Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-09-05
H|GH-TAX PLANS
ARE BOWLEDO OVER
Three More Proposals for In
creased Levies on War
Profits Defeated.
MAJORITIES OVERWHELMIN NG
Fight for Flat Rate Ends, and
Contest Enters New
Stage.
AAJORITIES OVERWHELMING
fBy Associated Press. I

WASHINGTON. September An
rapid succession to-day the Senate
bowied over. by overwhelming ma
jorities. three more proposals from the
group of Senators seeking to increase
the levies on war profits in the tax
bill.
An amendment by Senator Hollis to
tax war profits only at higher rates,
and to strike out the Finance Com
mittee's new clause levying s42s.000,-
900 additional on ordinary excess
profits. was rejected. 81 to H. Then,
without debate. one by Senator La Fol-
lette to fix nat rate OF so per cent
designed to raise not less than $780,
100000 on war profits. was beaten,
so to Is. The minimum fat rate pro-
posal OF so per cent Of the hiEh-tax
group presented by Senator Hollis.
was voted down. So to IS
NEW STAGE Is ENTERED
AFTER THREE SETBACKS
With three setbacks. the fight to sub
stitute a fiat rate for the graduated
system OF the excess war profits sec
tion virtually ended and the contest
entered new stage. Before the final
unanimous agreement for late to-mor-
row. the high-tax faction plans an ef-
fort to raise the graduated rates now
In the bill.
To-day's session. shortened by a re-
cess to permit Senators to join in the
parade in honor of the District of CO.
lumbia's drafted men. was marked by
spirited Tits in the last stand Of the
1T 70
general rate on war profits The group
still hopes to increase the tax levy by
raising the graduated rates. but FL
nance Committee leaders are confident
that the bill will stand substantially
as now written-providing for a levy
OF about one-third on war profits, or
an increase of $l.06o.ooo, 900 over the
present revenue of $4,000. 600.
Senator'S Hollis and kenyon. TO-DAY
led the discussion for the high takers,
with Senator Smoot leading the de-
fence of the Finance Committees draft.
bill totaling >4.ooo.0oo.o0o was urged
by Senator Hollis.
In bitter terms. Senator Kenyon
scored the Senate for voting down the
increases proposed. He spoke of
"treasonable profits" and said made
quate conscription OF wealth and i'm
position of irritating consumption
taxes on the mass.s of the people
would be responsible for unporularity
Of the bill
FEARS CORPORATE EARNINGS
WOULD ESCAPE TAXATION
Senator Smoot attacked the Hollis
plan to exempt normal but extremely
large excess profits from taxation, as
serting many millions of ordinary cor
porate earnings would escape taxation
by the proposal
In the three votes to-day the high
tax faction both gained and lost sup
porters. Their highest record of twenty
votes was made yesterday on the 70
per cent war profits tax proposal of
Senator La Toilette.
In the shifting of the contest. sew
'eral graduated amendments which Sem
ators La Toilette. Gore. Brady. Ken
yon and others. had pending. were not
offered. Tomorrow Senator'S Hollis.
Kenyon. Johnson (California). and
others will propose various increases
In the bills graduated rates.
Senator Bankhead's substitute for
the war profits section also is to be
disposed of before tnc final voting.