Evening star., 1921-10-28
REED WOULDFORCE
SENATORS TO VOTE
ON SOLDIER BONUS
Paves Way With Amendment
to Tax Bill Providing for
Levy to, Obtain Funds.
WANTS EXCESS PROFITS
TO YIELD SPECIAL FUND
Proposal Includes Also McCumber' S
Bonus Measure for Five-Way
Benefits to Service Men.

The way was paved today by Sena-
tor Reed, democrat. Missouri. to force
:, vote on the soldier bonus bill. which
the Senate recently laid on the table
at the request of President Harding.
senator Reed introduced an amend
1uent to the tax revision bill provid-
ing for taxes on excess profits of
corporations and for use of the reve-
nue. derived as special fund to pay
bonuses to former service men. The
amendment included the McCumber
bonus bill. reported by the Senate
finance COMMITTEES. providing for five
way benefits to former service men.
Rates Of Taxation.
The excess profits rates proposed
in the Reed amendment We're 20 per
cent on corporations incomes up to
20 per cent of their invested capital
and 40 per cent on profits above.
None of the bonus privileges would
h"comc operative under Senator
Reeds amendment until January /,
1928.
Arguing for his amendment for
graduated tax on corporations in eX-
cess of the - per cent levy recon-
lnended by the finance committee.
Senator Walsh. democrat, Massa-
chusettS. said the IL per cent tax
would result in the increasing by
so per cent of the taxes of very
substantial number of corporations
in the country.
The bill, the speaker said. would
relieve surtax payers and the excess
profit making corporations. but ac-
1ually would add to the burden of
many concerns.
The increase" he continued, in
CrcaSes the taxes. not on the monopo-
listic class of concerns. not the big
profit making corporations, but the
small, struggling business concerns.
States Reason for Increase.
The increase on the struggling
corporations" Senator Walsh de-
rIared. was determined upon solely
in order to repeal the excess profits
tax. The speaker said this was an
unfair and unjust proposal and had
been put forward in an effort to get
back into the Treasury some of the
$50. 00n. 600 of lost excess profits tax.
Senator Walsh said it could not be
stIcce fully denied that the working
on: Of the republican corporation tax
Iian would increase the taxes paid
by corporations earning leSSsksRsrsSe
pcr cent and decrease the taxes paid
Ivy corporations making more than
10 or l I rer cent. depending upon the
Particular class of the corporation.
..And this" he declared, at time
when business is PROSTATE: at time
when business is asking for relief: al
:, time when the republican party is
ella inning to he anxious to restore busi-
ness prosperity
Senator McCumbcr of North Da
kota ranking republican on the
finance committee. conceded that the
fiat II per cent rate worked an in
justice on corpora atoms making small
profits. but hc argued that the Walsh
amendment would aggravate this sit
nation.
POmcrene's Suggestion.
\ suggestion that Senator Walsh and
she, republicans Of the finance commit
toe get together and work out an
amendment acceptable to them was
7uadc 10y Senator Pomerene. democrat.
Ohio, but it met with no response from
III" republicans.
The attempt to increase the taxes
Of business that is no. making ex
r"ss profits is the vital weakness of this
bill" said Senator Walsh. asking the
,prrb,icans how they could pose as
.'fhe friends of business.
There's nothing 50 Inadequate, SO
unjust and so indefensible in this
whole bill" he said.
senator Walsh said of 100000
american corporations. 100000 made
less than per cent 100000 made ex-
cess profits. and 100. 900 no profits. The
ScuatGr explained that his amend
,rcnt would continue present rates on
tho first class and on $4,000 OF the
higher earning companies, while the
committee hill, he said, would in
crease taxes on 100000 corporations.
Make Unsnccessfui Fight,
An unsuccessful fight was made yes
Icrday in the Senate to write into
The tax revision bill provision to
lax the undiStributed profits of cor
1orations Three separate amend
mcnts proposing such tax were re-
jocted, one without a roll call. Two
were offered by Senator Jones of New
Mexico. and one by Senator Simmons
of North Carolina. both democrats.
Also without a record vote. the Sen
ate voted down an amendment by
Senator McEellar. democrat. Tennes-
see. which would have authorized the
sll.O0O.0OO,O 900 of foreign debts into
longtime bonds. the interest on
which would Je payable next Janu-
ary /.
One amendment proposed by major
5ty members of the finance committee
was defeated after a strenuous fight
in which Ser tors Willis, republican
and Pomerene, democrat. both of
Ohio. led the opposition. The amend
1nent would have limited the eXemp-
tion from taxation of building and
loan associa tionS to only such asso-
Cia tionS all of whose loans were made
10 members. The Ohio senator's said
this amendment would force half the
associations in their state to go out
Of business.