The New York herald., 1921-11-20
SMOOT TOLEAD new
fight ON TAX BILL;
PASSAGE DOUBTFUL
Refuses to Sign Conference
Report, Saying Revenue
Will Be Shy.
MAY VOTE TOMORROW
FOrdney Hopes to Bring
Up Measure Despite
Dissatisfaction.
WADSWORTH PLAN LOSES
PenrOse Predicts Next Con-
gress Will Pass Soldiers
WADSWORTH PLAN LOSES
PenrOse Predicts Next Con-
gress Will Pass Soldiers
Bonus Bill.
Special Despatch 10 THE NEW YORK HERALD.
New York Herald Bureau.
Washfn1f0u. n G.. Nov 10 {

Special Despatch 10 THE New YORK HERALD.
New York Herald Bureau.
Washington. ID. G., Nov. 10.
Although the Senate and House con-
ferees reached a complete agreement
on the tax bill to-day. all signs point
to stormy voyage for the measure
before it reaches the statute books.
Murmurs of dissatisfaction over the
work Of the conferees were heard on
all sides, and the prediction was freely
made that the present session of Con-
Gress would end with the tax revision
still uncompleted.
Senator Smoot Of Utah. Republican,
one of the conferees, fatty refused to
sign the conference agreement de-
claring he was not convinced that the
bill as slashed and cut by the confer
ence committee would yield sufficient
revenues to meet the needs of the
Treasury during the next year. He
expects to express his views thor
oughly ON the floor Of the Senate next
week.
Representative Fordney OF Michigan.
chairman Of the Ways and Means Com
mittee. hopes to bring the conference
report to a vote in the House Monday
so that the Senate will be able to act
Tuesday and leave the way clear for
adjournment sine die on Wednesday.
Many Senators and Representatives ex-
pressed doubt that this programme
would be carried out.
Corpora ticn income Tax Set.
With the Senate and House already
in agreement as to the excess profits
repeal and the surtax rates. the out
standing accomplishment of the con-
ferees to-day was 10 fix the corpora
ton income tax rate at 121a per cent
beginning with the income of the calen-
dar year 1922. Tie House had voted
for the 1915 per cent. rate, while the
Senate fixed the rate at 10 per cent.
The 12h per cent. rate will be SUBJ
stitute for the 10 per cent. normal tax
and excess profits taxes provided un-
der the present law. it will mean a
considerable reduction in taxation for
corporations with large earnings, but
an increase for those which have not
had earnings sufficiently large to be
subject to the excess profits tax.
BY agreeing to the 12H per cent. rate
the conferees reduced the total of prob
able revenues below the Treasury De-
partment's estimates of its require
ments The reduction from 15 to 1915
per cent. in the corporation tax will
not affect revenues in the next year.
but after that it will mean reduction
of sf3O, 600, 900 under the yield estimated
from the Senate rates.
AS passed by the Senate the bill was
calculated to yield s3.242, 100000 in the
fiscal year 1922. which Is $50, co., 900 less
than the estimated needs Of the Treas
ury. Under the conference agreement
the bill may result in a deficit of at
least $50, 900 900 in 1922 and probably will
raise less than $3.50. 100000 during the
fiscal year 1923.
Biu Adequate, Says Penrose.
Senator Penrose CPa.). chairman Of
the Senate Finance Committee, insisted
that the bill would be adequate for
immediate purposes.
"Of course he said. "if the Govern
ment is TO grant soldiers bonus and
assume other burdens IL will be neces-
sary to adopt very extensive new tax
levies. This bill does not provide suf-
ficient funds for q soldiers bonus.
believe that Congress in the next ses-
sion will pass q soldiers bonus bill. !
am una BILE to say whether funds will
be provided for the soldiers bonus
through a sales tax
The conferees knocked out the Wads-
worth amendment imposing additional
taxes on medicinal wine, beer and
whiskies designed to raise 10000. 900
The House provision imposing O. tax Of
$40 a proof gallon on distilled spirits
with an additional tax of $40 on
spirits diverted for beverage purposes
was acceDfed.