Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1917-08-07
WAR TAX MEASURE
GIVEN TO SENATE

WAR TAX MEASURE
GIVEN TO SENATE
CONTINUED From Page ~
ed from incomes. It proposes levy o!
$685., 100000 on war profits and extends
the tax to individuals in trade or bust
ness as well as corporations.
The house tax yield on distilled
spirits Of 500, 100000 is raised to s13b-
100000; that on beer from $37, 500. 900
to sac, 100000 and that on vines from
$4,000, 900 to $21 100000. A prohibitive
tax on further manufacture or importa
ton of distilled beverages also is pr o.
vided.
EXPECT BIG COST YIELD.
The original senate committee prov1-
sion for an increase of u Of ! cent a
pound in publishers mailing rates and
a 5 per cent tax upon their net incomes
over 81, 900 in lieu Of the house plan for
increasing postal rates by zone sys-
tenn was retained The house provi-
sions for imposing Spanish war stamp
taxes were substantially retained.
The total estimated increase in fed
eral revenues Of $2,006.970,0 900 propos-
ed under the amended bill was said to-
day by Chairman Simmons and treas
ury exports to be conservative. Many
Of those in charge OF the revision be-
lieye the bill will in actual operation
yield many millions more.
WAR PROFITS TAX.
Defending the new plan Of taxing
war profits the report said:
THE house bill would impose tax
of 16 per cent on excess profits. Great
Britain's war profits are now taxed 80
per cent. Canada's were Increased
from 25 to Is per cent, and the New
Zealand is As per cent. The committee
proposes instead Of an excess profits
tax a war profits tax.
1.-THE change of basis seems desir-
able not only because it is equitable
but because It's successful collection
will be greatly facilitated. The COM
mittee reached the conclusion that a
graduated tax beginning with IL per
cent and reaching fifty per cent at
its higher would be far more equitable
than flat tax of 16 per cent"
LEVY ON CORPORATIONS.
In defending the proposed tax of 10
per cent on undivided corporate in.
comes, the report said
Neither existing law nor the house
bill imposes surtax on undistributed
earnings of corporations. In these
conditions the earnings OF corporations
escape surtax. This seemed to bring
about an inequity between the corpor-
alton and the Individual Your COM
mittee believes the situation would be
best met by imposing the surtaxes up
on such portion of corporate-retained
surplus not retained for employment
in the business and by imposing the
additional tax Of per cent upon cor
porate incomes while imposing on In
dividual incomes only an additional tax
equivalent to ! per cent Of the normal
tax"
The majority report was submitted
by Chairman Simmons, who explained
that the committees revision of the
house bill was on the principle OF rails
ing revenues with the least burden up
on the public. A substitute report with
a substitute bill is expected from Sena-
tor LaFollette! Senators Gore and
Thomas also plan separate report.
Senator Simmons report stated that
a flexible scientific war tax super.
structure had been constructed by the
senate committee for the imposition OF
war taxes-the largest tax budget in
American history-as we'll as for fu-
ture tax increases declared probable.
CHANGES ARE DEFENDED.
Income, war profits, liquor and to-
bacco tax increases, the majority re
port pointed out, form the nucleus Of
the revised bill.
In a general statement for the COM
mittee Senator Simmons said.
1.-The system presented is in form
much the same as that in the house.
but II has, it is believed, been SYSTEM
affixed, coordinated and made more
consistent
"As the result of these changes II
Is estimated that about two-thirds OF
the additional revenue expected will
come from the income and war profits
taxes In fixing the rates upon in
comes and excess profits your commit
tee kept constantly in mind the fact
that the amount of revenue derived
from these sources would depend upon
the prosperity and activity of business
and that to impose taxes which would
tend to discourage enterprise and
dampen these activities would tend to
defeat the legislative purpose More.
over. II thought that il the rates upon
incomes and excess profits were fixed
at the highest level there might be but
little margin left for further increases
In rates"
Regarding the elimination of the
house retroa active income taxes on
1915 incomes, which would have pro.
/; >>~d s1os 100000, the report stated