El Paso herald. (El Paso, Tex.) 1901-1931, 1917-08-06
WAR TAX BILL
BEFORE SENATE
Consideration Begins Soon
as Food Legislation is
out Of the WaV.

Washington. u- O.. Aus 6.-The re-
vised war tax bill with its accom-
panylug bipartisan committee report
was presented 90 the senate today By
senator Simmons. chairman OF the
finance committee Its consideration
will begin as soon as the pending
food legislation is out OF the way
Senator leaders hope to have the
wa tax bill finally enacted early IN
September
The bill. ass finally completed by
the committee. is designed % Fd-7t
$4,000. 100000 OF revenue inns l7
about sIsl.JHl. nIU more than the 1ll-
as il passed the house carried ana
1891. 100000 more than the senate
committee planned before the ne"
war estimates We're submitted
where increases Come
Income. war profits. liquor and to-
baceo tax increases. the majority re-
port pointed out form the nucleus OF
LIe revised bill
Il O. general statement for the COM
mLrree senator Simmons SAID
eft has at al stages acted with z
keen sense OF tine extreme importance
OF its action ll IlS effect upon tAe
country and the successful prosecl-
rilu OF the war Nor was 10 ulnlnu-
fII that those who viii nave 10 pay
these eEactiols viii also nave 70 lur-
u-sh the larger part OF the money 10
purchase the bonds for expenditures
not provided for by taxation and also
as We MAY be called upon 20 loan 20
foreign governments enEa5ed win US
in war against Germany
Tries Not to Hurt business
'As the result or these changes II
is estimated that about two thirds OF
the additional revenue expected VIII
HHHa md UTUA4LE
taxes. In fixing the rates upon IN
comes and excess profits your com
mItree kept constantly in mind the
fact that the amount Of revenue de-
rived from these sources would de-
pend upon the prosperity and activity
of business and that 10 impose taxes
lICl would tend 20 discourage en-
tcrprlseS and dampen these activities
would tend to defeat the legislative
purpose Moreover, ir thought that
IL the rates upon incomes and excess
profits were fixed at the highest level
there might be but little margin LEFT
Tor further increases in rates
IEudvisable TO Increase SurtaTes-
The report defends the elimination
OF the SO called Leuroo- surtaNes on
incomes OF over 100000 added in the
house. designed to raise S66.00o.1g1 as
Elm view OF the fact that in addition
90 tl- large increase in the normal
tax and surtaE-s upon incomes the
OH provides for large increase in
the war profits tax Of corporations
and partnerships and ancludes indi-
EiCuals Iu the scope Of that tax. and
in view Of the probability that IL viii
De necessary hereafter To- further in
crease these rates in order 10 provide
Tor increased war expenditure. your
committee believes that FOR the pres
emit DO is inadvisahle TO increase the
surtlN rates beyond those proposed in
The original house bill"
Would BE Double Taxation.
Regarding The elimination Of the
house retroactive income taxes on
1916 incomes. which would have pro-
duced SlIS-NHe 600. the report stated
This tax seemed in principle both
morally and economically uusOuud
Incomes of the last year have paid
their taxes and rEe balance has either
been spent or saved and added 20 cap
lt-l- o. which form Do VIII yield re-
turns lu the ensuing years To tax
This rlL-paId income again is not only
double taxation OF q peculiarly OBJ
u1Nl1us kind but would posi- bly, com
pei q tax payer TO impair his capital
and thus diminish government
sources OF taxation To would be one
or those disturbing taxes which would
alarm business and check Industrial
pro4lctlFlt-- ll Is very poor economy
and would hold ont threat Of uucer- .
taiuty.'
Parcels Post Packages.
The new tax Of one cent for each
-5 cents paid ON parcels post pack
ages was said in the report TO remove
discrimination ia favor of the rail-
roads and the parcels post
I'm addition 90 this" he report said. .
your committee can see no intrinsic /
reason why In This present euer-
gencE. the government should not i'm
pose tax upon this method of trans
pOrtatiOn. especially in view Of the
fact that the rates on first and second .
class mail are increased
The house five percent taxes upon
electricity, gas and local telephone
appeared 70 Ile committee that this
tax would fan with very great sever
lty upon the people of moderate ]
means as well as the poorest classes I
who az the present time depend very .
largely lu the cities upon gas or cleo .
triciry To- furnish them with both
light and heat for cooking as wei as .
in many cases. with power for run
nine small machinery, like that Of the
sewing machine"
Striking ont OF all insurance taxes /
from the house bill was based upon /.
the belief that excise taxes upon in .
surauce is Questionable principle F.
and should be- subjected 10 tax only F.
as last resort
Taxes ON Amusemeuts.
Declaring that the new tax on cab
arets and retention OF taxes ON other /
amusement admissions is Unsuitable. +
the report said The tax on moving pic
ture thtare-s CHARGING less than - I
cents had been eliminated.
House taxes on club dues were .
eliminated, the report said. because ft ]
was difficult To- reach clubs uroDarIv .
taxable and AT the same time exempt .
those which should not be taxed.
Al0st house stamp taxes. virtually .
those OF Spanish war days. the report I.
said. have been retained The new one
cent stamp tax on bank checks over
So 10 was said was provided because /
prevalent in most beIIfgerent conn
tries and because there is no good
reason why this source which would
yield substantial revenue. should be
overlooked"
Beverages Are Taxed.
me committee lr was stated. sub
tariff levy moderate. rarrpo-9ry sv-