Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-07-05
SENATE PROVIDE
FOR WAR TAX LEVY
OF $l,652,l70,000
Cuts McAdOO's Estimates of Ex-
penditures by $14S,00O,000-
No Bond Issue Provided For
New Amendment to Food Bill
Leaves Wine and Beer as They
Are, but Retains the Ban on
Spirits.

Washington, July AFTER six weeks
of work, the Senate finance committee
Saturday night finished it's re-draft of
the war revenue bill passed by the
House AS received. the measure calls
for a tax levy of S1,652,170, 900. which
is $14S,00O,O0O less than Secretary Nc
Adoo told the House that the govern
ment would need to run the war for
this year.
Senator Simmonds, chairman of thee
committee, said that the proposal of
Senator Stone of Missouri, to provide
for raising another S1,000000,OO0 by
bond issue, that the government
would have ample funds for it's require
ments was withdrawn by the Missouri
an after the committee had agreed that,
If an emergency arose, any additional
funds could easily be voted by Con-
gress.
I'VE have provided for sufficient
money to run the war away beyond the
time when Congress will reconvene in
the fall after its summer holiday" said
Senator Simmons. IF the President
finds the levy we have put in this bill
is not sufficient, the deficiency can be
made up at any time. But the govern
ment can run the war for many months
on the appropriation we have fixed"
FINAL ACTION TO-DAY.
While the finance committee voted
for the bill almost unanimously it al
lowed final action to go over until Mon
day out of courtesy to Senator La Fol-
lette, so as to vote on the substitute he
has offered, by which the entire tax
would be imposed upon excess corpora
ton profits, corporation income, liquors,
and tobacco AS nearly every member
of the committee but Senator La Fol-
1aft ic IL.
vote to be taken Monday will be merely
perfunctory.
The increase of approximately $780,
100000 over the aggregate levy agreed
upon by the committee earlier this week
was erected by fixing graduated
scale OF taxation on excess war profits
OF corporations. The amount to be
gathered from this source will be $780,
100000 under the new tax Under the
arrangement decided upon Saturday the
levy will be graduated as follows:
NOT in excess of Is per cent of the
normal profits, ~ per cent. in excess OF
10 per cent and not of 25 per cent, IL
per cent; in excess of % per cent and
not of so per cent, 20 per cent: in ex-
cess or so per cent. and not of IS per
cent, 20 per cent; in excess of IS pei
cent. and not of 100 per cent, 30 per
CENT IN excess of 100 per cent, 80 pei
cent; IN excess of 100 per cent. and no,
or 100 per cent. 35 per cent. and in ex-
cess or $50 per cent, 40 per cent"
The original scheme of the finance com.
mittee was to tax eccess profits 16 pei
cent. fiat; but after Vigorous protest by
representatives of financial interests
throughout the country, the graduated
scale was substituted. The $3.50, 100000 tc
be derived from the tax this year is $685..
100000 greater than the amount now raised
under the present corporation tax. The
excess tax Is to be based upon war profits
OF 1917 as compared with average profit.
of 1911. 1912 and 1913
The nnance committee voted an amend
ment to the tax on undistrbuted profit.
by which an exemption is to be allowed
up to 20 per cent. of such profits. Anothe,
amendment. offered by Senator Penrose
proVi'es that the tax on the undistributet
prontS applies only to surplus earned dur
Ing 1917 or afterward Profits earned nrjo,
to 1917 will be taxed under the rate in e.
rect IN those years. This latter provision
IS expected to act as an inducement I,
corporations to report on the undistribute,
Prohts OF earlier years so that they ma,
get the advantage of the tax rate
RETAINS TAX ON SPIRITS.
AS the war revenue bill has now bee,
compressor - i''dinS ltS levy upon dis
titled spirits and upon wines and beers
the distilled spirits tax is 500 gallo,
for any whiskey. rum, brandy. or ei,
taken from bond. which is double tn,
existing tax. For newly manufactured
distilled spirits the tax would he ~
upon each 100 pounds Of grain used. Til,
distilled spirits tax would yield a tota
of $27S,OOOOO0 on whiskey in bond IL tn
President should not forbid it's use. Tn
aggregate tax to be derived from beer
and wines would run to approximate,
$3.50, 10000. The finance committee viii
leave these provisions in the bill, await
ing action by the Senate on the lquo
problem.
AS finally drafted. the much -debate
publishers tax section proposes five pc
cent. tax upon publishers profits owe
$1,000, yielding 37,5OO,O0O revenue and al
Increase of quarter of a cent a poun
IN second-class postage rates, yieldin
S3,OO0,OO0
From income taxes $500, 100 600 would b
raised-$66 100000 less than the House pro
vided. the decrease being made entirel