Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1917-06-06
ONE PER CENT. TAX
ON AUTO OWNERS
La Toilette Offers Amend
ment for Flat Rate on
Owners OF Machines
REVENUE ON BEER
REMAINS UNCHANGED

WASHINGTON June GA new
scheme Of automobile taxation. sug-
gestcd by Senator la Toilette as an
amendment to the war revenue bill
was considered yesterday by the SEN
a.e Finance Committee. as a substi-
tute for the graduated tax tentatively
agreed upon last week Senator la
Toilette proposed q flat ] per cent
tax on owners upon the retail pur-
chase price OF all automobiles. with
provision for 10 per cent reduction
each year for a period OF five years
to allow for usage
Under the graduated tax, which
seemed to have been settled by the
committee until Senator la Toilette
offered his amendment. @notorcars
costing less than $500 retail would
have been taxed $3.50. the tax increas-
ing up to S25 for cars with purchase
price OF $4,000 A machine costing
more than $4,000 would pay no more
than SOS Under Senator La Follettes
system a car costing. for Instance
$4,000. would have 20 pay $500 tax.
Senator La Toilette argued with the
committee that under the graduated
tax owners OF the most expensive cara
would escape their fair proportion OF
tax. while owners of the cheaper cars
would have TO pay more than their
share. Judging from comments heaia
By members of the Finance Commit
tee after the conference yesterday. IL
IS considered likely that senator la
Follette's scheme will be adopted.
The committee spent the day make
Inc slight changes In the revenue bhl
80 as 10 perfect Il for Introduction in
the Senate the latter part o. the week
This process of alteration in minor
details will keen the committee oc-
cupied until Friday.
Among the changes made by the
committee was 10 increase the taT
upon cigarettes MS fixed by the House
Cigarettes we Ching less than thret
hounds a thousand viii be taxed ~
or the thousand instead OF the House
tax OF sips. while cigarettes weigh
ing more than three pounds thous-
and will be taxed $3.50 instead Of
S2.6O The cigarette tax 0s well as
that upon cigars. fxed last week. Is
10 20 into effect within ten days after
the siening Of the war revenue bill
Cigarette paner in packages OF less
than TWENTY-FIVE sheets was exempted
This affects the give away" paper
To cQuali7e the tax ON distilled spirits
manufactured during the remainder OF
tho war Co conform TO the heavy tax de-
cidcd upon ON Monday the committee
agreed to recommend an increase on
rrAue brandy used Ia Terrifying spirits
from ten cents n gallon, the existing
tav. so Sll0 q gallon The House had
fscd a tax oi twenty cents. The com
mii+co aarcel that TO leave a low ta'
nion sritits used TO strengthen wine
wrnld Give thom an advantage over th
vhi~tcv dsthltrs.
This tax wiz make an appreciahlc in
crcase in fhc retail price Of wines manu-
iaciulcd duriug wartime. The commit
tee decided not to increase direct tar
upon wines and beer beyond that iixc,
hv the House II rejected q proposa
10 increase The llousc tax Of fifteen cents
rrllon on rcctiied spirits.
No further change was made in The
tax on distilled spirits. The COM
nttee agreed 20 retain The House i'm
crease nnon Wliiskev sold out of bond
from Sll0 The existing tax. 10 $500 per
gallon. Il is estimated that a gallon Of
,ghiskov. with the manufacturers tax
imposed Monday and the tax of $500 n
aallon agreed upon Yesterday, will run
the manuiacturers' sale price up to near
lv s0 a gallon The retail price. allow
ing for middleman's profit is expected
70 rnn it up above Sll a gallon.
iiouor rates in the war tax bin were
further considered by the Senate Finance
Committee and IT, was decided 20 retain
The House tax II fifteen cents a gallon
IN reriiied spirits, estimated to rails,
81 500 900 in revenue
Much approval was expressed In Con
cress over the committees sanction Of
nroNihiiory tax upon distillation @
wluskey and other similar liquors 70
beverage purposes Senate leaders sal
fhc tay designed both as a food consei
walton and prohibition measure. woul
have strong support Ia the Senate.
The committee decided not 90 chang
The House taxes on wines and beer. esi
mated 90 yield respectively $4,000 Ot
end So 100000. Present rates are dor
blef. substantially. BY the House bill
Changes In tobacco rates previousl
announced were formally adorted hy n
committee. expecting that it increase
taxes on cigarettes 10 81 a thousand 4
those weighing less than three pounds
thousand and to $3.50 for those abo
that weight
Many administrative changes IN z
liouor sections were made bv the coi
mitfcc which increased from TWEEN
cents 10 Sll0.a gallon the House IA
on grape brandy. used for fortifcati
purposes. 10 maintain the present pari
between those using distilled spirits a
brandy in manufacturing wines.