, 1921-10-13
Changes in Tax Bill Proposed
BY the Democrats and the
. "Agrarian Bloc"
GENERAL WOOD is RETIRED
President Asks Local Cooperation in
Relieving Unemployment Conditions
-Premiers BRAND and Lloyd
George May Attend the Great
Conference in Washington.
BY EDWARD w. PIcKARO.

by GDWAhO W..
The peril that resides In overwhelm-
ing maiorities. always recognized by
politicians, is being demonstrated
again 10 the Republicans in congress
In the case of the tax bill. The senate
Republicans have been split up into
several groups that so far have been
unable to agree on the changes to be
made In the measure as passed by the
hcuse, and the Democratic minority,
consequently. is hopeful of carrying
out It's program. The main features
Of this are:
a higher surtax rate than 30 per
cent TO affect incomes In excess of
100000.
A graduated corporation income tax
in place of the proposed IL per cent
rate.
Retention of the corporation capital
stock tax.
Repeal Of the freight. passenger and
Pullman transportation taxes and OF
the $1,000 exemption allowed to cor
poratipns.
Decreased normal income tax rates
on incomes OF $4,000 or less.
Senators Mccormick. Capper. Len
root md others Of the so called
agrarian bloc. together with a number
of other Republicans. have been work
ing hard to devise a program hat Will
be acceptable to n majority OF the
senate. and the one they have drawn
up tentatively includes the following
changes:
4 graduated corporation income
tax instead of n fat tax ms n substi-
tWe for the excess profits tax.
Further reduction In the lower sur
tax rates on Individual incomes. but
an Increase from the 20 per cent maxi
mum In the bin to 30 per cent. which
represents n compromise between the
proposed maximum and the rate of
90 per cent present law.
Retention of the corporation cap
ital stock tax which Is repealed in the
senate committee bill.
An increase in the higher rates of
estate taxes.
Repeal of the taxes on freight, pas
senger. and express transportation.
Senator Smoot Of Utah and a few
others nre advocating n 3 per cent
production or manufacturers sales
tax, but the group above mentioned
Is opposed TO this, n so Is Repre-
sentative Mondell. Republican leader
of the house. who. after n conference
with President Harding, asserted there
vas no chance TINT the house wsuld
accept anything of the nature of a
general sales tax
Last week the President let II be
known that he wished congres to 20
uhead with its legislative program
without thought Of an early adjourn
II cnt. There had been sorne anxiety
In Washington lest the deliberations
Of The conference on limitation of
ornaments might be disturbed by the
dolngs of congress II II were in session
after November II. hut Mr.. Harding
Is not at all worried by this. The tax
bill Is holding M all business In the
sennte except the treaties and the
canal tolls bin. The treaties are ID
be voted on October II and the cana
measure comes to n vote on October
10. If President Harding's preference
Is considered. the tariff hill VIII he
taken up before adjournment, though
many members of congress seem viii
ing that It should 60 over to the next
session.
Maj. Gen. Leonard Wood was con
hrmed by the senate ms governor gen
ernl OF the Philippines and next dag
was placed on the retired list of the