The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-08-06
REVISED WAR TAX.
BILL Is DEFENDED.
BY SENATOR'S WHO.
DRAFTEDMEASURE.
Committee Reports That
Increase is Derived
From War Profits
INCOMES ARE ALSO
FORCED TO PAY MORE
Taxes on Electricity, and
Gas Eliminated as Blow
At Poor Man

Washington, Aug. g..
The war tax bill was re-
ported to the senate today
as revised by the finance
committee to meet the lat
est estimates for war ex-
penditures.
The majority report was
submitted by Chairman
Simmons, who explained
that the committees revl-
sion of the house bill was on
the principles of raising
revenues with the least bur-
den upon the public. A sub
substitute report with a
substitute bill is expected
from Senator La Toilette,
Senators Gore and Thomas
also plan a separate report.
Senator Simmons report
stated that a flexible scien-
tific war tax superstructure
had been constructed by the
senate committee for the
imposition of war taxes
the largest tax budget IN
American history-as well
as for future tax increases
declared probable.
Income, war profits, liq-
uor and tobacco tax in
creases, the majority report
pointed out, form the nu-
cleus of the revised bill.
4 In b general statement Tor the
committee. Senator Simmons said:
ut has at all stages acted with a
keen sense of the extreme import
Il
the country and the successful pro-
secution OF the war. Nor was it un-
mindful that those who will have to
nav these exactions will also have TO |
furnish the larger part of the money
to purchase the bonds for expendi- |
lures not provided for by taxation |
and also as we may be called upon to ]
loan to foreign governments en5aged
with us in war against Germany.
Your committee was profoundly
impressed with the expediency and |
necessity of broadening and develop
ing our system of special taxation so |
as to present a scientific scheme, |
logically constructed; to provide a |
superstructure sufficiently strong and |
flexible to meet not only our present |
but our future war needs, and so |
adjusted as to distribute equitably i
the necessary burdens of taxation ana
safeguard the activities Of the nation |
by imposing no tax which would not
leave the tax payer reasonably
compensatory return from his in
vestment.
incomes and War Profits.
'The basis of the system proposed
by your committee is the income and /
war profits taxes, internal revenue
taxes upon whisky and tobacco, and
certain moderate subsidiary levies In
the nature of excise taxes. The sys-
tenn presented is in form much the
same as that in the house, but 1t has,
1t is believed, been systematized, CO.
ordinated and made more consistent.
LAS the result of these changes 1t
Is estimated that about two-thirds of
the additional revenue expected will |
come from the income and war pro-
fits taxes In fixing the rates upon
incomes and excess profits your com
mittee kept constantly in mind the
fact that the amount of revenue de- |
rived from these sources would de-
pend upon the prosperity and acti-
witty of business and that TO impose
taxes which. would tend to discour-
age enterprise and dampen these
activities would tend to defeat the
legislative purpose. Moreover, 1t
thought that il the rates upon in
comes and excess profits were fixed
at the highest level there might be
but little margin left for further in
creases in rates"
The report defends the elimination
OF the so-called Lenroot surfaces on
incomes Of over $4,000 added in the
house. designed to raise $66,000,000
ae follows:
TN view OF the fact that in addi-
fion to the large increase in the nor
NAL tax and surtaxes upon incomes.
the bill provides for large increase
in the war profits tax of corporations
and partnerships and includes indi-
viduals In the scope of that tax, and
in view Of the probability that it will
be necessary hereafter to further i'm
crease these rates in order to pro-
vide for increased war expenditures,
your committee believes that for the
present it is inadvisable to iIlcrease
the surtax rates beyond those pro-
posed in the original house bilp'.
Regarding the elimination of the
house retroactive income taxes on
1916 incomes. which would have
produced sos 900 900, the report
stated: q
sThis tax seemed ia principle both
morally and economically unsound.
Incomes Of the last year have paid
their taxes ana the balance has
either been spent or saved and ad-
ded to capital. In which form IL win
yield returns in the ensuing years ]
Continued on page FIVE