Evening star., 1926-02-02

Repeal of the capital stock tax and
In lieu therof an increase from 1212
to 1912 per cent in the corporation
tax, as recommended by the finance
committee, was being debated in the
Senate today, with indications that
this question might be voted on dur
ing the afternoon.
Chairman Smoot, in charge of the
bill, explained that the increase of l
per cent in the corporation tax was
proposed to offset the repeal of the
capital stock tax. He explained how
this change would simplify the hand
ling of tax matters. including the
elimination of investigation which the
Treasury must now make 70 deter
mine the value of stock.
Hits Retroactivity.
Senator Harrison, Democrat. OF Mis-
sissippi. asked for the yea and nay
vote or the amendment increasing the
corporation tax, but Senator Sim
mons, ranking Democrat on the
finance committee. took the floor, de
claring he wanted to object to the
recommendation of the committee
tina: this increase in the corporation
tax be made retroactive to 1925.
Senator simmons said that the CAPT
tal stock tax is payable in advance
and has already been paid up to June
30, 1926. He insiste ed that II the in
crease in the corporation tax is de-
signed merely to take the place of the
capital stock tax there is no necessity
FOR going back and applying the in
creased corporation tax rate TO 1925.
Smoot Effort Blocked.
An effort by Chairman Smoot of the
finance committe to speed up the tax
Dill on its journey through the Sen
ate by having that body meet an hour
earlier today was blocked yesterday
afternoon by Senator Norris of Ne
braSka.
Again asserting that he had no in
tention of delaying the tax bill. Sena-
tor Norris nevertheless added that he
wanted 10 assure Senators that If
Ghey undertake at this early date TO
start a seam roller process they are
not going to make any headway." The
Nebraskan was successful in his OBJ
lection When the Senate concluded
it recessed until noon instead of II
clock today.
Supporting Chairman Smoot in his
effort to get the measure through in
time to benefit the people on March
tax payments. Senator Simmons, rank
ing Democrat on the finance commit
tee, declared that if the Senate does
not meet earlier than noon he sees lit
tie chance Of passing the bill In time.
Had Important Work.
Senator Norris and Senator Couzens
both argued they had important COM
rnittee work to attend to in the morn
ing, which could not be carried on II
the Senate meets at II o'clock. Sen
ator Simmons replied the Senate
could not fiv IN hour for meeting that
would not conflict with the work Of
some committee
Practically all Of yesterday was de-
voted to speeches. Senator King,
Democrat. of Utah, who fled an In
dividual minority report as a men,
Der of the finance committee, opposed
repeal of the Inheritance tax and Of
he income tax publicity provision.
He also offered an amendment TO in
crease the maximum surtax rate to
% per cent, to apply on incomes over
100000
Senator Couzens urged repeal of
the provision allowing consolidated
returns by affiliated companies. He
also presented figures to bear out his
contention that high surtaxes have
not resulted in wealthy persons maxi
ing large investments in tax-exempt
securities