promise under negotiations with f.
nance committee members were said
~ represent the consensus of Opin-
ion of a group of fourteen Republican
senator's who conferred at the home of
Senator Capper. Republican, Kansas,
/ with Senator Lodge. Most of those at
the conference were senators from
western agricultural states and in
Guided many members of the so-called
Progressive group.
The SmOOt manufacturers tax was
discussed, but there was not unanimity
as 20 its advisability, some of the COM
ferees said, although majority We're
represented as opposed TO the plan. -.
The compromise suggestions were 70
be PRESENTED informally to Senator
penrose chairman, and other Repub-
licans of the finance committee with
the hope, it was said, I'll or q large
part would be acceptable to the COM
mittee to be offered from the floor as
committee amendments" In this way
The Republicans hoped to agree which
would be acceptable to the majority
IF he senate and avoid any party split
or deals with Democratic opponents
Finance committee members said
any agreement would have to be reach
ed by give and take" They indicated
willingness to accept the demand for
repeal of the transportation taxes but
expected to trade on other items.
The Massachusetts senator is under
stood to have given to the president
detailed account of Republican diff
ferences over the proposal for man.
| ufacture tax and the president was
said to have indicated a strong desire
the difficulties be smoothed out as
soon as possible to permit an early
completion of the tax revision. There
was no indication Mr.. Harding had
taken a positive stand for or against
the sales tax.
The presidents active interest re-
yived reports that he might make some
communication to congress on the sub
| ject. In high administration circles
it was said he still hoped the tangle
would be unravelled without such ac-
| ton and for the present he would
| await the outcome of negotiations
| among the Republican senators looking
to program that would command
| united support.
Returning to the capitol, Senator
Lodge conferred with Senator Curtis,
Kansas, the Republican whip, and
Senator Watson, Indiana, one of the
| finance committee Republicans in
charge of the tax bill The tax pro-
gram as outliend in the conference
| was discussed and Senator Watson
| planned to take the matter up with
! other members of the committee.