The sun., 1917-08-31
TAX BILL WON'T
LIFTP.0. RATES
Senate Is Expected to Elimi-
nate Zone Charges on
Publishers.

"AshINGToS, Aug. 30.-The Senate
tonight agreed that on Monday. Septem-
Der 10. at p. NJ. 1t would vote finally
on the passage Of the war revenue bill,
which has been officially before the SEN
ate since August and under discussion
from time to time for more than three
months.
II became practically certain to-day
that the Senate's action OF yesterday In
adopting the Mcclellan amendment to the
postal schedule whereunder the zone
system OF postage charges would be ap-
piled to newspapers. magazines and
other publications would be reversed
after the Senate has completed its re-
vision Of the war profits and income tax
features. On this point Senator Weeks,
assachusetts. said tonight:
The action Of the Senate yesterday
must not be taken as q definite indicat tion
Of the Senate's final disposition Of the SEC
ond class rates. When the bill returns
to the Senate from tire committee Of the
whole there will be vote upon my
amendment 10 strike the entire para
graph concerning second class postage
from the bill. and l feel justified in the
prediction that 1t will be adopted"
Agreement for Vote.
Unanimous action on the part OF the
Senate In agreeing to vote on the bill
on September 10 solved the difficulty
enRendered through yesterdays intro
duction of petition for the applica-
tion OF cloture rule signed by more
than the necessary number of Senators
to force its adoption. II was. in way.
surrender on the part OF every faction
Of the Senate engaged in the struggle
to revise the bill.
The agreement was reached after a
day OF spirited debate between Senators
simmons and Underwood on war profits.
after much negotiation over details and
after Senator la Follette had blocked
an effort to fix next Monday as the
day for a vote.
The unanimous consent agreement
provides that, beginning tomorrow
morning. the debate will proceed on the
war profits tax schedule OF the bill.
This will continue until next Wednes-
day, when n final vote will be taken
on this schedule. At O'Clock next
on the income tax schedule Of the
pending bill. Then at 4 o'clock on
Monday afternoon, September 10. the
Senate will begin voting on the war
revenue bill itself and all pending
amendments.
La Toilette Substitute.
This provides that between Friday
and Monday the vexed question Of the
sugar drawback and the postal rates
section can be considered and altered
to meet the views of the Senate mem
bershlp. During this period the Senate
will consider Senator La Follette's sub
stitute for the war revenue bill intro
duced Sto-day, which provides for the
elimination of all the special consump-
ton, luxury and admissions taxes con-
tanned in the bill and the retention only
Of an income tax section estimated -
Yield S760,000. 900, the present liquor
and tobacco taxes and the war excess
profits tax The estimated yield OF
the last item will range between one
and half and two and quarter
billions OF dollars, based upon Nat
rate OF taxation at such paint between
IS per cent. and 76 per cent. Of the
excess war profits of corporations.
firms and individuals as the Senate
itself may determine. The maximum
Weld of the La Toilette substitute bill
Is estimated at $4,000. 100000.
Senators Hollis, Gore and Brady
sponsored provisions to increase the war
profits levy TO rates ranging from so
to &c "a per cent.
Underworld stand.
Senator Underwood addressed the
Senate on the Bankhead amendment to
the excess profits schedule He took i
position in the middle ground between
the radicalism OF the Forah- j ohnson-I.a "a
Toilette group and the Senate committee
In supporting. his argument in favor OF
a graduated excess profits tax Senator
Underwood said:
II have no Opposition to the Finance
Commuters proposed tax on income eN-
cept that there are certain exemptions
OF great institut,ors " this country, and
I shall vote against those when the time
comes. | am not here to oppose levying
a tax on war profits, for l favor Il. but
not the scheme worked out by the
Finance Committee. 1t Is the commit
tees method oppose.
This bill as originally reported to the
committee by the Senate left out en-
tirely percentage basis OF exemption
upon which "A tax should be placed, with
the result that IL one business was maxi
Nng no profits in the three years fixed by
the committee as the 'pre-war period on
which to base exemption, then that busi-
ness would be taxed under the higher
rates; II would have no exemption But
" another business WAS paying 100 per
cent. during the pre-war period II would
have 100 per cent. exemption before any
taxation fell on IT,"
This presentation Of the argument by
Senator Underwood wrung from Chair
man Simmons the admission that the
charge laid by NJ. Undsswood HaA tyuss