Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-11
WAR TAX BILL HITS
Big CORPORATIONS
Incomes and Profits to Stand
Chief Burden of
Revenue
LEVY TO BE EQUITABLE
WASHINGTON. Aug. II.

WASHINGTON. Aug. IL.
In opening the debate in the Senate on
the war revenue bill, with Its proposed
SO. 006 go 900 levy Of direct taxes. Senator
Simmons. chairman OF the chambers
Finance Committee. said the country must
realize this huge tax would cover only a
little more than one-fifth of the war ex
penditures of this year
THE country Is going to spend somethns
like SIC, ,000, ,000, 900 this year" he explained.
I'VE have sought TO cover as much as we
logically could through the war revenue
bill We realized that we must not put
too heavy n burden upon the people. for
they must have increasingly large burdens
to carry as the war goes on"
In explaining the committees purposes In
redra fling the bill, he declared the changes
made would greatly Increase the tax
burden to be borne by the big corporations
who have proflted from the war. In de-
tailed statement he said the committee had
weighed every schedule carefully during its
many weeks Of consideration and that the
bill as now presented would place the tax
where Il belonged without working injus-
ticc to any one. The House, he said. had
been far too lenient with those who had
'reaped this harvest Of gold"
Senator simmons s1oke of the existing
tax law producing approximately s1,3i3.-
0OO. 900 Of revenue, which. added to the
SO 0O6, go 900 carried IN the war revenue
bill. would make the direct tax this year
aggregate approximately $500, 100000.
I'VE must be as moderate as we can in
applying the direct taN," he warned, 40
that, as the war goes on. we may tap again
and again the great reservoirs from which
the money must come.
gThe people have to pay for this war In
direct taxes, as this bill provides and in
taking up the Governments bond issues
The lesser taxes are applied to the people
the greater ones TO the corporations that
are making large profits out of war indus
tries Upon those who nave the most
money. either through accumulated war
profits or through other means. the Gov
must largely depend for the taking
of Its bonds That means that we must
not put the burden too heavily upon busi-
ness, and yet business must pay its share.
'In framing this tax bill the committee
has tried to distribute the tax where 1t
can most easily rest. We have endcavored
TO put nothing IN the bill that will in any
way work an injustice to business capital,
for TO do harm to that would only be to
destroy the chief source of reve-
nue. that Is to keep the war going"
During his talk Senator Simmons pro-
duced figures to prove the contention OF
the Finance Committee that the tax upon
as II now stands In the bill
would produce much more than 'he original
levy of the House of Representatives.
"The House corporation levy was based
upon fallacy and falseho d." he commented
He produced figures compiled by j. p.
Morgan a. Co. showing that forty-eight cor
porations dealing in the manufacture and
of supplies to the Allies nave
accumulated war profits estimated at $685.
S5S,490 in 1916. Under the Senate excess
Profits tax. he said these corporate ms would
have to pay s2S9.977.272, while under the
House levy il would be S77,736,619.
TABLE WITH STIMATES
table presented made the following
estimates Of the principal war-profits tax
payers: