Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-08-24
TAX FIGHT STILL
RACES IN SENATE
Friends Of Draft on Wealth
Make Counter Attacks After
First Defeat.
WOULD RAISE EXEMPTION


The battle over CONSUMPTION OF wealth
to pay for the war continued In the
Senate today. with the leaders hopeful OF
disposing Of the war tax bills income
tax section before night Once incomes
have been disposed of. the way will have
been cleared to begin the fight over war
profits, which promises to be even more
spectacular than the present one.
Todays chief contest was expected to
come over Senator La Follette's substi-
tutes for the income tax schedules pro-
posing to levy about s60o.0oo,o0o and
s5o5, 900 900, respectively, and Senator
Hollis substitute, designed to raise about
s550.00o, 900.
Leaders who oppose additional in
creases expressed the belief today that
the new proposals would be defeated.
They based their belief on the Senate's
action yesterday when, in the first test
vote. the La Toilette proposal to raise
s65s. $4,000 from individuals incomes
instead of s4so.1s4.o0o as proposed in
the bill was rejected. So to 81.
The debate developed charges that
those who desire to make the war I'M
popular and embarrass the administra-
ton were behind the campaign to in
crease the war tax burdens.
Against Exemption Cut.
The La Toilette and Hollis amend
ments to the income tax section were
passed over for the moment when
debate began today and the Senate took
up consideration of the administrative
provisions of the section.
Senator Norris announced that he would
oppose reducing minimum incomes subject
to tax to $4,000 for married and $1,000
for unmarried men, An amendment to
provide minimum of $4,000 and $4,000.
introduced BY Senator Trammei.
Subject to further consideration later.
the Senate tentatively adopted committee
amendments increasing the additional tax
Another revision tentatively approved
without objection was the elimination Of
the House provision for the retroactive tax
Of one-third on 1915 incomes.
While both provisions were approved
only in committee of the whole. II was
thought probable that the action would
finally stand.
Would Change Mail Section.
An amendment that would exempt re-
ligious, AGRICULTURAL fraternal. scien-
tif1c and educational publications which
are not organized for profit from the
provisions Of the mail rate provisions
was introduced by Senator Sterling.
Senator Hardwick, who 10 opposing an
increase in postal rates. announced to-
day he expects to ask that this section
come up for consideration next Monday.
La Toilette Substitute Defeated.
Senator La Foliette's first and most
radical amendment. one Of proposed
series. was defeated yesterday In the
Senate by vote of IS to II. The vote
on the substitute. which proposed new
income surtaxes ranging from 1 per
cent on incomes between $4,000 and
1880 to 50 per cent on those over
For the Observation-Disclosures Gore.
Hardwick. Hollis. Husting. Kirby, Me-
Kellar. Owen. Resdz Trammell and
'lfcans. Borah. Brady. Gronna, Johnson
of California, Jones of Washington,
Kenyon. La Toilette, McNary. Norris.
Poindexter and Townsend: total repub-
licans. IL. Total for-21.
Against the NEUTRALITY-SUSPICIOUS.
Bankhead. Beckham, Broussard. Culber-
SON. Fletcher, Gerry. Hitchcock. James.
Jones Of New Mexico. Kendrick, King.
Lewis: Martin. Myers. Newlands. Over
dell. Robinson. Salisbury, Shafroth.
sheppard. Shields. Simmons, Smith of
Georgia, Smith Of Maryland, Smith of
South Carolina. Stone, Swanson, Thomp-
son and Wolcott: total democrats, IS.
Republicans, Brandegee. Calder, Colt,
Curtis, Dillingham;. France, FrelinR-
huysen. Hale. Harding, Kellogg, Knox.
Lodge, McCumber. Nelson, New, Page.
Penrose. Sherman. Smith of Michigan,
Smoot. Sterling. Sutherland. wads-
worth. Watson and Weeks; total re-
lpublicans, IS. Total against-5s.
Senator Borah's Comment.
Some of those voting against the sub
stitute were expected to change and
support the other less drastic proposals
Of Senators La Toilette or Hollis.
Those opposing the movement to in
crease the rates claimed. however, to
have afty-one votes certain against any
radical proposal. and estimated the
maximum strength of the other side at
thirty to thirty-five.
Senator Borah. who succeeded Sem
ator La Toilette, discussed the hnanc-
ing OF the war. He said that II we
continue to follow the policy of levy
ing $4,000, 900. 900 taxes for every eight
or ten billion dollars Of bonds the
mortsaging Of posterity for 100 years
or more will result.
Secretary Tumulty has authorized the
statement that reports that President
Wilson had been supporting the at
tacks upon the revised draft of the tax
bill were absolutely unfounded and
that the President had been taking no
part in the controversy.