Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-09-06
Every Amendment Offered by
La Toilette, Johnson and
Hollis Is Overwhelmingly
Beaten in Seattle,
29 VOTES HIGH WATER
MARK OF EXTREMISTS
Next Provision Will Determine
How Much Corporation,
Incomes Shall Pay,
10y sossino JOURNAL SPECIAL LEASED WIRE,

10y MORNING JOURNAL SPECIAL LEASED wIRsl
Washington, Sept. 5.--The senate's
bitter fight over war profits taxation
virtually ended late today with adop-
ton of the finance committees com
promise provisions for total levy of
S1,2S6, 900, 900, or about one-third of
this years war and normal excess
profits.
This is an increase of 81 ,060, 900, 900
over present taxes. The high tax ad-
vocates failed to secure adoption of a
single amendment
The vote on the adoption of the
finance committees draft was 70 to q
The seven members were Bankhead.
Borah, Gronna, Johnson of California,
La Toilette, Underwood and Varda-
man.
Radicals Arc Routed.
Action on the war profits section
the largest producing provis-
ion, was taken technically in commit
tee OF the whole and is subject to final
review later Today's decisive rout
OF the high tax eleyement, senate lead
ers say, forecasts defeat for the fight
beginning tomorrow for heavier in
come taxes.
With adoption of the finance COM
creased by the committee from S56t,.
100000 to $1,000 100000 after the
high tax senators began their fight
the bill totals $2,522, 100000, near
which figure it is expected to remain.
Many senator's however, predict ulti-
mate elimination of consumption
taxes, aggregating $50, 900; sec
ond class mail increases of $4,000
900; freight taxes of $77 100000, and
stamp taxes on parcel post packages
eStimated to yield about $S,000.000.
Twcnty-nine High Water Mark.
In the contest between those advo-
eating and opposing higher taxation
of war profits. largest muster of the
high tax group was twenty-nne votes.
This came today on an amendment
of Senator Johnson of California, to
increase the maximum graduated rate
from so to 20 per cent. Supporting
ii were
Democrats Ashurst, Beckman,
Broussard Chamberlain, Fletcher,
Hollis, Husting, Johnson of South Da-
kota, King, Kirby, McKellar, Myers,
Overman, Phelan, Shafroth, Shepard,
Thompson, Trammell and Vardaman
is
Republicans-Borah, Brady Gron-
ma, Johnson of California, Jones of
Washington. Kenyon, La Toilette Nc
Nary Norris and Sutherland-10.
Total, 20.
on the final vote of 70 to Z, after
all amendments had been defeated
except minor provisions accepted or
offered by Senator simmons, in charge
of the bill, many of the so-called rad
icals voted for the committee draft.
Total Levy Enormous.
As now written into the bill the
profits section strikes out the house
provision for an additional tax or
5000, 900, 900 and is a substitute for
the present excess profits law now
yielding $4,000 900. The total levy
of the new provision is estimated at
$1,2S6, 100000.
1t also extends the war tax to ordi-
nary, normal peace profits in excess
OF 10 per cent in addition to the eX-
cessive war profits, reached by grad
uated rates, amounting to sur-taxes,
ranging from 12 to so per cent. The
excess is based upon the net income
above 1000 of corporations, partner
ships and individuals in trade or bus
mess over the average of 1911, 1912
and 1913-the pre-war standard
with a minimum exemption of per
cent of actual invested capital and a
maximum exemption of 10 per cent.
Estimated Yields.
The graduated rates and their esti-
mated revenue yield follow:
Twelve per cent on excess profits
up to Is per cent, s100.0S0.000.
Sixteen per cent OF between l6 and
25 per cent, s46,0S0.O00.
Twenty per cent between 25 and 80
per cent. $109,000,000.
Twenty-Five per cent so and rs per
cent, s101. 100000.
Thirty per cent between rs and 100
per cent. SS.200.000.
Twenty-Five per cent between SO
and 150 per cent. 1So,050, 900.
Forty per cent between $50 and
200 per cent, $102, 100000.
Forty-five per cent between 200
and $50 per cent, sS4,150,000.
Fifty per cent between $50 and 900
per cent. $72,500.000.
Sixty per cent on profits in excess
of 900 per. cent. $46s,g90 600.
Insurance Exempt.
Senator simmons presented and the
senate accepted a provision exempt
ing -trades and business carried on
chiefly by personal services and with
nominal capital He also accepted an
amendment by Senator Shields ex
empting from consideration as tax