Middletown transcript., 1917-07-07
WAR TAX BILL
. IN THE SENATE
Measure Virtually Rewritten BY
Finance Committee.
PUBLISHERS TAX LEFT IN
Excess Profits To Bear Larger
Share-GeneraI 10 Per Cent. Iar-
iff Eliminated-Liaht, Power
>and Gas To Escape.

shington-Revision of the ST.
800, 900, 900 War Tax bill passed by the
House Eve weeks ago was completed
by the Senate Finance Committee.
The measure virtually was rewritten
and reduced to $1,652, 10000, with no
authorization of additional bonds.
Incomes and excess profits will bear
about two-thirds of the new tax bur
dens under the revised bills-about
hale billion dollars each-with large
share of the remainder secured from
liquors and tobacco. Many House
taxes were entirely eliminated by the
committee and others added.
Radical increases of taxes on war eH-
cess profits of corporations, partner
ships and individuals, decided upon to-
day, enabled the committee to dis
pense with the suggestion made Of ad-
ditional bond issue Of from $500, 000.-
900 to $1,000 100000. Senator Stone
withdrew an amendment for $780,
100000 ISSUE While the bill falls
short by about $500, 100000 of meeting
the Treasury estimates of war expense
next year the committee decided that
by issuing 35,0O0000 of authorized
but unsold Panama Canal bonds the
expense can be met until congress re-
convenes in December.
Publishers Tax Retained.
AS finally drafted the much-debated
publishers tax section proposes a
per cent. tax upon publishers profits
over $4,000, yielding s7,5O0.OoO reve-
nue., and an increase of n cent
pound in second-class postage rates.
yielding 100000.
Excess profits due to the war under
the revised bill would bear $730,000.0 06
in taxes graduated from II to 40 per
cent. according to proportion of ex.
cess.
From income taxes 1892, 100000
would be raised, $66,O0O,00O less than
the House proyided-the decrease be-
ing made entirely upon incomes of
$4,000 annually and above-with the
committee approving the House plan
of lowering income tax exemptions to
$1,000 for single persons, $4,000 for
married persons. additional normal
taxes of per cent. upon incomes up
to $4,000. and surfaces graduated from
to 80 per cent. upon larger incomes.
Comparison OF Two Bills.
The committee also changed tho
~ NJ to-
that of collection at the source" to
information at the source" to accom-
plish direct payment.
A comparison Of the estimated
revenue to be gained from other
sources under the revised bill and the
House bill, respectively, follows:
Liquors, $155,OOO,0OO, against $751;
100000; tobacco, $56,600,O0O, against
sos, 2tt, 900; freight transportation
$77,5O0,000, unchanged; passenger
transportation, $37,500,O0O. against
$75,000.000; automobiles, $4O,O00,O00.
against $6S.OOO,O0o payable under
the revised bill by pleasure car own
erS and not manufacturers); amuse-
ment admission, $23,0OO,0O0, against
$50, 100000, and first-class mail, $780,
100000, against $7O,0OO,OOO (by retain
ing the 1 cent increase for f1rst-class
mail and striking out the increase
upon postcards).
The committee struck out entirely
the House 10 per cent. general tariff
tax upon virtually all imports, esti-
mated to raise $2O0,0O0.OO0. 1t sub
stituted consumption taxes, totaling
s86, 100000, and bearing more directly
upon consumers, of y cent pound
on sugar, 2 cents on coffee, S cents
on tea ami cents on cocoa and sub
stitutes.
Stamp Tax Reimposed.
All Spanish war stamp taxes would
be virtually reimposed under the bill,
the committee adding a new tax Of
cent each on bank checks over IS.
From stamp taxes $50, Zoo, 900 revenue
was proposed under the House bill.
and $30,000,00O under the committee
revision.
House levies of FIVE per cent. upon
gross sales of many manufacturers
were stricken out entirely and taxes
on patent medicines, perfumery, cos
metics, Pullman accommodations and
soft drinks greatly reduced