Arizona republican., 1917-09-06
b|[ | |)N INCREASE
 IN TAXES
Republican A. p. Leased Wire1

WASHINGTON, Sept. 5.-The sen ate's bitter fight over war profits tax alton virtually ended late today with adoption of the finance committees compromise provisions for a total levy of s1, 1,2S6, ,0OO, 900 or about one third of this years war and normal excess profits.
 This is an icrease of S1,060, 000, 900 over present taxes. The high tax ad- yocates failed to secure adoption of a single amendment
 The vote on the adoption of the fi- nance committees draft was 72 to '. The seven were: Bankehad, Borah, Gronna. Johnson of California, La Fol lette, Underwood and Vardaman.
 Action on the war profits section, the largest revenue producing provis- ion, was taken technically in commit tee of the whole and is subject to final review later Today's decisive route of the high tax element, senate leaders say. forecasts defeat for the fight be- ginning tomorrow for heavier income taxes.
 With adoption of the finance com mittee's war profits provisions-in- creased by the committee from s562,- 000,000 to s1,060 000,0 900, after the high tax senators began their fight-the bill totals s2,522, 900 900, near which fig ure it is expected to remain. Many senators, however predict ultimate elimination of consumption taxes. az gregating sS6, 900, 900: second class mail increases of 12,6O0 900; freight taxes of SIT, ,5O0,O00, and stamp taxes on par eel post packages estimated to yield about $S,00O,000
 In the contest between those advo- eating and opposing higher taxation of war profits, largest muster of the high tax group was 20 votes This came today on an amendment of Sen ator Johnson of California, to increase the maximum graduated rate from 50 ot TO per cent. Supporting it were:
 Demo era t s-Ashurst, Beckham Broussard, Chamberlain, Fletcher Hollis, Husting, Johnson, South Dako- ta; King, Kirby, McKellar. Myers Overman. Phelan. Shafroth, Sheppard. Thompson. Trammell, and Vardaman -19
 Republicans-Bo Brady. Gronna, Johnson of California; Jones of Wash
 ington; Kenyon, La Toilette, McNary, Norris and Sutherland-10-29.
 On the final vote of 72 to ', after all amendments had been defeated except
 minor provisions accepted or offered by Senator Simmons, in charge of the bill, many of the so-called radicals voted for the committee draft. As now written into the bill the profits section strikes out the house provision for an additional tax of S200,- 0Co,000 and is a substitute for the pres ent excess profits law now yielding s226,000,000. The total levy of the new provision is estimated at s1 5000. 900 It also extends the tax to ordinary normal peace profits in excess of 1G per cent in addition to excessive war profits, reached by graduated rates amounting to surtaXes, ranging from F to 60 per cent. The excess is based upon the net income above S5,000 o1 corporations, partnerships and individ- uals in trade or business over the av- craze of 1911, 1912 and 1913-the pre- war standard-with a minimum ex- emption of 10 per cent. The graduated rates and their esti- mated revenue yield follow 12 per cent on excess profits up to 15 per cent $100, ,080,000
 Is per cent on between 16 and 25 per cent $46,0S0.000.
 Is per cent on between Is and 25 per cent S46,0S0000.
 20 per cent between p and 50 per Continued on Page Two)