Evening star., 1921-10-23
SENATE GETS PAST
ONE TAX OBSTACLE
Republican Compromise In
come Surtax Rates
i Adopted, 54 to Is.

One OF the DIG TAX feViSiou ISSUES
in the Senate was settled yesterday
with the adoption. "a to Is. Of the re-
publican compromise income surtax
rates with the maximum at so per
cent. All those voting against the
compromise were republicans.
They were Senators Calder. Came
ron. Dillingham;, Edge. Farnald,
Frelinshuysen. Hale. Harreld. keyes'
Mclean. Moses. smoot and Spencer.
The Senate previously had voted
down an amendment by Senator
Hitchcock, democrat. Nebraska, pro-
posing retention Of existing rates on
incomes in excess Of 100000. and
another by Senator Calder. republican.
Ne~ York, to make the maximum rate
80 per cent on that part OF incomes
In excess of s6S,G00.
The vote on the Hitchcock proposal
was - to 23. with FIVE republican,
supporting it and four democrats
voting against it. The republicans
were Borah, Johnson. Kenyon. La
Toilette and Norbeck. and the demo
rats were Underwood, Ransdell,
Broussard and Myers.
Fifteen votes were cast TOT tne
Calder amendment and 81 against H.
Those voting for the proposal were
republicans. They were: Bursum.
New Mexico: Calder. Cameron. Dill
Iingham, Edge. Ernst. Fernald, Ere
Iinghuysen, Hale. Keyes, Mclean.
Moses. New, Page and Smoot.
To Ask Another Vote.
Senator La Toilette, republican,
Wisconsin, gave notice that he would
ask for another vote on the Hitch
cock amendment before the bill hnal-
ly is passed. but 1T was the opinion
IF leaders of both sides that the sur
tax issue had been definitely settled
SO far as the Senate was concerned.
The compromise plan, however. will
have to run the gantlet of House
were predictions that the maximum
rare finally agreed upon in the con-
ference would be around 40 per cent.
After voting in the surtax rates. the
Senate took up an amendment by Sem
ator Gerry. democrat, Rhode Island.
The first $1,000 Of income. 4 per cent on
the second $1,000. : per cent on the
third $1,000, and the existing rate Of s
per cent on all over $4,000. After some
discussion the amendment went over
at the request of Senator Lodge, repub-
Hcan, Massachusetts,. who said he de-
sis cd to obtain official figures as to how
much revenue would result from such a
plan.
Senator Gerry has proposed that the
loss Of revenue. which he estimated at
s135. .000, 900. could be made up through
increased corporation taxes, a levy on
gasoline and retention of some of the
So-callsd luxury taxes proposed for re-
peal
Debate yesterday was enlivened by
sharp clashes between Chairman PEN
rose OF the finance COMMITTEES. on the
one hand, and Senators Reed. democrat.
Missouri. and Gerry, on the other.
Complaining about an address by Sem
ator Reed in opposition to reduction Of
income surtaxes. Senator Penrose said
souri, will have evening sessions at
which to continue his performances"
Night Sessions Needed.
The senator from Pennsylvania is
threatening US with night sessions"
replied Senator Reed. I'VE care not
how many night sessions he holds.
We will sit here during his night
sessions while he holds a wake over
The dismembered tax bill which ought
to be dead"
Senator Reed added that the demo-
Gratis proposed to make the finance
committee, back up" on the PROPOSE
tion ito relieve the proflteers Of
S450.o00.000 of taxes a year" referring
10 the excess prontS taxes.
IF we don't do It here" he declared
we will back you off the boards In
the next congressional elections"
Later in the day Senator Penrose
accused Senator Gerry of absenting
himself from the committee room
when the tax bilk was being drawn,
saying that the Rhode Island sena-
tor was present only / per cent Of the
time. Senator Gerry denied this. de-
clarinr he WAS uresent mora fPe.
quently than the cha irman.
Senator Penrose ithen told the Sem
ate that after tomorrow night he
would ask for night sessions and if
necessary. would ask soon afterward
that the Senate meet an hour caller
each day.
While republican leaders were re-
newing their call to absent repub-
iican senators to return to Washing
ton Immediately for votes yet to come
on tax provisions, democratic leaders
also sent out a call to absent demo-
cratic senators, urging them to be in
attendance continuously on and after
tomorrow,