The Robesonian., 1917-08-09
THE WAR TAX Bill,
Finally Revised to Meet Latest Es-
Inmates and Reported to Senate
Finance Committee-Sourse of New
Tovco

Finance Committee-Sourse of New
Taxes
The war tax bill, finally revised to
meet latest estimates, was favorablv
reported Monday by the Senate Fin
ance committee. 1t proposes TO raise
s2,OO6, 6,97O,O00 by taxation.
The House bill proposed s1,S67.-
oOo,OOO in new taxes. No revision
for additional bonds, to be considered
later by the House, are made in the
Senate bill.
Chairman Simmons plans to call uo
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 un-
der the revised bill for war expenses
OF the present fiscal year would come
from incomes, war excess profits,
liquor and tobacco taxes.
The revised Senate bill strikes out
the retroactive tax upon last years
incomes but, principally by increas-
ing surtaxes on wealthy persons and
by doubling the normal tax on corpo-
ratlons, proposes to raise s777,00O,-
900 in addition to the 1890, 900 900
now secured from incomes. 1t pro-
poses levy of S562,OOO,OOO on war
profits and extends the tax to indiyid-
uals as we'll as corporations.
The House tax yield on distilled
! spirits of S1O0,O00,00O is raised tc
! S135 100000; that on beer from S37,.
100000 to S46,OOO,OOO, and that or
wines from s6,000,0O0 to S21 900 900
A prohibitive tax on further manu-.
facture or importation of distilled
beverages also is provided.
j The original Senate committee pro
vision for an increase of ID Of ]
cent a pound in publishers mailing
rates and a five per cent tax upor
their net incomes over $4,000 in liel
of the House plan for increasing pos
tai rates by a zone system, was re
tanned. The House provision REIN
posing Spanish war stamp taxes wer
substantially retained.
The total estimated increase il
5 Federal revenues Of S2,006,970 90
: proposed under the amended bill wa
said today by Chairman Simmons an
2 Treasury experts to be conservative
Many of those in charge of the re
e vision believe the bill will in actua
t operation yield many millions more
S. Defending the new plan of taXin
o war profits, the report said:
: "The House bill would impose
Il tax of Is per cent on excess profit
Britain's war profits are now take
: 80 per cent, Canada's were increase
l. Zealand rate theSdraeetaoinshrdlC
! from 25 to rs per cent, and the Ne
7, Zealand rate is As per cent. Tt
S Hcommittee proposes linstead of a
e excess profits tax war profits ta
IS The change Of basis seems desirab
o because it's successful collection wi
be greatly facilitated. The commi
tee reached the conclusion that
y graduated tax beginning with II o.
J. cent. and reaching so per cent at i
than a flat tax of 16 per cent"
a per cent on undivided corporate i
Id comes, the report said:
1r "Neither existing law nor Il
a. House bill imposes a surtax on u
distributed earnings of corporation
ID In these conditions the earnings
j, corporations escape surtax. Th
d seemed to bring about an inequali
le between the corporation and the j
II dividual. Your committee believ
Id the situation would be best met
imposing the surtaxes upon such pc
" ton Of corporate retained surplus n
is retained for employment in the bu
7e mess and by imposing the addition
e. tax of two per cent. upon corpora
IS incomes while imposing on individu
De incomes only an additional tax equi
a. alent to one per cent of the Norm
tax"