The evening times., 1898-05-07
WAR TAX MEASURE DRAGs
Senate Committee Proceeds With
Painful Deliberation.
SPARRING BACK AND FORTH
Corporations Will BE Taxed on
Their Gross IncOmes-N0 Substi-
Gross Inequalities In the House
Biil.

| From present Indications. the war will
| be over by the time the Senate Finance
Committee reaches a conclusion on Its
war revenue bill. This delay is not due
| TO any particular faction in the COM
| mittee. The Democrats are not ready
with the amendments they propose to
| offer, nor are the Republicans prepared
to submit the changes they wish to
make to the House provisions. The SPAR
ring back and forth continues. and the
separate conferences Of Thursday do
not appear to have brought the con-
| ficting elements any nearer together.
Upon one thing only do the Democrats
seem TO have come to a definite under
standing. and even that is tentative.
ment taxing the gross receipts Of all cor
porations, but the rate of that taxation
was left blank, subject to future con-
sideration. At first they intended to
make the rate 2 per cent. but this was
deemed too oppressive; then the figure
was cue to 1 per cent. but this several
of the ma jority held to be too low. A
compromise between these rates will
probably. be accepted. At per cent a
tax on the gross receipts of the corpora
tions of the United States would net
more than $4,000. 900. which will go long
way toward the realization of the desire
of the Democrats TO double the amount
of revenue sought to be raised by the
bill
The Bond Issue.
On the subject OF substitute for the
proposed bond issue no agreement has
been reached and the Democrats are still
undecided what sort of a proposition to
submit. These propositions. as has been
previously stated. contemplate the COIN
age of the seigniorage, the issue of green
backs and the issue of certificates of in
debtedness.
II, however, the proposition to raise the
internal and stamp taxes to the highest
possible point prevails 1t would look as IL
no substitute for bonds would be neces-
~
that the Senate will adopt the extreme
suggestions that may be found in the
bill when 1t is reported. As a sample Of
this extreme idea may be cited propo-
sition suggested yesterday that a license
tax be required in connection with the
transaction of certain kinds of business.
but IL this sort of taxation is entered
upon the door once opened 1t will be very
difficult to draw the line.
Many Erorrs.
The study of the bill has developed |
many errors that will doubtless be cor
rected before the bill leaves the commit |
tee. Many of these mistakes are patent |
to anyone who cares to read the bill and |
show up its injustice and inequalities. |
Take, for an instance, the stamp taxes |
under schedule A, pertaining to passage |
States to any foreign port. The rate pro-
vided is 81 for a ticket of less than $50. |
and IS for every ticket exceeding $50;
nowhere in the bill Is there q tax as
sessed on tickets selling at $50 straight.
The provisions taxing mortgages as
1rawn in the House bill operates unjustIy
upon the poor. and these war taxes are
supposed to be intended to force the rich
to pay their share of the extraordinary
expenses. Not only is the smallest kind
If mortgage taxed, but SO is the note
hat is secured by the mortgage. The
committee, It is urged, ought to elm
nate those mortgages that represent
he transactions of those who have
'een compelled to borrow small sums
II money or. at least. to relieve
hem from the burden Of paying the
AK in a two-fold manner. This para
,raph, 1t is claimed, operates unfairly
lgainst the debtor, and is to the advan-
age Of the creditor, for everybody knows
he money lender will compel the bor-
over to pay the stamp tax.
The same injustice is manifested In the
ak on a power Of attorney. Under this
revision poor pensioner who wishes to