The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-08-20
MANY AMENDMENTS
TO TAX BILL ARE
FRAMED in HOUSE
Five Hours Session Is Marked
by Occasional Clashes of
Opposing Parties.
ELIMINATION OF TAX ON
PROPRIETARY, MEDICINES
Representative Kitchin Fights
Against Repeal of the
Profits Tax.
(Ry The Associated Press)

WASHINGTON, Aug. 19-More than
half hundred amendments to the re-
publican tax bill. most of them of minor
Importance. we're accepted today by the
house IN a five hours session marked by
occasional clashes between the majority
and minority and a renewal of the per-
sonal controversy between Chairman
Fordnsy. OF thA ways and means commit
tee. and Representative Byrnes. democrat,
of South Carosna.
A number of the other changes in the
bill including elimination OF the provis-
ions for five ger cent tax on the man
ufactures OF proprietary medicines. tooth
powder and pastes. and mouth washes,
and a reduction Ia the tax on cereal bev-
erages from SIX 20 four cents gallon,
are expected to be proposed tomorrow by
the ways and means committee before the
measure is passed late in the day.
Republicans and democrats In the house
were unit today in approving one
amendment, that striking out the section
of the bill imposing an annual license tax
of SO on vendors of soft drinks. On a
few other changes there were sharp d.
visions but many of the minor ones
merely changing language or punctuation
were put through without a single mem-
her on either side voting on the yea and
proposed We're adopted.
Under one amendment approved dem
ocratio opposition, corporations making
gifts for charitable purposes, would be
relieved from tax on such sums unless
they exceeded five per cent of the net
income of the donating company.
The big fight of the day was over an
amendment defining as foreign trade cor
pors tfons such domestic corporations as
derive fifty per cent or more of their gross
income from the active conduct of busi-
ness outside the United States, and, sim
ilarly. as foreign traders those Americans
who desire 80 per cent or more of their
income from sources outside of this coun-
try.
The democrats claimed this proposal
was a discrimination against purely do
mestic corporations in the matter OF taxes.
The republicans defended it on the ground
that ii was necessary to relieve foreign
trade corporations and foreign raiders
from taxation on income received from
sources outside the country that Sney
might compete with foreign concerns.
The amendment was adopted 103 to S5.
eleven republicans joining in the mega
tive vote.
One of the principal amendments ap~
proved by the ways and means committee
but yet to be presented to the house, pro-
poses creation OF a tax investigation COM
The views of the minority on the tax
bill. written by Representative Kitchin,
OF North Carolina, ranking democrat on
the ways and means committee, who is
I'll at his home in North Carolina were
filed with the house late today by Repre-
sentative Oldfield, democrat, of Arkansas.
While announcing democratic opposition
TO many provisions of the BILL" Mr..
Kitchin confined his report to what he
termed "ths two principal provisions of
the republican tax pTogrann-repeal of the /
excess profits tax and the substitution of
q 21s per cent increase in the corporation
income tax an ILLUMINATION of the surtax
Income rates In excess of 80 per cent "
The North Carolina member declared |
repeal of the profits tax would be an /
absolute surrender to an obedience Of |
the will and command OF the big corporate |
interests and one OF the most vicious
pieces OF legislation that ever was pro- |
posed or advocated openly by any public /
man since the beginning of the govern
ment.'
It demonstrates" he added. "the fact /
hat the member voting for it will and /
must look hereafter to these corporate in
.srssts for support rather than to the
plain people
Mr.. Kitchen renewed the claim made
n his recent telegram to the democratic
,aucus that the profits tax repeal would
benefit the rich corporations at the ex-
oense Of the poor and to support his ar
sument gave figures which he declared
we're obtained from the annual reports of
he commissioner Of internal revenue.
Declaring the reports showed that the
corporations In this country made Sat-
100 .o00. 900 profit from January 1, 1915. to
/. 1921. Mr.. Kitchin said that
after deducting income. excess profits and
,ther war taxes. they had a clear profit
Il s3s, 900. 900. 600, more than four -fifths
If which was made by less than 10. 600
and more than half Of which
vas made by 1se26 Of the big profiteering
which includes the steel
rust, the Bethlehem Steel company, the
Dupont companies. the various Standard
)il companies. the coal combine. the
voolen trust, the meat packers etc
What an iInpregnable position it
would be-" said Mr. Kitchin. "and what
IN appeal it would make TO the sense Of
light and justice OF the people for the
democrats TO take the position that not
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