The sun., 1917-08-25
SENATE INCREASES
CORPORATION TAX
Two Per Cent. Rate on Net In
come Under Existing Law
Raised to six.
54O.OOO.OOO Is EXPECTED
Senator Simmons Plans to
Take Up the Postage Sec
tiOns To-day.
.Spkcidi DcspnI.,h 10 TnR SrN

SpScfof DespdiSh 70 THk Sun,
WAsHiNoToN. Aug. 2i.---There was a
respite in the Senate to-day from the
struggle between the advocates of the
greater CONSUMPTION Of the nations
wealth" and the supporters Of the war
revenue bill as drafted by the Senate
Committee on Finance.
Yesterdays defeat for Senator La
Foilette's amendments to the income tax
schedules was the first trial Of strength
between the radical and the conservative
members Of the Senate. and the crushing
defeat for Fighting Bob" while bring
ing vast amount Of solace to the sup
porters Of Senators Lodge, Simmons and
Penrose, who framed the war revenue
bill. II not yet accepted as the complete
dehnition Of the alignment.
1t IL recognized that several Of the
Senators who voted with the committee
are In sympathy to some extent with the
principles OF taxation which Senator La
Toilette has enunciated. Their opposi-
tion to his amendment was in consid-
cradle measure personal opposition. n
reflection OF the sentiment of reproach
which they desired to express against
what they consider the anti-American
legislative tactics Of the Wisconsin Sem
ator.
Measure Of Opposition.
II Is said by Senate leaders Of the
radical wing and admitted by leaders Of
the other faction that the full measure
OF Senatorial opposition to advancing
the taxes on wealth was counted in the
vote OF yesterday. They incline to the
belief that when the war profits section
Of the bill comes before the Senate they
will amend 1t moderately upward in the
matter Of surtaxes on corporation profits
Of abnormal dimensions.
To-day the Senate gave evidence OF
this disposition on the only definite ac-
ton taken. The fiat rate Of per cent,
OF the net income of corporations as un-
der existing law. which the House Of
Representatives raised TO per cent.
was boosted again in the Senate and the
rate-Yas written into the bill at 6 per
cent.
Under existing law the income tax on
corporations pays into the Treasury an
nually $50. 100000. The advance by
the Senate to-day will increase the es-
timated revenues from this source to
$40 900, 900.
Postage Tax Sections.
Tomorrow Senator Simmons, in
charge OF the revenue bill, plans to take
up the postage tax sections. including
the one cent increase proposed on letters
and the much disputed sections affecting
publishers.
Senator La Toilette is working on
his remaining amendments to increase
individual income taxes. They propose
to raise about $4,000 900 and $685.
100000 respectively instead Of 100000
900 provided under the pending bill.
Senator Weeks plans to speak to-mor-
row in support of his amendment to
strike out provisions levying a special
tax on publishers incomes and the pro-
posed increase Of one-Quarter cent q
pound on second class mail. Senator
Hardwick 10 prepared to advocate his
amendment to place a special graduated
tax on advertising sections Of publica-
see to press his zone postage rate sys-
, tenn substitute
With revenue bonds soldiers insur-
ance and deficiency bills before It, the
House will resume regular sessions next
Wednesday. Representative Garner OF
Texas announced in the House to-day
that the Ways and Means Committee
hoped to have the revenue bill back
from the Sc nate and ready to send to
conference by that time. and Chairman
Adamson Of the Interstate and Foreign
! Commerce Committee. now sitting on the
; insurance bill, expects to report that
measure out Tuesday or Wednesday
| Meantime the Appropriations Committee
will put the finishing touches to the
second deficiency bill, which will run
| into billions.
The Ways and Means Committee will
get busy on the second bond bill. which
may be reported out before the Confer
ence Committee begins work on the
revenUe hill