Show I Senator Smoots Smoot's Tax Bl Bill II I 4 E EXEMPTION EXEMPTION oV 01 of all agricultural products as an amendment to his manufacturers manufacturers' sales tax substitute for the tax bill has been proposed by Senator Smoot of Utah As a result of this action Senators Johnson Republican of California California California Cali Cali- fornia Senator Gooding Republican of Idaho and Senator Kendrick Democrat of Wyoming are the latest to join the group which has promised promised promised prom prom- to vote for the Utah senators senator's sales sale tax It is stated that this group includes the so- so called ma manufacturers bloc of Eastern senators embracing nearly all of New England senators the two from New York and one from New Jersey i Several members of the agri agricultural bloc it is stated already have indorsed the Smoot plan and confidence confidence is js expressed by friends of the sales tax plan that the exemption of agricultural products will cause cause still others to support it There can be no doubt that the action of the senate finance committee in proposing the rais rais- raising raising raising ing instead of lowering the surtax will r result sult in new friends for the sales tax plan or any other plan which will have for its object the elimination elimination elimination elimina elimina- tion of many of the objectionable features of the present tax law Any increase in the surtax is certain to cause the people of large means to continue to invest their funds in tax exempt sec securities ritie's es of which there are now in existence approximately S 46 t 16 6 and which include federal feder-aI state and municipal issues As pointed out on previous occasions oc oc- oc occasions occasions these tax-exempt tax securities have formed a refuge f for r people of means in escaping from froma a portion of their tax burden and at th the same time their investments in this class of securities ha have ve been preceded by the withdrawal wal of funds from productive industry v While Senator Smoots Smoot's plan naturally has its enemies it is certain that developments of the character described will ill bring it more more ad ad- I |