The sun., 1917-07-01
EXCESS PROFITS
TAXIS BOOSTED
TO 73O MILLIONS
Senate Committee Con-
scripts Wealth to Pay Bulk
of War Expenses.
NO NEW BOND ISSUES
$3.50, 100000 Less From In
comes, Decrease Being on
Those Above $4,000.
SURPLUS FUNDS ARE HIT
Sugar, Coffee, Tea and Cocoa
Also Levied Upon in
Measure.
NO NEW BOND ISSUES
SURPLUS FUNDS ARE HIT

WAsHINoroN, June 3O.--In accord
ance with President Wilson's plan 10
conscript wealth to pay for the war
the Senate Finance Committee to-day
wrote into the revenue bill an amend
ment making drastic levies on excess
profits. The amendment is expected to
yield approximately $3.50 10000 annu-
ally.
The revision of the $500. 600. 900 bill
as passed by the House was completed
| to-day The measure virtually was re-
written and reduced to S1,652.17OOOO
with no authorization of additional
bonds. The final draft was sent to the
printer tonight and will be given formal
committee approval Monday and re-
ported to the Senate by Chairman Sim
mons early next week.
Incomes and excess profits will bear
about two-thirds of the new tax burdens
| under the revised bill-more than a half
| billion dollars each-with q large share
OF the remainder secured frcn liquors
and tobacco. Many House taxes were
entirely eliminated by the committee
and others added.
Graduated Tax Outlined.
The committee amendment adopted
would tax excess profits on a graduated
| scale. beginning at ~ per cent. and
running as high as 40 per cent. The
amendment will not only knock out the
| House excess tax provisions but will re-
peal the existing excess profits tax The
tax will be graduated as follows:
Not In excess of Is per cent. OF nor
NAL profits, IL per cent.
| In excess of l5 per cent but not
above 25 per cent, 16 per cent
| In excess of 20 per cent. but not
above 80 per cent, 20 per cent.
In excess OF so per cent but not
above 10 per cent, 2S per cent.
In excess of as per cent but not
above 100 per cent, 80 per cent
In excess of 100 per cent. but not
above $50 per cent, 35 per cent
Above $50 per cent, 40 per cent.
Radical increase OF taxes on war ex-
cess profits Of corporations, partnerships
| and individuals enabled the committee
to dispense with the suggestion made OF
additional bond issue OF from $500, ,0O0,-
900 to S1.000.00O. Senator Stone
withdrew an amendment for a $4,000 .0OO,-
900 issue. While the bill falls short by
about $500, 900, 900 Of meeting the Treas
| ury estimates Of war expenses next year.
| the committee decided tnat by issuing
| $l35,O00,000 OF authorized but unsold
Panama Canal bonds the expenses can
be met until Congress reconvenes in De-
eember.
Publishers Tax Section.
As finally drafted. the much debated
publishers tax section proposes a per
cent. tax upon publishers profits over
$4,000, yielding $500. 900 revenue, and
I increase "a ntla nk
pound in second class postage rates,
yielding 100000.
From income taxes 1892. 700, 900 would
be raised. $66. 100000 less than the House
provided--the decrease being made en-
tirely upon incomes OF $4,000 annually
and Rbove--with the committee approv-
Ing the House plan of lowering income
tax exemptions to 81 900 for single per-
sons. $4,000 for married persons add-
tional normal taxes Of per cent upon
incomes up to $1,000 and surtaxes grad
uated from to 3S per cent upon larger
incomes.
The committee also changed the plan
or collecting income taxes from that of
collection at the source" to "informa-
tion at the source" to accomplish direct
payment.
comparison OF the estimated revenue
to be gained from other sources under
the revised bin and the House bill re-
spectively follows
Liquors. S155,OOO,OOO. against $751;
00O. 900.
Tobacco. E5s,sOO.OOO, against SOS. 200.
900.
, Freight transportation. s775OO,OOO.
, unchanged.
Passenger transportation, s37,5OO, 900,
against s75,o00,000,
, Automobiles. O,OOO, 900, against s6s,-
, 000, 900 payable under tho revised bill
| k.r, ,NIa uY,A
. facturers)
! Amusement admissions $4,000 900,
against 500. 100000.
. First class mail, $4,000 900, against
SIC. 100000 (by retaining the one cent
increase for first class mail and striking
out the increase upon post cards)
General TRrin Tax Oui.
( The committee struck out entirely the
+ House 10 per cent, general tariff tax
, upon virtually all imports, estimated TO
raise 5000, 0O0, 900. 1t substituted con-
sumption taxes, totalling $50, 900, 900 and
bearing more directly upon consumers, of
= half a cent pound on sugar, two cents
on coffee. Ave cents on tea and three
y cents en- cocoa and substitutes
All Spanish war stamp taxes would
be virtually rclmposed under the bill
2 the committee adding n new tax of l
cent each on bank checks over IS.
From stamp taxes $4,000, 900 revenue
wus proposed under the House bill and
$40, 100000 under tho committee re-
\ vision.
i Other changes In the revised bill IN
A clude prohibitivo tax to stop the manu-
s facture OF distilled beverages, while
- taxes on other intOxicants are virtually
t. doubled elimination OF House taxes OF
@ S6.000,000 on nheritanceS and Sl0S,-
= o00,00 retroactive taxes upon 1916 in
z comes repeal Of the special ~ per cent.
II tsN on war munitions repeal Of the
d drawback reeNport allowance given
d sugar retiners extension TO parcel nos
packages OF a tax OF cent for each -