New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-29
Total Likely to Foot Up
$4,000, 10000, Opinion
in Congress
Kitchin Sees Senators
As a Result Bill to Suit Both
Houses May Be Drafted
at an Early Date

Washington, July 2s.-The Senate
Finance Committee reached a tentative
agreement late to-day to revise the
present s1,67O,0OO,oO0 war tax bill so
as to raise at least s1,943,OOO,O 900, the
larger part of the increase to come
from higher income taxes.
Members of the committee said to-
night it is possible the total OF the
bill before it gets to the Senate VIII
be $4,000 900. 900. According to the
present plan, about s23o,ooO,OOo Of the
increase will be obtained through
higher income tax rates, %O,OO0'Voo
from individuals and the rest from
corporations. The committee hgureu
on an increase in the normal rate on
individuals Of from to per cent ana
on corporations to 6 per cent. Inc resi-
of the increase may be obtained oy IN
creasing the excess profits tax ana py
consumption taxes on sugar, tea, cohee
and cocoa. o.o ,oo ooo
Under the programme. sl,o62, loo,Ooo
would be the total levy this year . up0hi
incomes. The present law yields sooo'-
O0O, 600: the pending bill originally was
designed to Increase this by S532,!o
600 and the S23,000,000 additional IL Is
now proposed to levy would raise IL
over the billion mark.
The Senate Committee will conhne
its work for the present to the present
war tax bill and will leave to the HOUSE
the task of raising the rest OF the 81
600 900 900 the Administration believes
il must have to prosecute the war THIS
wear. Majority Leader Kitchin, OF the
House. was in conference with the
Senate Committee to-day and this de-
cision was reached as a result OF his
contention that the House might resent
any Senatorial infringement on lts
constitutional prerogative OF instltur-
ing revenue legislation. Whether the
House will prefer to authorize S5,OOO'-
600 900 in bonds or Treasury certlhcates
to supplement the $4,000, 100000 the
Senate is providing. will not be de-
termined until next week.
The income tax increases proposed,
Chairman Simmons announced to-
night, represents the consensus of the
committees opinion. They probably
will stand, as the committee was ready
to vote formally on the upward revision
late to-day, but deferred final action
until Monday"
The decision to-day to leave to the
House the task of providing S., 10000
900 additional, promised greatly to eX-
pedite Senate action on the pending
revenue bill. Senator Simmons said
the committee plans to complete It's
revision Tuesday and report the Dill TO
the Senate for beginning OF debate the
latter part IF next week.
Senator Simmons said tonight there
Is no immediate necessity for the SEN
ate to consider revenue questions be-
yond the bill. :.
There is no occasion for immedi-
, ately providing revenues to meet the
new estimates" Senator Simmons eX-
,, planned. There may be no necessity
of further revenue measures until the
December session. With the pending
bill there are ample funds to meet all
calls until December"
The committees agreement to in
crease income taxes by $3.50, 900, IN
increasing the pending tax bill from
81 go 100000 to at least Sl,943 100000,
was said to be based upon belief that
the bulk Of the increase should come
from incomes rather than war profits,
already heavily taxed in the bill.
The committee gave much time to
discussing reconsideration of the
amendment, already written into the
bill, levying a tax of Is per cent upon
uted surplus. This is known as the
amendment of Senator Jones, of Wash
ington, and has been vigorously OPP
posed by corporations. There was
much opposition to changing this Sec