The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-09-11
La Toilette. Borah. Gronna and
Norris Fight Record-Makins
Measure to Las.
EXPECTED TO RAISE
SUM OF 81, 4o6, $40, 600
Incomes and Excess Profits to
Bear Chief Burdcn-HCon-
sumption Lcvies on Food
Are Stricken Out

Washington, Sept. 10.--The two
and one half billion dollars war rev.
enue bill was passed by the senate
tonight hy a vote of So TO L. Sena-
tors Borah. of Idaho; Gronna. OF North
Dakota; La Toilette. of Wisconsin.
and Norris, of Nebraska. voted against
the measure. Others who had fought
hard for extreme taxation of wealth.
lis. of New Hampshire; Reed, of Mis-
souri,. and Kenyon. of Iowa. all voted
aye"
In the last hours OF the passage OF
the bill the consumption taxes upon
coffee, tea. sugar and cocoa were cut
out of the bill. So were the postal
increases on second-class mail mat
ter, which would have affected chiefly
newspapers and magazines
Senator Hardwick's proposal TO tax
incomes above-sS0, 600 a nat 10 per
cent and use the revenue to pay
American soldiers In France $50
monthly bonus was overwhelmingly
rejected by viva weee vote An at
tempt to substitute an entirely new
bill was made by Senator La Toilette.
This would have raised about three
and one-hslf billions on income. taxes.
war profits and tobacco and liquors.
he asserted, The senate refused to 40
cept 1t.
Sugar Drawback" Stands.
The senate declared itself unwilt-
ing to uphold the finance committee
In repeating the drawback" upon
sugar brought here. refined and then
exported, The drawback still stands
as q law. Last year i would have
paid $ls,oon.o0o to the government
In taxes. which. without the draw
back, the sugar rsnners would have
to pay as tax
AT the last moment Senator Bran
deEee. OF Connecticut. succeeded In
having operation of the bill confined
to the duration of the war.
The bin now goes to conference be-
tween the house. and senate where the
differences viii be threshed cut II Ia
hoped that within fortnight all mat
ters of dispute will have been adjust ed
and the president will be able to af-
fix his signature and convert the pro-
posed taxation into law. Senators
Simmons, stone. Williams, Penrose
and Lodge were appointed to repre-
sent the senate In the conference.
Voting upon the bill began at 4
p. NJ. but II was T;45 before the last
ballot was taken, Determined fight
ing by the advocates of Increased
postal rates took up much OF the
time,
The great war revenue bill In the
largest taxation measure ever contem-
plated by this nation. AS we'll as can
be estimated. It will raise by taxation
about 81 4os, $40, 900,
( In the last minutes of its passage
sss,oo0.oo0 OF Consumption" taxes
upon coffee, tea, sugar and cocoa were
cut from the bill, as we'll as $4,000,
600 which was to have come from in
creased postal rates on second-c
matter. These sums II added would
haze made the bill run sie, 900 900
more.
Bills Main Features.
The bill stands in this form as 1t
goes to the conferences between the
house and senate:
Incomes. ss42.2oo.oo0
War excess profits, 81 .ose. 1000. 900.
Liquors. s2is. 100000
Tobacco. s56.eo0.000.
Transportation. t14l.75o. 900.
Automobiles. etc. s4s,i6o,ooe.
Admissions, s1s,0oo,o00.
War stamps. s22 900. 600.
Virgin Island products, s2o.0
Total. $2.4oS. $40. 900.
BY far the greater portion Of the
bill is derived from the taxes upon In
comes and great profits made during
the prosperous war years.
The excess profits section will total
81, $50, GOO, 600 and the income tax sec
ton sS42. 100000. Thus about $4,000
100000 will be realized from those
two sources alone Existing taxes
upon excess profits now yield s22s.-
100000 and income taxes some s14s,-
100000. The senate committee in
increased the war expenses. profits
section Of the bill from 1852 100000 to
$1,000. 100000. The house ch,duie I'M
der this head was 5000. 0oe,00
Excces Profits Tax.
Taxation is imposed upon the war
excess profits by a graduated scale
system. based upon the difference he
tween an average of profits taken
during three pre-war years and the
profits Of 1917 The scale with the
WELD follows;
IL per cent on excess
profits up tn Is per
cent -. 500. csc. 900
16 per cent on between
Is and rs per cent. 46.0s0. 600
20 per cent between 25
and so per cent $500. 100000. 600
IS per cent between so
and rs per cent .. 1oi, 900, 600
80 per cent between rs
and 100 per cent 49,. s2,2o0. 900
IS per cent between 100
and $50 per cent 49,. i2o,o5s. 600
40 per cent between $50
and 200 per cent .... 100000. 600
As per cent between 200
and $50 per cent .. S4.f5o, 600
so per cent between ESQ
and 400 per cent 1880. ooe
so per cent on profits In
excess Of 800 per cent 4s2.es0. 900