Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-07
TAX BILL
ACTION THIS WEEK
Smoot Will Ask Night SEES
SionS to Hasten Final
Vote on Measure.

A final vote on the tax reduction
bill this week was predicted la st night
by Chairman Smoot of the Senate
finance committee. despite the failure
of the Senate again yesterday to act
on the question of publicity of income
tax returns.
Night sessions will be asked begin
ming tomorrow. Chairman Smoot said.
and with continuous 11-hour sessions
daily, he believed the debate on pub
licity and the proposed repeal of the
inheritance tax would be exhausted
by Wednesday night. Final action
before the end Of the week. he said.
would assure tax reduction by March
Is. when first income tax instalments
are due.
Act on Amendments.
In the seven-hour session yesterday
the Senate acted on two amendments
to the House bill and reconsidered
| another. New fuel was added to the
| fire in the fight on the provision pro-
posing repeal Of the law allowing pub
lication of tax payments when Sen
ator Ernst, Republican. Kentucky,
submitted minority report from the
special committee which investigated
the Internal Revenue Bureau.
Senator Couzens. Republican,
Michigan, chairman of the special
committee. had urged opening of all
returns to public inspection on the
basis of the majority report of the
committee. Senator Ernst and SEN
ator Watson. Republican. Indiana. in
the minority report, challenge con-
illusions reached by the Michigan
Senator and the fight was postponed
until tomorrow
Copeland Amendment Beaten
The Senate voted down an amend
ment by Senator Copeland, Democrat,
of New York, proposing to exempt
athletic clubs from the 10 per cent
dues tax.
1t also reversed previous approval
of a finance committee amendment to
allow farmers mutual fire insurance
companies exemption from the cor
poration tax only If IS per cent Of it's
income is collected from members
for the sole purpose of meeting
losses. and expenses
This is the present law. but the
House voted to allow these companies
complete exemption along with farm
ers' mutual, hail, cyclone and cas-
ualty companies. The Senate finance
committee amended the bill to allow
full exemption to all but fire insur-
ance companies and to keep them I'M
der rules now provided.
House Provision Sustained
All the insistanc of Senator Smith,
Democrat, South Carolina, a roll call
vote was obtained and the House pro-
vision was sustained. so to IA.
Another two-hour fight developed
| over the proposal in the House bill to
levy a tax of s cents instead of IS
cents a pound on manufactured to-
bacco sold directly to consumers Sena
tor Simmons. Democrat, North Caro-
lima. fought this and the action of the
| finance committee in striking it from
| the bill was sustained, 48 to 8.
| Senator Mcclellan. Democrat. Ten.
nessee, sought to have the House pro-
vision retained on the ground that 1t
| protected small Dealers
The clash over proposed repeal of
the publicity clause will be renewed
tomorrow with Senator Norris, Repub.
lican. Nebraska. proposing that all re-
turns be opened to public inspection
| The other major controversial item in
the bill-proposed repeal of the inheri.
lance tax-will then be taken up.