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Show ' Ira CUSU5EJ BILL Reduce Corporation Income In-come Impost by Four Per Cent. War Excess Profits Proviso Also Remains in the Measure. "WASHINGTON", Dec. 21. In an initial 1 t vote lute today in t ho senate on the war revenue bill '3 1520 tax provision, V thirty-seven Democrats voted to retain it end thirty-one Republicans supported a motion to strike it out. ji On the motion of Senator McCumber j of North Dakota, to strike out the clause fixing tho Individual income normal tax Bt S per cent in 1920, the senate adopted the committee amendment by a straight r.nUyan division. Immediately afterward, and without a r.U call, Lhe senate adopted the 1320 j.rovision reducing corporation income taxes from 12 to 8 per cent. A motion of Senator Penrose to strike out the clause was defeated viva voce, with ail the yeas coming from the Republican aide. Excess Profits Taxes. In similar fashion, a motion by Senator J'enrose to strike out the war excess profits prof-its provision for 1920 also was voted down. Without record vote the senate finally adopted tho committee amendment for excess profits taxes In 1920. A substitute substi-tute by Senator Jones of New Mexico, propping to continue war profits taxes in 190, was rejected. 44 to 15. After settling the 1920 tax controversy, the senate adjourned until Monday, when passage of tho bill is expected. If, as Senator I,a Toilette's minority report re-port contends, tho average corporation tax is 4 per cent, ff-enator Rorah said he could see "great reason" for immediate passage of the bill. Opposition Changes. Senator Borah asked wiiy opposition frind "suddenly changed front" on tiie bill. Senator Smoot of Utah said he could not answer, but that Republicans could be relied upon to change the whole system. Senator Townsend said ho was so opposed op-posed to the 1920 provisions that he would be ready to filibuster in order to defeat tlie bill. That the Democrats know 54.000,000. 000 will not be enough in 1920 was asserted by Senator TownsT.d. Chairman Simmons admitted the truth of the statement and said he also knew ?6, 000. 000, 000 was insufficient in-sufficient for 1919 and that all or most of the excess would be required to pay war bills, which ought to be cared for by bonds and not direct taxation. No Great Mystery. Senator Townsend said: "If the Republicans Re-publicans bad stood up and fought this bill, with Its 1920 provisions, as they ought to have done, there would be an extra session," he added. rnairmnn Sirmnons said Senator Borah had Indica ted there was "some great rnvstery" In the ce.-.ialion of Republican opposition, "I do not think there wns ;iny great mystery at al!," faid the chairman. "1 think the con ! rolling policy or principle from the beginning of the opposition ltc' out of a desire of lhe Republican party for an extra session." Senator J'etirose paid many Republicans Republi-cans had been so hitt'-r'.y op;"s.-d tu tho R'2'.i provisions that iht.-v tallied of defeating de-feating the bill. "But, like other talk," h added, "It, passed by, and everyone felt ih;it the government needed the money and tha I the bill should be passed as soon as possible." pos-sible." Denying an effort to compel an cxrra session on the part of Republicans. Minority Mi-nority leader Lodge said "there are other bills that will force an extra session." S-enator McCumber said nothing was said about the pian until tho votes had been counted last November. Charge of Waste. Senator Ke!losg of Minnesota, Republican, Republi-can, declaring the war had been carried on extravagantly, opposed as an "iniquity" "in-iquity" the extension of war excess profits taxes Into peace limes. Whn he compared com-pared Rritish and American war expenditures. expendi-tures. Senator Rorah i in erjctt--d : "Rut Great Jjritain didn't have any Hog Island !" "Knormous waste" has occurred in aircraft, air-craft, ordnance and other work, Senator Kellogg averred, adding: "But we're willing to forget it and wipe the nlato clean because of the splendid results." Ho characterized the bill's 1920, provisions provi-sions as "vicious." The senate adopted the finance committee's com-mittee's amendment to the revenue bill, permitting corporations to make consolidated consoli-dated returns, and then took up consideration consid-eration of the committee provisions fixing fix-ing the 1920 tax at $4.000iri0,0u0. Senator Sena-tor Simmons announced that a vote on any one section would determine the senate's sen-ate's attitude on the 192'J plans. Suggests Extra Sessioon. Senator I'enrose. ranking Republican member of the finance committee, expressed ex-pressed the opinion that congress would be calied into extra session after March 4, and that the present congress could enact a revenue bill for 1919 and leave the matter of fixing taxes for 1920 until next summer. Senator Smith of Georgia, Democrat, defended the 1920 provisions, explaining that if not enacted the high levy of $6,000,000,000 for 1919 might coiitiuue during dur-ing 1920. Senator King of Utah. Democrat, Demo-crat, said he would support the 1920 clauses, but that Republican opposition seemed to be based on "considerable sanity" in view of- present information on 1920 conditions. Charges that the 1920 tax provision was inserted for "political reasons" were made by Senitor Townsend, Republican, of Michigan, and a member of the finance committee, who declared it never would have been inserted had it not been for the result of the November elections. Instead, he said, congress would have followed the usual course in such matters. Deny Any Mystery. Senator Borah declared that first reports re-ports were circulated over the country indicating that the Republicans would fight tnis provision until the end of the session, but later Republican leaders announced an-nounced there would be no fight. Denial that there had been any mystery regarding the matter was made by Senator Sena-tor Smith, Democrat, of Georgia, also a member of the committee, who said it had been "talked and talked." "That's another example of secret diplomacy," di-plomacy," ejaculated Senator Borah. Senator Borah interjected that the bill was supposed to levy a tax of 80 per cent on war profits, but be was told by a senator that it was not more than 48 ptr cent. Senator Smith of Georgia said he began be-gan to agitate the plan for 1920 taxes as soon as the armistice was signed, adding: "I don't know anything about it in connection con-nection w'th the election. As far. as the election is concerned, it had absolutely nothing to do with it." Senator McCumber of North Dakota, Republican, asserted the plan had never been suggested until after November 6 last. Chairman Simmons defended the committee, com-mittee, Paying the secretary of the treasury treas-ury wrote him a letter, which he submitted submit-ted to the committee, advising a reduction. reduc-tion. The date of the letter he did not remember, but it was after the armistice had been signed. Regarding the 80 per cpnt tax. Senator Simmons and Senator Penrose, ranking Republican member of the committee, both declared this was the maximum to be levied. |
