The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1917-08-06
Reported to the Senate This
Morning by Chairman
Simmons.
DEBATE BEGINS THIS WEEK
Is the Largest Tax Budget
in the History of the
American People.

WASHINGTON, Aug. 6.-The war
tax bill finally revised to meet
latest estimates was favorably re.
ported today by the Senate finance
commission. 1t proposes to raise
S2,006, 100000 by taxation.
The revised bill proposed 81, $4,000
dollars in new taxes. No provisions
for additional bonds to be considered
later by the House are made in the
Senate bill.
Chairman Simmons plans to call up
the revised bill for debate the latter
part of the week and hopes for its
final enactment by congress early
next month.
Most of the new taxes proposed
under the revised bill for war ex.
penses for the present fiscal year
would come from incomes war eX.
pense profits, liquor and tobacco
taxes.
The majority report was submitted
by Chairman Simmons, who explain
ed that the committees revision of the
House bill was on the principle of
raising revenues with the least bur-
den upon the public. A substitute re-
port with substitute bill is expected
from Senator LaFollette; Senators
Gore and Thomas also plan a sepa-
rate report.
Senator Simmons report that
flexible scientific war tax superstruc-
ture had ben constructed by the Sen
ate Committee for the imposition of
war taxes-the largest tax budget in
American history-as well as for fu-
ture tax increases declared probable.
Income, war profits, liquor and to-
bacco tax increases, the majority re-
port pointed out, form the nucleus of
the revised bill.
In a general statement for the com
mittee, Senator Simmons said:
ut has at all stages acted with
keen sense Of the extreme Importance
Of its action in its effect upon the
country and the successful prosecu-
ton of the war. Nor was 1t unmind-
full that those who will have to pay
these exactions will also have to fur
nish the larger part of the money to
purchase the bonds for expenditures
not provided for by taxation and also
as we may be called upon to loan to
foreign governments engaged with us
in war against Germany.
your committee was profoundly
impressed with the expectancy and
necessity OF broadening and develop
ing and developing our system of
special taxation so as to present sci
entific scheme, logically constructed;
to provide superstructuTe sufficient
ly strong and flexible to meet not
only our present but our future war
needs, and so adjusted as to distrib-
ute equitably the necessary burdens
OF taxation and safeguard the activi-
ties Of the nation by imposing no tax
which would not leave the tax payer
a reasonably compensatory return
from his investment.
1.-THE basis Of the system proposed
by your committee is the income and
war profits taxes, Internal revenue
taxes upon whisky and tobacco, and
certain moderate subsidiary evies in
the nature of excise taxes. The sys-
tenn presented is in form much the
same as that in the House, but it has,
it is believed, been systematized, CO.
ordinated and made more consistent.
"As the result Of these changes it
is estimated that about two-thirds of
the additional revenue expected will
come from the income and war profits
taxes. In fixing the rates upon in
comes and excess profits your COM
mittee kept constantly in mind the
fact that the amount of revenue de-
rived from these sources would de-
pend upon the prosperity and activ-
ity of business, and that toNimpose
taxes which would tend to discourage
enterprise and dampen these activi-
ties would tend to defeat the legisla-
tive purpose. Moreover, 1t thought
that IL the rates upon incomes and
excess profits we're fixed at the high
est level there might be but little
margin left for further increases in
rates."
The report defends the elimination
Of the so-called Lenroot sur-taxes on
incomes Of over 40, 900 added in the
House, designed to raise S66,OOO, 900,
as follows:
IN view of the fact that in addi-
ton to the large increase In the nor
NAL tax and surtaxes upon incomes,
the bill provides for largo increase
in the war profits tax Of corpora
tions and partnerships and includes
individuals in the scope of that tax,
and In view Of the probability that 1t
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