The sun., 1917-05-02
WAR REVENUE
TO Be BOOSTED
House Committee Decides
to Add $5OO,OO0,O0O to
Tentative Bill.
STORMY SESSION HELD
SupertaXes on Big Incomes to
Be Increased Up to 33
Per Cent.
STORMY SESSION HELD

wAsIINGroN, May 1.-Decision to
boost the war revenue bill estimates by
$500. 900 and to increase the pro-
posed supertaxes on incomes greater
than $4,000 were the two immediate re-
suits of the first drive by the Ways and
Means Committee to-day against the
tentative bill put forward by its sub
committee.
The stormiest session the committee
has known for years was adjourned this
morning after the frankness OF several
of the non-membcrs of the subcommittee
had brought about n situation which
might have led to fisticuffs. A second
session was called in the afternoon. at
which it became apparent that the sub
committee stands united but lonely in
favor of it's tentative draft.
THE temper Of the committee Is such
that the bill ultimately may have to be
written in the Senate" declared a men,
Der of the committee tonight. THE
feelings Of members OF the committee
are such that in the consideration of the
bill proposals are not considered on their
their immediate appeal The bill should
be framed along scientific lines because
il Is the most important bill the commit
tee has ever considered. but such con-
sideration is impossible, 1t seems, so long
as the committee remains in its present
mood
What subcommittee Proposed.
| Proposals put forward by the sub
committee after nearly two weeks of
secret sessions and hearings contem-
plated raising approximately $1,000. .oO0.-
| 600, of which amount between 100000
| 900 and $4,000 100000 would have been
| raised by increases in the income and
| excess profits taxes.
Declaring that a revenue bill OF such
! proportions would not take care OF the
| war demands as outlined by the Presi-
dent, and would put Congress in the po-
stion Of stinting the Administration in
| the conduct OF war. members Of the full
, committee, led by Representatives Hill
! of Connecticut. Moore of Pennsylvania.
Hull of Tennessee and Sloan OF
| Nebraska. insisted that the COM
| mittee frame the bill on tho basis of
/ St,S0O. 100000 in prospective returns. The
Subcommittee fought this proposal tena-
/ ciously, but was beaten by l3 to on
| a vote IN which Sterling OF Illinois and
/ Martin OF LOUISIANA voted with the SUD-
/ COMMITTEES.
/ Representative Fordney. ranking Re-
/ publican member OF the committee. was
the principal storm centre. Mr.. Ford
ney's colleagues were resentful because
I ne had Joined with Chairman kitchln
ana the three members of the sub-com-
mittec in framing a bill in the face of
| the contention that the subcommittee
was authorized only to compile estimates
and make proposals as TO individual
items
EOrdney Stands Alone.
When IT came to the vote on the in.
come tax proposal, after the sub-com-
mittec had been beaten on the frs,
Vote. Fordncy stood alone agans, the
proposed changes. No attempt wa,
made to interfere with the minimum
exemptions as proposed by the sub
| committee, the normal tax increases fol-
I individuals or corporations. nor will
the surtaxes up to and Including the
class between $4,000 and $4,000. Her,
the full committee determined to add tt
the revenue raising possibilities of tn,
title by increasing surtaxeS up 10 ant
including 100000 Incomes, above whicy
a surtax of 33 per cent. Will obtain.
1t is estimated that to-day's change
in the Income tax schedule will increase
the returns from that source approx.
mately S10O,000.000. bringing the IN
creased returns from the new law from
individual and corporation income
taxes up 10 approximately 500, 900. .OOO
This change would leave approximate J
s4OO,O00,000 still to be rused by
changes IN the subcommittee draft Il
$500. 900, 900 Is to be raised through
the new bill.
The excess profits tax proposals OF
the subcommittee will probably be con
sidered tomorrow. The bill proposes q
fiat tax Of 16 per cent. on the basis oi
the present excess profits law. An a:
tempt will be made to change completed,
the system of taxing excess profits witr
view to taxing war profts In on,
class and profits which have not beer
affected by the war in another.
General Business Taxation,
Other businesses which have no
reaped benefits from war profits woult
be taxed on a fiat percentage basis com
puted on their annual earnings. Thos,
urging this plan. which is believed to b,
acceptable to the members from larg,
business constituencies. declare 1t no
only will yield greater returns but viii
distribute the tax on business NOR,
eauitably. 1t is based upon the British
excess profits tax.
Methods of increasing the revenue pro
ducing possibilities of the sub-commit
tee bill were not discussed to-day excep
) in a general way. Reference was mad
to Nat tax upon privately owned au
tomobies in addition to the per cent
tax on the manufacture OF motor We
) hcles approved by the subcommittee
The proposal OF the Secretary of tn
Treasury TO tax prouucts OF petroleum
also was touched on, but only In pass
ing. The committee probably will do
) tcrmine how muSh to expect from In
come and excess profits taxes befor
: considering rates on other schedules.
While no formal agreement was pro
! posed as to the elimination of import an,
consumption taxes no strong sentmen
In favor of these developed at to-day
: session. However these sources may b
considered later II other means do no
promise TO produce the necessary rev
| euuc. Despite the strong opposition O
II. both Kitchin and Fordney against con
l. sumption taxes. sugar. coffee and te
| may still be hit. Chairman Kitchin sal
: toe day that he expects to report the per
/ fcctcd bill by Saturday.
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To Honor AmbasSa dor Page.
= I.oNpoS, May 1.-rambridge Univer