El Nuevo mexicano., 1917-08-23
ADOPTS
HEAVIER TAX
ON ALL INCOMES
OVER 100000
.NN.MN NL| N.|N .#4L H.H aL
Gerry Amendment to
Add $40,375,0O0 to
War Tax Bill
u. S. STEEL MAY
PAY $148,0 O0,0 900
(Hy Leased Wire to New Mexican.)

(By Leased Wire to New M~exican.)
Washington, Aug. 22.-After pro-
tracted debate In which many sena-
tors urged heavier levies on incomes
and war profits in the war tax bill,
the senate today tentatively adopted
Senator Gerry's amendment which
would add $40,375,0OO by greatly in
creasing surtaxes on incomes exceed
ing 100000.
Senator Lodge defended the o
sumption taxes, declaring the chief
source of war taxes should be war
profits. Under the house excess
profits plan he explained, the United
States Steel corporation would pay
about $21, 000, 900 while under the
bill as amended in the senate commit
tee it would pay about 100000
not including about $52, 000, 1000 in
other val taxes.
Enemy Trading Act
The trading with the enemy act,
passed by the house today, was re-
ported favorably to the senate by the
commerce commission amended to
permit enemy insurance or reinsur-
ance companies to continue business
in the United States under certain
conditions and permit abrogation OF
contracts made with enemy subjects
for delivery of products after the war.
The committee also adopted an
amendment authorizing the federal
trade commission to license citizens
to take over and use enemy owned
patents and to fix their value.
Under the German amendment the
total tax levy on all millionaires' in
comes, including the present law,
would be 81 percent. With the Gerry
amendment the bill would aggregate
50, 035, 900, 900, with several amend
ments by Senator La Toilette pending
for further increases In the income
tax rates. The Gerry amendment was
adopted without a dissenting vote.
Charges that the government has
been defrauded out of fully 5000, OOO,-
600 in income taxes evaded by the
wealthy were made in the senate by
Senator Lewis, of Illinois, who declar-
ed the treasury department had the
proofs.
Senator Lewis was speaking in sup
port of Senator Gerry's amendment to
the surtax bill to greatly increase
taxes on great incomes. There has
been inconceivably ingenious lying on
the income tax schedules before the
finance committee that would in other
subject those responsible to
perjury" said he.
"In the treasury department at this
hour is proof of $500, 000, 900 swindled
out of the government by fraud, per-
jury, deception and other different
forms of commercial trickery in the
tax returns. If it had not been
for a certain set of men who, prating
about patriotism and crying for
war, there would have been nc neces-
sity for levying the heavy burdens Of
the bill"
Senator Lewis also said that had
this set Of very wealthy men shown
and honesty in making their
tax returns the government
would in past years have had ample
funds for preparedness purposes.
All Of the Lenroot amendments as
by the house were retained
by the senate after reductions pro-
posed by the finance commission were
on two test votes.
On a test vote for elimination Of
he so-called Lenroot amendment made
the house providing twenty-five per
cent increase in surtax rates on in
comes exceeding $4,000 and raising
ibout $66, 900 900 in revenue, the SEN
tie voted IS to 80 against their elm
nation by the finance committee.