Arizona republican., 1917-05-29

 b|G3 WAR
 TAX BILL
Republican A. P Leased Wirel

 WASHINGTON. May 2S.-Making rapid progress in revising the house War tax bill. the senate finance commit tee today decioed to exempt from taxa tion many articles levied upon by the house to substitute stamp taxes for the manufacturers gross sales plan of the house and to consider new taxes upon second class mail matter. The latter were advocated by Senator Hardwick and postoffice department heads ana would be based upon the advertising space in publications.
 It was agreed that there had been no direct taxation on jewelry, motion picture films, chewing gum and pianos and self Dalyed musical instruments.
 For the house gross manufacture sales tax of five per cent the committee determined to substitute stamp taxes on the following:
 Mechanical musical instruments, in- cluding talking machine records, ath- letic goods, perfumes, cosmetics and patent medicines.
 For the house five per cent taxes on yachts and other pleasure boats a new tax based upon tonnage or length was considered. A new tax upon confection- cry was proposed by Senator Williams of Mississippi and favorably received.
 
 and other places and club dues were considered, but no decision was report ed. They probably will be retained in amended form.
 Although the committee previously decided to strike out the house increas- es on second class mail matter under zone system, it re-opened the question of increased revenue from newspapers and magazines today by receiving the new proposal of Senator Hardwick backed by the postoffice department Senator Hardwicks amendment pro- vides that the cent pound second class rate shall be retained on news matter of second class publications, but pro- poses a graduated tax upon the parts | of such publications devoted to adver- tising. He told the committee that by | this method $20,000, ,0000 of additional 1 revenue this year could be raised For l the first year he proposed tax of three l per cent upon advertising in second class publications. of six a pound be- l ginning July l, 1918, and of eight cents l a pound thereafter
 l The tax would be computed upon q | space and weight basis the advertising l space being measured and the tax ] levied upon the percentage of the pub l lication's weight devoted to advertise | iAlFAtS- IL lN tApctttu ttldt tUe rev itf''- 1 oosal will be as vigorously opposed by l publishers as the house zone system | which the senate committee eliminated after hearing testimony that it would
 ruin many publications.
 | If adopted it would be in addition tC the direct advertising tax of two pei
 cent tentatively approved by the con- mittee.
 The committee decision to strike out | the house gross sales tax on jewelry motion picture films, and chewing gum was said to be based on the general principle of eliminating special taxes l on businesses and industries. The mo- l tion picture business, it was argued | will be reached by the excess profits corporation and amusement taxes.
 The new stamp taxes proposed or | perfumes, cosmetics and patent medi- | cines it was said probably would be distributed in actual operation between | manufacturers. distributors and th'
 consumer A floor or stock space plan of levying the stamp tax on aislrp-
 utors is being worked out by treasury l experts.
 | The general tariff increase of 10 pei cent of the house bill will be considered I by the committee tomorrow. Many members are insisting on it's elimina
 ton. If not stricken out, senators sait i tonight it would be greatly changed
 especially the proposed free list. As i