Evening star., 1917-09-06
Two Amendments Ready.


a determined fight for further taxation
of incomes. Senators La Toilette and
Hollis had prepared amendments to
raise the individual levy to approx
mately s650.O00,000 and 1851, 100000. re-
spectively.
Defea: of all such proposals was seen
today by the leaders as n result Of the
Senates action on war profits taxation
Levying of heavy rates of taxation
on incomes was opposed by Senator Nc
Cumber, who declared he was afraid, IL
this were done. it would create dissatis-
faction among the people and curtail
their enthusiasm.
NO matter how patriotic a people is.
you can impose on them and dampen
their war spirit" he said. Il think we
are levying too heavy tax on the peo-
pie for the first year. I think we ought
to levy moderate tax on people with
moderate incomes and higher tax on
those with larger incomes"
If he were opposed to the war, he said,
and wanted to make it unpopular, he
would make the tax just as heavy as
possible and have it all paid this year.
Senator Smoot Of Utah today gave out
a statement that the bill would result
in raising 35.3 per cent of this year s
actual expenditures by taxation. OF $19.-
015, 100000 already appropriated and in
prospect. Senator Smoot stated that but
S11, ,775. 900. 900 would actually be drawn
from the Treasury.
Estimating the pending bill to raise
We're calculated to raise a total of
s4,15S. 100000 by taxes, leaving ST.
617. 100000 to be secured by bonds. The
Utah senator also pointed out that the
that of the following belligerents: Eng
land. 26 per cent; France, 14h per cent:
Germany, '14N per cent, and Canada.
per cent
In the final vote yesterday on the ex-
cess profits provision of the war tax
bill in the Senate the advocates of high
taxes on war profits were defeated and
the finance committees compromise
was adopted in committee of the whole.
subject to vote in open Senate later.
The largest vote the high tax senators
We're enabled to poll was %, or twenty
short of a majority, on a motion by
Senator johnson of California to in
crease the graduated scale from 60 to
20 per cent. Only seven senators in the
end voted against adoption of the COM
mittee's recommendation.
Provisions Of the Section.
As the section now stands. it pro-
vides for an estimated revenue of ST.
ESQ. 900 900 from excess profits The
committee on finance originally recon-
mended taking s562. 900 900 from excess
profits, but circumstances later induced
it to increase the take-over to $106O-
0OO. 900. which added to the s226.0 900
now raised by the excess profits law,
for which this will be substitute.
makes the total of s1.2S6.0 100000 from
excess profits of all kinds.
The graduated rates and their esti-
mated revenue yield follows: Twelve
per cent on excess profits up to Is per
cent. s1OO,0SO, 900: 16 per cent between
16 and % per cent. SAC oSO,000: 20 per
cent between 25 and so per cent, s1O9.-
600. 900: 25 per cent between so and rs
per cent. s101. 100000: 80 per cent be-
tween 10 and 100 per cent. SIS, zoo, 900;
81 per cent between 100 and $50 per
cent, S12O,05O 900; 40 per cent between
$50 and 200 per cent. 1000. 900: As
per cent between 200 and % per cent.
SS4, $50. 900: so per cent between $50 and
900 per cent. $4,000, 900; 50 per cent on
profits in excess of 800 per cent, S462,-
100000.
Affects Peace Profits.
The bill extends the tax to ordinary,
normal peace profits in excess of 10 per
cent in addition to excessive war prof
its. reached by graduated rates.
amounting to SurtaNes, ranging from II
to 60 per cent. The excess is based upon
the net income above $4,000 OF corpo-
rations. partnerships and individuals in
trade or business over the average OF
1871 1912 and 1913-the pre-war stand
aId-with minimum exemption of s