Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-14
WANT WAR COST
PAID BY WEALTH
Minority Report on Revenue
Bill Would Exempt Work
ers' Earnings
OPPOSE BOND ISSUE PLAN
WASHlNGTON. Anr

WASHINGTON, Aug H.
Oonscription Of wealth to pay for the
war ana exemption of the earnings oS ,he
na''on workers are urged in rcnort to
tno senate today by three members of the
r'nance Committee who disagree with ,be
reNehue-raising methods proposed &, the
ps"','s SZ'Oo6'97o,ooO war tax bill A table
US corporation incomes showing their
'Noiien war profits was also submitted
rue report, signed by Senators La Fol-
e''e' 'ore and Thomas. OF Colorado. was
p'eSented by La Toilette when the Senate
resumed discussion Of the bill.
Inc minority asserts that the SIM, tho
committee bill proposes to raise is only
hait enough to meet Governmental needs
lor the present fiscal year.
In addition TO the s5.9i7.S7S.3I7 which.
quoting Secretary McAdoo. the minority
says is needed for Government exneuses
the report says that to take care of Ioars
TO the Allies and interest ON bond ISSUES
this country must raise more than sla 900
ooO,ooO this year
The committee bill. SAYS the mjnority
mas ignored McAdoo's estimate and wouId
leaNe the country without sound policy
for financing the war
While this bill and the ma ior!y report
are silent on bond issues" observes the
minority report 1T is perfectly obvious
bond issue to meet the billions of dollars
left unproNded for is in contemplation.
OF all forms of taxation that involved
in bond issues is the worst 'rhe people
must redeem the bonds, and in short
time the interest comes to equal or excel
the principal
Whatever the total amount necessary. il
should be understood that in the enactment
of this revenue measure Congress is fixing
1t for the war period.
I'VE claim to have proited by the military
experience of other warning countries. par
tcularly Great Britain, and have adopted
the policy of drafting men into the army
from the very start. Why, then. should we
not profit by their financial mistakes and
draft wealth. in the form of taxation into
the service Of the country from the very
start?
The British income tax yielded for the
last fiscal year 81 .OO0, 600 900. ON that basis
similar tax rates in this country will yield
about s.. 500, 100000.
From two sources, the war profits tax
and the income tax, there can be raised
without submitting the country to serious
financial strain, more than double the
amount raised by the committee bill"
The minority points out that Great Brit
! ain now is taxing war profits 80 per cent
| while the committee bill, in its graded sea le
| goes no higher than 80 per cent
| Amendments to the committee bill tC
! bring the war profits tax figure up to "a o
| 80 per cent will be submitted by LA Toilette
I He will also introduce amendments great
| increasing the income tax schedules and vii
seek to strike out of the committee bill take
! on tea. coffee. sugar, Pullman berths, in
| crease in the letter portage and other rate
/ which directly hit the consumer.
| The amendments. La Toilette said woul,
| force the Steel Corporation to give the Gov
| ernment much larger share of its 1871
| war profits of S207,945953 than the pending
| bill. Under the committee bill the wa
profits tax would be $76,726.472.
The Standard Oil Company, La Follett
| said would have to pay but S5,O65,560 Of il
| 1916 profits of SEQ i25,5l0 under the pend
| ing bill.
If the minority amendments are no
| adopted La Toilette will present a complet
| substitute for the committees bill