Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-08-11
DENIES KITCHENS CHARGES THAT BILL HAS
BEEN REWRITTEN TO FAVOR MORE PROSPEROUS
Says that As Great Cor
porations Alone Will
Pay Over Three Times
Tax Proposed by the
House Bill It h nose
that Have Profted by
War Must Pay

Washington. Aug. 1o-chairman
Simmons, explaining to the Senate to-
day the finance committees purposes
in re-drafting the war tax bill, de-
clared their changes made will great
ly increase the tax burden to be borne
by the big corporations who have prof
tied from the war.
In a detailed statement opening de-
bate on the measure, Senator Simmons
said the committee had weighed e"-
cry schedule carefully during its many
weeks Of consideration and that the
bill as now presented would place the
tax where it belonged. without work.
ing injustice to anyone. He will con-
tinue tomorrow.
Revision Taxes Prosperous
He replied at length to Chairman
hltchin of the House ways and means
committee who recently charged that
the Senate committee had rewritten
the House bill in such a way as to IA
'vor prosperous corporations and in
dividends. On the contrary, the sena-
tor insisted the Senate revision would
tax the prosperous much more heay-
lily than had the House bill.
Certain corporations in this coun-
try are going to be made to disgorge,
in order to pay the expenses of this
war. a very considerable proportion
Of their income" said Senator Sim
mons. Tile 1916 war profits exceed
three billion dollars. The House bill
proposed a ridiculously small sum
from the swollen war profits. 1t was
entirely too lenient to the men who
have reaped this harvest of gold-gold
they exacted out Of the earnings or
those who must bear the burdens of
this struggle"
Senator Simmons said that those
Who criticizes the Senate committee
because it substituted a graduated tax
on corporal IONS WAL DIDitS LOT II HIT
rate cf per cent as levied by the
House did not understand the situa-
ton. HI declared that out Of IA coun-
tries having such tax, only two, Can
ada and Spain. impose n war profits
tax or a basis other than the plan out
lined by the committee.
Sugar, Tea and Coffee
Refunding the committees consump-
ton tax on sugar, tea and coffee, he
said tho original house bill leved
just about as much tax in other forms
on these articles. He denied charges
that the Senate bill favored the rail-
roads.
The bill. said Senator Simmons, pro-
poses to raise a larger proportion OF
war revenues by direct taxation and
less by bonds, distributing the war
burden between the present and flu
t,lre generations. He pointed out that
nearly $l,40o,000,oOo of the new war
taxes are to be obtained from incomes
and war profits alone, with over $780,
600 600 more from intoxicants.
Before the war" continued Sena-
tor Simmons. Our total expenditures
were between 500, 100000 and $500 0o0,-
600 exclusive Of postal costs. 1t is evil
dent that the expenditures during this
fiscal year will reach something like
$4,000 900 900, These conditions sug-
gest incomes and war profits as the
chief and just source Of revenue to
defraye the expenses Of the war. APP
parentlv the House did not take this
view AS the war profits for 1916 ex-
CONTINUED on Pane 5-col. y