Arizona republican., 1917-05-30
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 WASHINGTON, May 29.-Decisions on nearly all important questions in drafting the $1,S00 ,O00, ,000 war tax bill has been reached late today when the senate finance committee sus- pended its work over Decoration day. Except for the liquor and stamp taxes carried in the measure as it passed the house, the committee has settled the major principles of revision with view toward reducing the house total to around $1,500. .000,0
 The principal decisions today were: Elimination of the general tariff tax of 10 per cent ad valorem on all inn ports (estimated to raise S200, ,000) and substitution of excise or consump- tion taxes on sugar, coffee, tea and cocoa.
 Reduction of the house increases in taxes on cigars, cigarettes and all oth CT tobacco products from about 100 per cent to 50 per cent, with no esti- mated reduction in the $7S,200,000 de- signed to be brought under the house rates.
 Elimination of the house taxes of five per cent on consumers electric 1 light and power, gas and telephone bills, estimated by the house to raise in all S3O,00O,00 The committee. how ever, proposes to retain the tax on tel egraph and long distance telephone messages,
 Elimination of taxes on all insur- ance. involg ing revenue loss of $5,000, | 900.
 | Addition of a new per pound tax upon confectionery, estimated to raise i from $10,0Q0,G0 to 5,000,0 900 to be paid by manufacturers.
 Reduction of taxes on soft drinks and their ingredients to make the total levy about $15,000,000 instead of s20- 600, ,090.
 Secretary McAdoo urged committee members to bring out a bill levying rear the S1.SC0 100000 total of the house, but committee sentiment was said to be virtually unanimous against him and in favor of providing througn short term bonds any money needed in excess of s1.500, 000 GOO
 The committee fixed the new excise | tax on sugar at half cent a pound and that on cocoa at three cents a l pound, estimated to yield respectively s45, 100000 and s7,000,c00. Coffee and tea rates were not definitely deter mined but it is expected they will re- main at one and two cents pound re- | spectiveiy, as fixed by the house bill. Taxes on sugar cocoa. coffee and tea will be paid directly by importers or manufacturers, though ultimately probably by the consumer.
 It is estimated that the excise rev enues would be somewhat less than the $200. .000,00G estimated from the pro- posed tariff levy, and they may reacn only s150.000,000.
 Senators said the house taxes on public utilities, including those on pipe lines transportation. freight, express
 fIafi nIaal lNl would D l etained
 The opinion was generally expressed that the committee will reject the pro- posal of Senator Hardwick of Georgia and postoffice department heads for a new postal tax upon newspapers, mag aZines and other second class publi- cations, based upon their proportion of advertising space. Senator Hardwick promises to carry the fight to the sen- ate floor.
 A tentative draft of the proposed new federal license tax on automobiles based upon their horsepower was re- ceived today but not acted unon. The treasury department submitted esti- mates proposing to raise S25,0O0,00O from the motor vehicle business, upon q minimum of BIO payable by the ve- hicles owners, and a graduated surtaX of 25 cents per horsepower. Several senators are insisting upon increasing the revenue from this source to $40, 900, 900 and believe the 25 cents horse ? power surtax too small. Until another estimate based upon the selling cost of cars is received, action is deferred.
 In reducing the house rates on soft drinks and their ingredients, the com mittee, it was stated, proceeded with the idea of levying the bulk of the taxes upon soda fountains or other bev- erages containing carbonic acid gas Continued on Page Two)