The Union times. [volume] (Union, S.C.) 1894-1918, 1917-07-20
WAR TAX BILL COMPLETED.
Incomes Will Be Taxed Higher.
Postal Rates on Second Class
Matter to Be Increased.

Washington, July 3.-The war tax
bill, redrafted and reduced to $1,67O,-
100000 by the senate finance commit
tee as against $1,80O,00O,OOO of addi-
tlonal war taxes provided as it came
from the house, was completed today.
Chairman Simmons, of the committee,
planned to present the measure to the
senate today for consideration which
will begin after the food control prohi-
bition measure is disposed of.
Vastly increased income taxes and
levles upon excess profits resulting
from war times, liquors and tobaccos
form the bulk of the next taxation
measure, the largest in the country's
history.
Upon incomes the bill would impose
$685., 100000 in additional taxes upon
excess profits of corporations, part
nerships and individuals, $523, ,OOO,O 900,
upon liquors $155, 100000, and tobacco
$56, 6,6OO,OOO.
After formal presentation of the re-
vised bill, Chairman Simmons will
later file a report detailing the COM
mittee's work of six weeks by which
1T Is believed the measure has been
greatly improved without materially
decreasing the house revenue yield.
No additional bonds will be author
lied under the bill as any deficit, it is
believed, can be taken care of by con-
press in ample time at next Decem-
ber's session, although the measure
Will fall short by many millions of
meeting expenses of the war next
year, estimated at $2,326,OOO,OOO not
including new appropriations coming
for the army and navy.
The revised bill, which is scheduled
for material amendment in the sen.
ate and further changes in confer
ence, eliminates many objections
raised to the house measure by busi-
ness interests. 1t also provides basic
changes in revenue raising, the latter
including new plan for direct pay
ment of income taxes, instead of COL
lection at the Source" Also So
called special" taxes upon special in
duStry embraced under the house lew
OF per cent upon gross sales of many
manufacturers were eliminated. The
senate committee also rejected the 10
per cent general tariff increase, de-
signed to raise $2OO,OOO,OOO and sub
stltuted consumption taxes upon cof-
fee tea, sugar and cocoa, estimated
to yield $S6,000OOO.
Reducing of income taxation to sim
gle persons with incomes over $1,000
annually and married persons at So
600 and over, with incomes under S5.-
600, subject to new normal" tax
of per cent, were house provisions
unchanged. The committee reduced
house rates on incomes over $4,000,
decreasing the revenue return by S66,-
O00,OOO. 1t also struck out inheritance
taxes designed to raise $6,OOO,OOO and
retroactive taxes on 1916 incomes for
further reduction of $108, 100000.
After many changes, the final COM
mlttee draft contains the proposed
tax of 5 per cent upon profits of pub
fishers in excess of $4,000, estimated
to raise $7,5O0,000, and adds an in
crease of 1-4c pound on second class
postage rates, estimated to yield S3,-
0oO,OOO. Strenuous efforts are ex-
pected IN the senate for amendment of
the lmposts upon publishers.
Except for Senators LaFollette,
Thomas and Gore, the committees re-
vision has the general support of the
entire Republican and Democratic
membership, which, for the first time
IN the history of revenue legislation
united in amending the house meas
ure. The three senators who voted
against the final draft expect to advo-
cate Senator DaFollett's substitute
providing for imposition of all war
taxes upon incomes, excess profits,
liquors and tobacco.