New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-01
Senate Puts War Burden
On Profits and Incomes
New Bill Orders Radical Increase in Tax on Tx
cess Gains-EIouse Total Cut to s ,65Z,OOOOOo
Measure Virtually Rewritten

Washington. June 3O-Revision Of
the $500. 100000 war tax bill, passed
( by the House five weets ago. was COM
rloted to-day by the Senate Finance
Committee. The measure virtually was
rewritten and reduced to 1852, 10000
with no authorization for additional
bonds. The final Graft was sent to the
printer tonight, and will be given for
nal committee approval Monday and
reported TO the Senate by Chairman
Simmons carly next week.
Incomes and excess profits will bear
about two-thirds of the new tax bur
dcns under the revised bill-about
$500 900 900 each-with a large share
Of the remainder to be taken from
liquors and tobacco. Many taxes pro-
posed by the House were entirely eliml-
mated and others added by the commit
tee.
No Additional Bond Issue
Radical increase Of taxes on war ex-
cess profits of corporations, partner
ships and individuals, decided upon to-
day, enabled the committee to dispense
with the suggestion made of an add
tional bond issue Of from $500, 100000
70 $1,000 900. 900. Senator Stone with
drew an amendment for a s5OO,OOO,OOO
issue. While the bill falls short by
about $500 900 900 Of meeting the Treas
ury estimates of war expenses next
wear. the committee decided that by
issuing s1S5,O0O,0O0 of authorized but
unsold aPnama Canal bonds the ex-
penses can be met until Congress re-
convenes in December.
As finally drafted, the much debated
publishers tax section proposes per
cent tax upon publishers profits over
$4,000, yielding s7,5OO,Ooo revenue and
an increase of a quarter of cent
pound in second class postage rates
yielding 100000.
Heavy Tax on War Profits
Excess profits due to the war, under
the revised bill. would bear s73O'oOO'-
600 in taxes. graduated from IL to 40
per cent, according to the proportion OF
excess. This is an increase OF S5O5,-
100000 over such taxes under the pres
ent law. the repeal of which is pro-
posed. and 0,000,00O more than was
proposed by the House bill.
From income taxes S532, 700, 900 would
be raised. s66,O00,000 less than the
House provided the decrease beng
made entirely upon incomes of $4,000
annually and above-with the commit
tee approving the House plan of lower
ing income tax exemptions to $1,000 Tor
single persons. $1,000 for married per-
sons. normal taxes of per cent upon
incomes up TO $4,000, and surtaxes
graduated from 10 80 per cent upon
larger incomes.
TIE committee also changed the plan
of collecting income taxes from that OF
collection at the source" to "informa-
ton at the source" to accomplish direct
payment
Comparison of Two Bills
A comparison of the estimated reve
under the revised bill and the House
Liquors, s155 100000. against $751;
$1,000; tobacco, s56,600,O0O, against
SIS, 200, 900; freight transportation,
s77,5OO,OOO unchanged; passenger
transportation, s37,500,000, against
$4,000, 900; automobiles, s40,000,000.
against s6S,OOO,O 900 payable under the
revised bill by pleasure car owners
and not manufacturers); amusement
admissions, S23,OOO,OOO against $780,
100000, end first class mail, $4,000, 900,
against S70,O00,000 by retaining the
one-cent increase for first class mail
and striking out the increase on post
cards..
The committee struck out entirely
the House 10 per cent general tariff tax
upon virtually all imports, estimated to
raise S20O,O0O,000. 1t substituted con-
sumption taxes, totalling Ss6,000,0OO
and bearing more directly upon con-
sumers. Of half cent a pound on
sugar. two cents on coffee, five cents