Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-07-04
COMMITTEE COMPLETES
LABOR ON WAR TAX BILL
After Six Weeks in Redrafting, It Is
Reported to Senate by Chair
man Simmons.
1T PROVIDES s1,e7o,17o,oo
This Amount Less by $13O,OOO,O 900
Than Proposed by House-Meas-
ure Will Come UP for Action When
Food Problem Is Disposed OF.
IBy Associated Press. !

[By Associated Pressl
WASHINGTON. July 3.-Predictions
Of bitter fight in conference between
the House and Senate over the war
revenue bill unless drastic changes are
made by tho Senate in the draft its
Finance Committee reported to-day
were made tonight by Representative
Rainey. ranking Democratic member Of
the House Ways and Means Commit
tee.
Primarily. Mr.. Rainey said. the total
OF the Senate draft. sl.670,000.000. must
be raised. The House, he believes. Will
insist on the measure carrying at least
the $1,S00.000,000 originally proposed.
on the ground that Congress has no
right to mortgage the future TO any
greater extent than by the $1,000. 000.-
600 OF war bonds already authorized.
Mr.. Rainey declared the Senate meas
ure was a rich mans bill. and that the
House would stand pat on demand
that the burden be transferred from
the should, g of The poor.
From the ealthy mans viewpoint"
he said, "the ), nate draft certainly is
an excellent me. 1lre. 1t would lift
Income. automobile. -etroactive income
and other taxes from he wealthy and
settle tho burden on te. sugar, cocoa
and other necessarics Va, in every
home. I cannot believe that ,ere will
not be changes made on the noor."'
The Lenroot amendment, greatly in
creasing taxes on incomes above s4o,-
600. adopted by the House. but stricken
out by the Senate committee. is almost
certain to BIO restored. Mr.. Rainey be-
lieves.
Perhaps the most illogical pro-
posal of ALL" he declared. lis the pub
fishers tax. why should he pay an
income, excess profits and a special
tax toor'
Unsatisfactory as the Senate draft
is tho House leaders say II still can
be made the subject OF conference.
REDRAFT IS REPORTED
BY FINANCE COMMITTEE
Providing taxes for war purposes of
$1.67o.17o.ooo. about $4,000. 600 less
than the House authorized. the war tax
bill as revised by the Senate Finance
Committee after six weeks work was
reported to-day to the Senate by Chair
man Simmons. 1t will be taken I'D
after the food control measure is
passed.
Vastly increased income taxes and
levies upon excess profits resulting
from war timaa. liquors and tobacco
form the bulk OF the new taxation
measure, the largest in the country's
history.
Upon incomes the bill would i'm
pose $532.700.0oo in additional taxes.
upon excess profits of corporal tons.
partnerships and individuals. ;5aa. ooo.-
600; upon liquors. s155,ooo.oo0. and to-
bacco. $56.6o0.0oo.
WILL FILE REPORT
OF COMMITTEES WORK
After formal presentation of the re-
Vised bill. Chairman Simmons later
viii fle report detailing the COM
mittee's work Of six weeks, by which
1t is believed the measure has been
greatly improved without materially
decreasing the House revenue yield.
NO additional bonds will be au-
thorized under the bill. as any deficit,
II IL believed. can be taken care of
oy Congress in ample time at next
DEFENDERS session. although the meas
ure Will fall short by many millions
or meeting expenses Of the war next
year, estimated at s2.326. 0oo, 900, not
appropriations
Tor the army and navy.
The revised bill which Is scheduled
Tor material amendment in the Senate
and further changes in conference,
eliminates many objections raised to
the House measure by business in
terests 1t also provides basic changes
in revenue raising. the latter includ-
ing a new plan for direct payment of
income taxes instead Of collection at
the source" All so-called special.
taxes upon special industry embraced
under the House levy Of per cent
upon gross sales Of many manufac-
turers were eliminated. The Senate
committee also rejected the 10 per
cent general tariff increase, designed
to raise $200.000.000. and substituted
consumption taxes upon coffee, tea.
sugar and coco. estimated to WELD
100000.
Reduction of income taxation to
single persons with incomes over 1000
annually and married persons at $4,000
and over, with incomes under $4,000
subject to new normal" tax of Q
per cent, were House provisions un-
changed. The committee reduced
House rates on incomes over $4,000.
decreasing the revenue return by
S66,0o0,000. 1t also struck out inheri-
ance taxes designed to raise Sc, 900, 900
and retroactive taxes on 1916 incomes
for. further reduction of sos, ooo, 900.
CONTAINS PROPOSED TAX
ON PUBLISHERS PROFITS
After many changes. the final COM
nittee draft contains the proposed tax
Of per cent upon profits of publishers
in excess of $4,000. estimated to raise
$7.500,000, and adds an increase Of
IA cent pound on sccond-class post
age rates. estimated to yield $4,000, 900.
Strenuous efforts are expected in the
Senate for amendment of the imposts
upon publishers.
Except for Senators La Toilette.
Thomas and Gore, the committees re-
vision has the general support Of the
entire Republican and Democratic
membership, which, for the first time
in the history OF revenue legislation,
united in amending the House measure.
The three Senator'S who voted against
the final draft expect to advocate Sena-
tor La Follette's substitute providing
for imposition of all war taxes upon