Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-08-31
SO PER CENT TAX ON WAR
PROFITS GIVEN APPROVAL
Increase From 26 Per Cent Is
to Offset Radical
Movement

WASHINGTON. Aug. 29.-Amend-
ments to the war tax bill proposing to
levy more than one-third of it's total.
or about s1,2S6, 600, 900, on war profits,
an increase of about $500, 900 900. were
approved b ythe senate finance commit
tee to offset the radical movement for
higher taxation.
To meet the radical movement for
greater taxation of war profits, the sem
ate finance committee today agreed to
amendments carrying war profits
taxes Of more than SO per cent inplace
of the present provisions for 26 per
cent The amendments would increase
the war profits tax yield from $685., 900,
100000 to ,O6O,OO0,OO0 in addition to
the taxes under the present law and
yield a third of the bills total taxes.
The pre-war profits rate of the bill
was retained by the committee but it
added a new maximum war profits tax
rate of 90 per cent on profits in excess
of 500 per cent. The maximum in the
bill was so per cent on profits over $50
per cent.
Another substantial change was made
in provisions for exemptions a mln-
imum of 6 per cent and maximum of 10
per cent of income on capital actually
invested was approved. These pro-
visions would care for corporations suf-
fering abnormal depression during the
pre-war periods. Corporations making
less than per cent during that period
would be entitled to at least that eX-
emption and If more than 10 per cent
they would receive not over 10 per cent
deduction.
BY these changes, the committee esti-
mated that the proposed levy would
take S1,2S6. 900, 900 of the 100000 600
or $4,000, 100000 war profits estimated
to be earned this year.
Senators La Toilette and Gore, prom
inent in the faction urging more radical
war profits taxation, did not attend to-
days committee meeting. Chairman
Simmons and others of the majority
hope the new levy-almost doubled-wlll
command sufficient support to cause the
rejection of the more drastic proposals.
Debate on the publishers taxes was
begun by Senator Shields of Tennessee,
who supported Senator McKellar's sub
stitute and argued that magazines and
other periodicals. not newspapers, cause
the deficit in carrying second-class
mail
81 am satisfied" he said, that the
daily papers are paying practically all,
# not the full amount. for the service
they receive. Rates on magazines and
other publications which cause the
losses should be increased"
Senator Shields said newspapers do
not require the same service of the post
Office department that magazines do,
and that they render much of 1t at their
own expense.
THE newspapers really are the peo-
pies papers," the Tennessee senator
continued. They are the papers which
supply information to 80 per cent Of the
people of the United States, and any in
crease in the burden of transportation
is an increased burden on the people"
Magazines, according to statistics, are
not read by more than II per cent of the
people, he added, and those people are
more able to pay an increased cost than
those who read newspapers.
Senator Smith, of Michigan, took eX-
ception to the statement regarding the
percentage of magazine readers, declar-
ing he believed ii was much higher.
Senator Shields characterized as Gin
defensble" and discriminatory" the
proposed 3 per cent tax on publishers.
He urged the adoption of the Mcclellan
amendment and opposed all others.