Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-08-23
INCREASE ON TAXES
Continued from Page one)
La Toilette Defeat Predicted

runner of further material increases was
admitted tonight by leaders opposing
drastic advances. They predicted defeat
of Senator La Follette's amendments to-
morrow, but admitted that they would
get a large vote. The sentiment for tax
increases is expected to result in bitter
contest over the war profits section, to
be taken up next.
Lodge Speaks for Bill
Preliminary TO the initial voting on the
income tax section today Senator Lodge.
Republican member of the finance COM
mittes made a two-hour speech in oppo-
sition to increasing the bills levies. Sem
ator Townsend, another Republican COM
crease to $1,000, o0o, 600 to- be secured by
much higher rates on war profits, incomes
and also from liquor tobacco and a few
other articles, including automobiles. The
Michigan senator urged taking 80 per
cent of war profits
Senator Lodge insisted that the bill
provides an ample proportion over 80 per
cent.-of this years war expenses by tax
alton and should not be increased so as to
injure business.
Senator Lewis charged that the
treasury has evidence of income tax
frauds by wealthy persons defrauding
the government of 100000 600.
Individual Surtax Rates
The individual income surtax rates
tentatively approved today range from
one per cent on incomes from $4,000 to
600 Senator La Follette's first amend
ment now under consideration pro-
poses the same minimum and maxi
mum rates but also for many more
taxable sub divisions-for about one
per cent additional on each $1,000 over
$4,000.
The Lenroot amendments, retained
by the Senate on test votes of 80 to
80 and 81 to SO make a fiat increase of
% per cent on the surfaces on incomes
over $50, coo After the two test votes
Senator Simmons. chairman of the
finance committee. ceased further OPP
position and said the Senate had
amply manifested it's determination to
retain the Lenroot rates. Senator
Smoot opened the attack late today on
the La Toilette amendments. During
the debate, Senator Morris asked the
Utah senator if it would not be to the
detriment of the country to issue any
more bonds such as the1Liberty bonds.
because they are exempt from taxa
ton. Senator Smoot replied that he
did not believe that there would be
another bond issue during the war ex-
empt from taxation and that those al
ready issued would be called in and re-
deemed.
The Gerry Amendment
Under the Gerry amendment the to-
tai tax levy on all millionalres' in
comes. including the present law, would
be 81 per cent. With the Gerry amend
ment the bill would aggregate 5000
100000 with several amendments by
Senator LaF'ollette pending for furlh-
CT increases in the income tax rates.
The Gerry amendment was adopted
without a dissenting vote. On a test
vote for elimination OF the so-called
Lenroot amendments made in the
House. providing % per cent increase
in surtax rates on incomes exceeding
$4,000 and raising about SG6,0o0,o 600 in
revenue. the Senate voted 35 to 80,
against their elimination by the finance
committee.
Lodge Replies to LaF gillette
Senator Lodge opened today's de-
bate, replying to Senator LaFollette's
argument of yesterday that the bill
proposes 10 raise too little of the wars
expense by taxation and too much by
bonds Senator Lodge insisted that it
strikes a fair balance Its tax levy,
he said. IS sufficient. and that without
disturbing; business.
"All taxes would paralyze the coun-
try. he said. land be absolutely ruin
Gus, breaking down industry
More than 80 per cent of this years
war expenses would be raised by
taxation. he said.
Senator Lodge pointed out that about
80 per cent of Civil War expenses were
paid by taxation and that Great Bri-
tain has raised only 243 per cent of
her total war expenditures to date BY
taxes.
Peace on the status before the war
was opposed by senator Lodge. who
declared that the United States Is
fighting for it's own safety and indie
pendence.
we can have no peace without COM
piete victory" he added. Il don't be-
lieve German victory is possible. for
it would make this world place not
worthy of living in
Must Allow Profit
If this war continues, he estimated
Il would be necessary to take so per
cent. Of the war profits. He declared
the country must allow profits to con-
tirue to be made in order that the
country can obtain additional reve-
nues, pointing out there was now no
nation from which the United States
can borrow a dollar. He denounced
the House excess profits scheme, de-
claring it would exempt virtually ev-
cry railroad in the country.
Senator Lodge defended the con-
sumption taxes, declaring the principal
objection came from politicians, pub
lie men and statesmen. OF the great
amount of letters received by him re-
garding the measure, not one protest
from a consumer had reached him, he
said. All classes of citizens should do
their share in furnishing revenues to
conduct this war. He approved the
taxes on anusements. automobiles and
patent medicines.