Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-07-29
Provision Written Into Meas
ure by A, 40 Jones of New
Mexico Is Cause of Extend
cd Discussion During Session.
,000,000,O0O PROBLEM
GOES FIRST TO HOUSE
Incomes Are to Bear Heaviest
Burden Imposed by New
Condition; Excess Profits
Caught Hard Already,
Isv MORNING JOURNAL SPECIAL Ls.ssp w,ssI

Washington, July 2S.-The senate
finance committee reached a tenta-
tive agreement late today to revise
the present $1,670,000,000 war tax
bill SO as to raise at least $1,943, ,0O0,-
600, the larger part of the increase to
come from higher income taxes.
Members of the committee said to-
night it is possible the total of the
bill before it gets to the senate will
be $4,000 100000 According to the
present plan about $2S0,000,00 of
the increase will be obtained through
higher income tax rates-$70, 900, 900
from individuals, and the rest from
corporations
Where Taxes Fall.
The committee fixed on an increase
in the normal rate on individuals
from to ) per cent and on CORPORA
tions to per cent. The rest of the
increase may be obtained by increas-
ing the excess profits tax and by con-
sumption taxes on sugar, tea. coffee
and cocoa.
Under the program $1,062,700,00
would be the total levy this year upon
incomes The present law yields
$500, 900, 600. The pending bill origi-
nally was designed to increase this by
1882, 700, 900 and the $3.50, 100000 ad-
ditional it is now proposed to levy
would raise it over the billion mark.
House Must Act First.
The senate will confine its work
for the present to the present war tax
bill and will leave to the house tho
task Of raising the rest of the $1,000
100000 the administration believes
it must have to prosecute the war
this year Majority Leader Kitchin OF
the house was in conference with the
senate committee today and this de-
cision was reached as a result of his
that the house might re-
sent any senatorial infringement on
It's constitutional prerogative of insti-
Luting revenue legislation. Whether
the house will prefer to authorize
IS, 200, 100000 in bonds or treasury
certificates to supplement the $4,000
10000, the senate is providing, will
not be determined until next week.
The decision today to leave to the
house the task of providing $1,000
100000 additional promised greatly to |
expedite senate action on the pending |
'evenue bill. Senator Simmons said |
he committee plans to complete it's |
'evision Tuesday and report the bill |
o the senate beginning the debate |
he latter part of next week.
Funds Ample to December.
Senator Simmons said tonight there |
G no immediate necessity for the SEN |
'te to consider revenue questions be-
'ond the bill. there being ample !
unds to meet all calls until Decem-
)er.
The committees agreement to in
'rease income tax by s230,00O.-
100 in increasing the pending tax bill |
rom $3.50, 100000 to at least
II ,943, 100000 was said TO be based
,pon belief that the bulk of the in
rease should come from incomes
ather than war profits, already heav-
ly taxed in the bill.
The committee gave much time to
discussing reconsideration of the
mendment already written into the
I'LL. levying tax Of Is per cent upon
orporations' undivided or undistrib-
tied surplus. This Is known as the
mendment of Senator Jones of New
iexico, and has been vigorously OPP
'osed by corporations. There was
much opposition to changing this sec
ION.