Show SENATOR SMOOT CALLS REVENUE BILL ABSURDITY Proposed Tax Measure l Penalizes Penalizes Penalizes Pen Pen- U. U S. S Industry Declares Iy by i. Washington Sept 1 members of ot the Senate finance lu committee openly openly open open- open open-I ly h hostile tel to the new revenue rc bill drafted by 11 the House ways Was all and means i committee It became apparent toda today I that some soma ver very radical changes In the measure will have to Ui be made before it il Is acceptable to both houses of ot Congress Con Con- gress In Its present form It does docs not meet e Continued on Paso Pano 2 SEN ISEN SMOOT GALLS CALLS NEW IE REVENUE BILL ABSURD I I Continued From Page 1 the he wishes wisheR of ot Secretary McAdoo MC and IB is not Ilk liked b by senators on the finance c committee The I Is likely to pass paRS It It however howe without amendments Th The Senate committee under le leadership lead lead- d- d of or Senator Simmons of ot North Carolina will in all probability re repeat topeat to- to peat tho the precedent c established last year car of or entirely rewriting the thc bill Final passage p probably will bo be de- de until some soma time lime after tho the No- No ember election Senators who found Cound time to study the he bill o overnight ht strongly disapproved of ot many of Its essential features The They arc are In accord with Secretary McAdoo In opposing tho the Increase In the excess profits rates and believe tho the heavier burden should be bc Imposed upon strIctly strictly strictly strict strIct- ly war profits Thc They also regard the corporation income tax of or IS 18 and 1 12 Per cent as entirely too high Absurdity So Smoot Senator R Reed ed Smoot of ot Utah leading Republican member of ot tho the committee was exceedingly severe severo In his hie criticIsm criticism cism cleat of or the bill Ho Ile characterized Ilas It Il as a a. bungling absurdity and s slid said ld that It would not nol come from the lime fi finance finance tl- tl nance committee until a great many m chang changes s had been made mado in It It It Is a fitting companion piece to the bill of or last year car Senator tor Smoot said except that It contains a few fow more absurdities It appears to lo have been designed to reach as fe few voters frs as possible It puts a prohibitive tax on the productivity of or business and penalizes American Industry Tho The In Income Income income In- In come tax fixed In the bill and the tho excess ex excess excess ex- ex cess profits rates constitute another absurdity The excess profits rates should be lowered to the figures of or last year eu and we should follow tollow Secretary Secretary Secre Secre- tar tary McAdoo's recommendation for a a. high war profits tax to catch the real war profiteers The Time 18 and 1 12 per cent tax lax on corporation Incomes will ruin er C every form of legitimate business Senator Smoot suggested s that there should be consumption taxes provided pro for Cor In the thc bill a form torm of or taxation which the House committee studiously avoided He Ile also favors a tax of 1 per percent percent cent on all retail sales above c 1 U and said such lIuCh a Ii tax would produce at t least in revenue re lIe He declared that he hc could take the bill Introduced by him last year car make a few tow chan changes es esIn In the them war profits rates and produce as much revenue as the House com om- committee estimates will s ill be bo produce produced b by Its bill bUt He asserted that th under the corporation Income tax plan adopted by b- the House mining Industry DrI and similar forms o of business would be forced to close down because of ot the tho penalty p placed ed c-ed up upon n failure to distribute distribute ute Income Is It likely that the bill will be passed passed- before the election Senator Smoot was asked lIe He replied We e could pass It In a month but hul Democrats dont don't want It until after atter election A 1 large number of ot protests against specific provisions of or the bill have been received ell by Senator Simmons aCcompanied ac accompanied accompanied aC- aC companied with requests for tor an op opportunity opportunity op- op to address the committee committee- Most of or these prot protests Senator Simmons Simmons Simmons Sim Sim- mons explained are against alleged In Inequalities inequalities In- In equalities In the bill rath rather r than against an any of or the time rates rales I think the people who ho will bo be af affected affected ar- ar by the new taxes gen generally re realize ro- ro alize alizo that we need heed the money Senator Senator Senator Sen Sen- ator Simmons said andare and are not going gom to make malte an any vigorous protest a against rates and the they ask aele to have ha these corrected cor cor- The Senate committee will begin Its hearings morning and 1 tho the consideration of ot the bill In the house Housel will be he opened the flam same 11 day a |