New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-04
Calls for an Increase of
$327,OOO,000 Over
Original Draft
S124,OOO, 1000 Added
To Levy on Liquors
Corporate Incomes to Suf'
fer Heavily; All Bank
Checks Taxed

Washington, Aug. 3.-The war tax
bill, under revision since May "a was
put into final form for report TO the
Senate to-day by the Finance Commit
tee. II provides for approximately 81
600 900 900 in taxes to meet war eX-
penses, but makes no provision Tor iur-
Their bond authorizations.
The bill was increased Sl33,OOo,oVo
over the total as it passed the house
About 1927, 900, 900 was added during the
last week because of the latest war
estimates. The final redraft was sent
70 the printer tonight and will be pre-
scented TO the Senate as a bipartisan
measure Monday and probably called
nm for debate Wednesday. Senators La
Toilette, Gore and Thomas plan sep
arate report advocating higher TAX
The new increase of 1927 OO0, 900 over
the committees original draft is DIS
tributed approximately among the toi-
lowing additional levies: ooo.
On corporate incomes, S162,OOOOOO;
additional surfaces on individual m
comes of $4,000 and over, S275OO OUV;
distilled spirits, S9500O,000; beer, sl2'-
10000; wines, SlTOO0,O0O; war excess
profits, S5O00,000; bank checks, S2,OOO.-
900: floor, or stock taxes on sugar. col
fee, tea and cocoa, s6,O0O,OOO. Total
S327, 100000.
Levy on Corporate Incomes
The additional levy on incomes Of
corporations applies also TO partner
ships. Joint stock companies and asso-
Citations, including life insurance COM
panies. Their normal income tax is in
creased to 8 per cent, ! per cent more
than the present law and per cent
above the original House and commit
tee programme.
The increased surtaxes fall entirely
on individuals having incomes Of Sl5,-
600 or above. They range from per
cent on $4,000 incomes TO a maximum
of 80 per cent on incomes in excess OF
100000.
An additional 81 per gallon tax is
imposed on distilled spirits withdrawn
from bond, except those used for in
dustrial purposes, increasing the tax
on distilled beverages TO $500 per gall
lon, as compared with the present rate
of sl10 The committees prohibitory
tax on grain, molasses and other in
gradients Of whskey TO stop further
manufacture also is retained.
Beer would be taxed So per barrel,
double the present rate. Wines would
bear virtually treble their present
taxes. The House levy was only
S6,O00000 on wines.
In greatly increasing wine taxes the
committee decided to levy 4 cents per
gallon additional, doubling the present
tax of 4 cents on dry and still wines
containing less than II per cent of
alcohol. On sweet wines, liquor, cor
dials and other compounds the new
rate was fixed at sl.l0 per proof gall
lon, double the present law. On alco-
hol used for terrifying wines the new
bill levies 81 per proof gallon in add
ton to the present tax of 10 cents per
gallon.
Present taxes on champagne. spark
ling and artificial wines would be
treblcd. Total taxes on champagne and
sparkling wines under the revised bill
would be nine cents a half-pirt and
on artificial wines four and one-half
cents a pint.
That the new extra tax of 81 per gal
lon on distilled spirits shall not ap-
ply TO that used for industrial or other
than beverage purposes, such as for
making medicine and perfumery, also
was provided.
Taxes on Tea and Coffee
The new floor or stock tax on sugar,
tea, coffee and cocoa was modified to-
day in favor of retailers. The follow
ing amounts Of such products In their
hands will be exempt from the floor
tax:
Tea, fifty pounds; coffee, two hun
I dred pounds; sugar, five hundred
( pounds; grape sugar or glucose, one
/ hundred pounds, and saccharine, one
/ pound No retailers exemption for
cocoa was provided.
The S5,OOO0O0 increase on war ex-
| cess profits was added by minor
/ changes in the schedule Of such taxes
| providing for total revenue Of $685.
/ 100000. The $4,000 900 additional from
| bank checks would make $4,000 900 in
| all from that source. The committee
originally planned 10 tax only checks
of s. or more, but decided to-day TO
! extend the one cent rate TO all checks
! The committee also wrote in new
provision exempting from all postage
| letters written by American soldiers
/ and sailors in foreign lands, and pro-
vided that the proposed new tax of one
| cent on each % cents paid for trans
porting parcel post packages shall not
! apply TO packages weighing less than