The sun., 1917-07-29

WAR TAXES TO
S1,943,OOO,OOO
Finance Committee >Unwill-
ing to Impose More Now
on U. s. Industry.
AWAIT ACUTE SITUATION
Tea, Coffee, Sugar and In
comes to Furnish More
Revenue Is Planned.
AWAIT ACUTE SITUATION

WASHINGTON, July 2s.-The Senate
Committee on Finance has set limit
on the amount OF war revenue taxation
it Is willing to impose upon the indus
tries and upon the people of the United
States In response to Secretary McAaoo's
demand for an increase in the levy, OF
course this decision only applies to the
immediate present. The committee Is
willing to increase the pending war
revenue bill 10 gross levy OF s1,si3.-
100000, but not beyond that point
Higher income taxes on individuals and
corporation taxes are planned.
The committee has practically evil
denced its intention to tell the Secre-
tary Of the Treasury that although will
ing to meet the needs OF the present
and as far as possible the needs of the
future IL will not until the demand
becomes more insistent cross the
1000, 900. 900 mark with tax imposi-
tions. The committee also means to
halt in SO far as its power lies efforts
on the part of the House of Representa-
tives TO follow with too great a sub
servience the Administration's demand.
The argument on which this deter
minatfon was reached Is that the Senate
should not overreach in revenue raising
projects the needs of the nation as set
forth in existing appropriations and au-
thoriZations for expenditures extending
into the list OF present day obligations
from the enactments OF previous years.
Nations Present Income shown.
The balance to meet existing expenses
and comply with the demands OF all
budget enactments now on the statute
books which the Treasury will have on
hand following the passage of the bill
as now planned by the Senate. will be
made up as follows:
Income of United States from
existing tax laws. 81, 333, 100, 900
First Liberty bond issue. ..... 100000. 900
Pending war revenue bill .... l.s4s. ooo. 900
Total ...................s5.37s.sOO, 500, 900
This virtually provides for all the ap-
preparations passed by Congress and for
those expected before the reassembling
OF Congress on the first Monday in De-
cember.
Members OF the committee said to-
night II Is possible the total Of the bill
before 1t gets to the Senate will be $2.-
o00.ooo,ooo. According to the present
plan about S23O,000. 900 of the increase
"'A ~ ODNeAhNN AhNOHlc
tax rates, 10000, 900 on individuals and
the rest from corporations. The commit
tee figured on an increase in the normal
rate on individuals from to per cent.
and on corporations TO per cent The
rest Of the increase may be obtained by
increasing the excess profits tax and by
consumption taxes on sugar, tea, coffee
and cocoa
Income Tax Levy SI,OG2,7OO,OOO.
Under the programme $1,000, zoo. 900
would be the total levy this year upon
incomes. The present law yields $780,
100000, the pending bill originally was
designed to increase this by $532, ,7O0,-
600. and the $23. 100000 additional IL is
low proposed to levy would raise 1t over
the billion mark.
The Senate committee will leave to
the House the task of raising the rest
of the $1,000. 900. 900 the Administration
believes it must have TO prosecute the
war this year. Majority Leader Kitchin
Of the House was in conference with
the Senate committee to-day and this
decision was reached as a result of his
contention that the House might resent
any Senatorial infringement on its con-
stitutional prerogative OF instituting rev.
III