New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-18
War Tax on Auto
Owners Adopted;
Wine Levy Raised
Senate Almost Clears Way
for Fight Over Incomes
and Profits
Observation-Disclosures
Action on Assessing Publish
ers' incomes Is Deferred
Until Next Week

WASHINGTON, Aug. 17.-Disposition
by the Senate to-day of many uncontest-
ed provisions of the s2,0O6, 100000 wal
tax bill almost cleared the way for the
sharp fight which probably will begin
Monday over income and war profits
taxes.
Among important features disposed
Of during the day were the wine and
motor vehicle schedules. The revi-
sions of the Finance Committee levy
ing between $4,000 600 and S5O,OOO,OOC
on owners OF motor vehicles instead
of s68 600 900 on manufacturers, as pro
posed by the House bill, were adopted
as were the increased rates on wines,
estimated to raise S21 100000, against
s6 .OOO. 900 under the House rates.
House provisions levying per
cent tax upon gross sales OF many
manufacturers and designed TO raise
Sl1S.750,000 also were formally ellml-
mated. the new automobile ana otner
reduced excise taxes being substituted.
The Senate also accepted the FINANCE
Committees action in striking out the
House provision for additional TAXA
ton of inheritances designed to raise
Sc. 900. 000 New England Senator'S pro-
tested that inheritances are prime
source of local state taxation and
should not be interfered with by the
Federal government. -,
An amendment TO the automobile
section suggested by Senator Knox and
adopted imposes surtaX OF SD Tor
each $500 value on cars costing more
A faA
now provides the following motor We
hicle taxes, payable by owners of those
not used exclusively for business pur-
poses:
costing under $500, so annually; cost
ing between $500 and $3.50, $3.50; cost
ing between $3.50 and $1,000, $40, with
S. additional for each $500 up to $4,000,
and $40 for each $500 above $4,000.
The tax, based upon original list
price, would be reduced by 10 per cent
for each years use of the machine up
TO a gross allowance of 80 per cent.
Senator Smoot said that the motor
tax would fall on those able to bear IT.
ANY person using an automobile with
present prices of gasolene and sup
plies, he declared, could well afford
the tax.
Senator Kirby objected to the trans
fer of the tax from automobile manu-
facturers to owners, declaring the au-
tomobile industry is more profitable
than any other except munitions.
Senator McCumber, Of the Finance
Committee, replied that a majority OF
the committee preferred tax upon
manufacturers, but could not devise a
plan to impose it equitably, as many
automobile manufacturers were max
ing small or no profits, and only few
large returns.
The proposed special tax on pub
/ fishers incomes and the increase in
second class postage rates were de-
bated at length to-day, but action was
deferred. probably until next week
! Senator Hardwick urged that the Sen
ate adopt his amendment, approved by
! the Postoiice Department, levying a
special tax upon advertising portions
/ of second class publications, and elimi-
nate the proposed tax on publishers
/ incomes.
I Senator Mcclellan spoke in behalf OF
| his amendment for zone increase in
/ the publications postage rates, de-
signed to affect magazines rather than
newspapers.