Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-23

out change because we need the money
Should the Senate agree to the measure
ss adopted in the House, II would virtually
double the present tax on every man, woman
and child I'm she United States for Federal
purposes making the per capita tax direct
or Indirect. S34 year instead OF $l7, as
at present
There Is n strong sentiment in the senate
for q material reduction In the amount IL II
proposed to make the present generation
pay.
TWO CHANGES LIKELY
Two vital changes are considered ccr-
tain: one is on the zone rate Of postal
increases on newspapers and periodicals,
admittedly prohibitive to many publica-
tions. The other Is on the fiat 10 per cent
increase in tariff rates on duti9ble commod-
tiles and 10 per cent ad vaiorem tax on
commodities now on the free list.
Many Democratic Senators are In favor
Of eliminating entirely the tariff features
of the measure on the ground IL Is an
abandonment Of the low tariff policy Of the
party.
TWO PROVISIONS CRITICIZED
There are two provisions In the bill which
are declared by the Senate Finance Com
mittee to be contrary TO good taxation prln-
ciples. one is the retroactive clause adding
In incomes for last year The other is the
10 per cent ad valorem tax on articles now
on the free list.
The income provision Is declared by law
yers to be probably unconstitutional If II
Is not that. 1t certainly Is an unjust nrinci-
pie OF taxation in the opinion Of some eN-
perts. The provision requires that man
shall pay one-thrd the amount he has
already paid on his income for the last year.
In other words that income may have been
spent or used in business, It is no longer
an income and therefore the payment of
such n tax IL regarded as Confiscatory The
Senate Finance Committee will eliminate IT
from the bill.
This provision of the war tax bill provides
for the levy Of an additional tax equivalent
10 33 la per cent of the tax leved upon the
incomes Of persons. corporations, joint stock
companies or associations or Insurance
companies received or accruing during cal
endar year 1916"
II is estimated that this tax would yield
an additional revenue amounting to $1OS,- |
900 900.
The exemption on incomes is also re-
duced from $4,000 for single persons to |
$1,000 and from $4,000 TO $4,000 for married |
men Those having incomes affected by the |
reduction would pay per cent.
Business men who have already con- |
tracted for raw materials for the year on the
free list basis and in turn contracted to sell |
Is unjust in that IL imposes tax at once. |
They are asking that the duty shall not go |
into effect until next January. when they |
can adjust their affairs. If it goes into |
effect at once they will suffer great business |
losses.
These two features will be greatly re-
duced by the Senate. Indications are that |
the ad yalorem tax will not go into effect |
until January, and that the retroactive IN
come tax will be eliminated.
MAY SPARE AUTO MEN
Another change which the Senate is likely
10 make is that relating to the automobile
Proposal 20 tax gross sales has
been vigorously opposed. The showing that |
Twelve large companies now make 80
per cent of the automobiles produced In the
United States and that the remaining 20 |
per cent is split up among 426 companies
has convinced many that the large number
of struggling companies would be driven out
of business by per cent increase in
heir costs Of production and that instead |
II the United States deriving more revenue
{ would in reality bring about only greater
Of the industry by the big,
'trong concerns It was shown that in
most cases the per cent increase could
lot be passed along to the consumer.
What changes are made in the bill will |
doubtless be determined to large extent
~ the decision Of the Senate Finance Com
l
'onds now so that future generations shall
'ay larger part of the costs Of war Many
senator's feel that the persons who fight
he battles should not shoulder the great
'ulk Of the costs Of war in addition. The
Ways and Means Committee worked on the |
heory that II should be split fifty-ffty. on
hat theory the country would pay half the
osts OF war as the fighting progressed |
iembers Of the Ways and Means Commit
ee feel that the United States will never
g able to bear more taxes than they pro- |
osed in their measure and that all future |
osts in addition to the money raised by IL |
lill have to be met by bond issues
Apparently, the House entirely forgot |
resident Wilson's guiding injunction, laid
own in his war address, that III men are
, be conscripted so must wealth be, also"
nd unless the Senate radically changes the
III, as it probably will, the great burden !
the wars cost is going to be thrown upon !
ie shoulders Of the average citizen, al
lady complaining Of the load Of the cost
living.
A horizontal tariff increase Of 10 per cent
4 all imports, whether on the dutiable or
zee list is provided for in the bill. This.
is estimated. would add $500, 600, 900 to
le nations revenues during the war period
everal years ago, before the enactment Of
le Underwood law, the tariff was blamed
'r the high cost of living. The restora-
on OF the entire free list to the dutlable
IT. with a 10 per cent tax, would AFFECT
le price Of many of the necessaries Of life
ome OF the close students of the bill con-
nd that an upward jump OF 10 per cent
the cost OF living would be the natural |
unnatural, sequence Of the tariff in
ease.
ON FREIGHT CHARGES
Freight tariffs would be taxed 3 per
mt. This is expected 10 yield S77, ,OOO. 900
lnually in revenue. IL would cost 10 per
mt more TO send articles by express. All
less charges would be passed on to the
innate consumer. A 10 per. cent increase II
passenger fares, and II you ride in a
lllnlan sleeper or chair car another 10 |
II cent will be charged, II the bill stands
The electric light, gas and telephone bills
III be boosted per cent. The Treasury
apartment estimates the Government will
ceive $40, 100000 a year from these
urces Of revenue If you want to use the
ng-distance phone or send a wire you'll
We 20 pay five cents additional for each
sssage costing fifteen cents or more. The
~ OF amusement will go still higher II
n so 70 a movie you will pay an ad-
lional cent for each ten cents worth. II
u take your wife 70 ball game II win
af you approximately tNenty cepts more,
a " you SO 10 the theatre. there viii be
tax of approximately forty cents on your
o llcfel4