New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-06

vested capital. with an per cent ex-
empton, also was rejected, 81 TO 2.
Action on the war profits sections --
the largest revenue producing proVl-
sion was taken technically m COM
mittce Of the whole, and is subject to
final review later. To-day's decisive
rout Of the high tax element, however,
may prevent further efforts along this
line, and Senate leaders say II fore
casts defeat for the fight beginning to-
morrow for heavier income taxes.
With adoption OF the Finance Com
mittee's war profits provisions in
creased by the committee from $780,
0OO,O00 10 81 $50, 100000 after the high.
tax Senators began their fght-the bill
totals s2.622 100000. near which figure
il Is expected TO remain. Many Sena-
tors, however, predict ultimate eliml-
nation Of consumption taxes, aggregat-
ing s86.O00,000, second class mail in
creases Of sl2 100000, freight taxes Of
S17.500,000 and stamp taxes on parcel
post packages, estimated TO yield about
sS,000,0O0.
In the contest between those aGvo-
eating and opposing higher taxations
of war profits, which has approached
nigh levels Of Senate dissension, the
largest muster Of the high-tax group
was % votes. This came to-day on an
amendment Of Senator Johnson, OF CAL
ifornia. 20 increase the maximum
graduated rate from 90 to 10 per cent.
Supporting it were:
mocrats-Ashurst Beckham, Brous.
sard, Chamberlain, Fletcher, Hollis
Husting. Johnson South Dakota ,
man. Phclan, Shafroth. sheppard,
Thompson, Trammcl and Nsrdaman-
10.
Republicans -Borah. Brady. Gronna,
Johnson california;. Jones washing
tom, Kenyon. La Toilette, McNary,
Norris and Sutherland 10. Total, %.
Many Radicals Accept Draft
On the final vote of 70 to :. 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 radicals voted
for the committee draft. The vote came
after a day of perfunctory debate, III
marked contrast 10 the stirring strug
giles which preceded it, and after a
dozen rollcalls on various proposal J
designed 70 increase the war profits
levy.
As now written into the bill. the war
profits section strikes out the House
provision for an additional tax OF 5000,
100000 and is a substitute fer the
present excess profits law, now yielding
1926. 600 The total levy OF the new
provision is estimated at. 81 ,2S6, 100000.
Il also extends the tax to ordinary.
normal peace profits in excess Of 10
per cent in addition TO excessive war
profits, reached by graduated rates,
amounting 10 surtsXes, ranging from
II TO so per cent The excess is based
upon the net income above $4,000 Of
corporations. partnerships and indiTid-
uals in trade o. business over the aver
age OF 1911. 1912 and i9l2-the pre-war
STANDARD with a minimum exemption
OF per cent Of actual invested capital
and q maximum exemption OF 10 per
cent
The graduated rates and their esti-
mated revenue yield follow:
70 per cent on excess profits up to Is per
cent. 500 0so 900.
Is per cent on between Is and % per cent,
$40, Csc, 900; 20 per cent, between 20 and 80
per cent. sos, 600.
% per cent. between 50 and IS per cent.
SOL .00o.00o 80 per cent, between 10 and
100 per cent, SIS. 200.0 900.
35 per cent, between 100 and $50 per cent.
200 per cent. 100000 900,
s. per cent. between 700 and ESQ per cent.
ss4.l50 600: 80 per cont. between 25O and
300 per cent, si2,5O0.hhO
co PEI cent on profits in excess OF GOO
per cent. 1862 600.