New-York tribune., 1917-06-02
Senate Plans
$42,000,000
Tax on Autos
Pleasure Vehicles to Pay from
$50 to SIS; Low Price
Movies Exempt
Method Of Paying
On Incomes Changed
No Increase for Cheap Cigars
Senate to Get Bill
This Week

SO, with reductions Tor cars uSeu
year or more, were agreed upon to-day
by the Senate Finance Committee IN
continuing revision of the House war
tax bill. This tax is expected to pro-
duce s42.00O,000
With its task virtually completed, ex-
cept for the newspaper and magazine
section, the committee tonight ad-
journed until Monday, so that Treasury
experts may spend tomorrow putting
the redrafting into legal form. The
bill probably will be ready for submis-
sion to the Senate early next week.
Tomorrow Senator Simmons, chair
man, and Senator Penrose, ranking Re-
publican member, will confer informal
" with representatives of publishers
and Postohice Department officials re-
garding the proposed taxation Of pub
lications in lieu of the increased sec
ond class mail rates il he House bill.
Poor Mans Tn, IRE Exempt
Under the committees amendment
all motion picture theatres charging
less than % cents admission would
escape the tax of one cent on each
dime paid imposed by the House meas
ure. Senator Penrose championed this
change, urging that the motion picture
house is the poor mans theatre. IL
was decided to retain the House plan
FOR taxing other places where admis-
sion is charged.
Treasury experts estimate that there
are 100000 owners of automobiles
subject to the $3.50 tax, 100000 sub
ject to the $40 levy, 1,2l9,000 in the
SIS class and 231, 200 subject to the $40
rate The license taxes, payable by
motor vehicle owners direct, take the
place of the House tax of per cent
upon manufacturers of such vehicles.
The committees section would pro-
vide:
That on and after July /. 1917. special
taxes shall be, and hereby are, imposed
annually on owners OF automobiles and
motorcycles the rate OF tax 10 be based
on each automobile or motorcycle, as
follows:
Motorcycles. $3.50
Automobiles. listed retail price at time
of purchase not $500, 500; over
$500 and not over $1,000. $40; over
81 900 and not over $1,000. SIS; over
$4,000 and not over $4,000, $50, $4,000
and over, SIS.
Business Autos Not Taxed
Provided that the special taxes herein
imposed shall not apply 70 manufactur-
ers and dealers 20 unsold automobiles
and motorcycles held for sale. or to own
q anton npHtl
exclusively for business provided FUR
ther. that evidence Of payment OF the
tax shall be by receipt or stamp 10 be
attached 10 automobile or motorcycle,
under such rules and regulations as may
be prescribed by the Commissioner OF
Internal Revenue that the special tax
paid within a fiscal year shall not be
imposed again within that fiscal year II
ownership changes.
A modification TO be drafted later
will provide a reduction of 10 per cent
in the license taxes for each years use
Of automobiles up 10 five years, or
maximum allowance OF so per cent.
An amendment to the income tax sec
tion written into the bill to-day would
repeal the provision of the Underwood
act of 1918 providing for collection OF
.i :
ouire those receiving the taxable in
comes TO make direct payment of taxes
to the Treasury. As a substitute for
the present requirement of collection
AZ the source, the committee adopted
new principle of information at the
source requiring corporations and
others under heavy penalties TO report
to the Treasury Department the names
of persons and amounts Of income sub
ject 20 taxation {!
To Prevent Much Evasion
This plan, the committee believes,
will prevent much evasion, increase IN +
come tax revenues considerably and
/ promote honesty of the laws operation
and enforcement. Reports will be re-
ouired on all incomes in excess of $500
annually.
| The committee will make no change
IN tho income normal tax, surtax and
exemptions of the House bill, except
the elimination, previously agreed
unon. of extra surtaxes, on incomes OF
more than $4,000.
On the theory of exempting from
taxation articles used by the poor, the
committee, in changing cigar taxes, de-
cided TO exempt from any tax increase
cigars made to sell for less than four
cents each. Increases in taxes on
cigars agreed upon were as follows:
Upon cigars made to sell from 4 T.
cents each, 81 thousand; those sell /
ing between and l2ia cents, SO a
thousand; between 1919 and 20 cents,
IS a thousand. and over 20 cents. 81
thousand. The House rates generally
were about the same, but based upon .
I different standards.
The committee also decided to-day
/ 20 repeal existing tariff provisions al |
/ lowing drawbacks" 10 sugar refners.
! Senator Broussard. OF Louisiana, urged
| the action. The change. il is said. will
J operate 10 benefit domestic sugar pro-
/ ducers. and incidentally reduce Federal
/ revenues about Sl6.000.000. The draw
I backs" are virtually repayments of Gus
+ toms duties TO refners after they re
| fine and export imported raw sugar
Save Daylight in Wisconsin
Superior. Wis. June THE daylight ;
saving" plsr was put in force in this
J city to-day At midnight all clocks {
were set ahead one hour.