Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-08-18
SENATE GOES ON RECORD AS DE-
cLARlNG CONFLICT is ONE
INVOLVING WEALTH.
ORDERS $4o.ooo.ooo
LEVY ON MOTORISTS
Burden Is Placed Upon Owners In
stead of Manufacturers, as Proposed
In House RiII-Machines Costing Un-
der $500 Must Pay SIS Per Year and
Above $500 More in Proportion.


the senate of many unconteste provi-
sions of the s2,006, 100000 war tax bill
almost cleared the way for the sharp
fight which probably will begin Mon
day over income and war profits taxes.
Among important fea lures disposed
of during the day were the wine and
motor vehicle schedules. The reviSions
of the finance committee levying be-
tween 100000 and $50. 100000 on
owners of motor vehicles instead OF
s6S,000,0 900 on manufacturers as pro-
posed by the house bill were adopted,
as were the increased rates on wines,
estimated to raise s21,000000, against
$4,000 900 under the house rates.
House provisions levying per cent
tax upon gross sales OF many manu-
facturers and designed to raise s11S,-
10000 also were formally eliminated.
The senate accepted the finance COM
rittee's action in striking out the
house provision for additional federal
taxation of inheritances, designed TO
raise s6.OO0.000. New England senators
protested that inheritances are prime
source of local and state taxation and
shuuii not BE interfered with by the
federal government.
Here's Auto Tax Schedule.
An amendment to the automobile
section imnnses a surtaX of SO for
each $500 value on ears costing more
than $4,000. AS accepted the section
now provides the following motor We
hicle taxes, payable by owners of those
not used exclusively for business pur-
poses:
Motorcycles. $3.50; automobiles COST
ing under $500, IS annually; costing
between $500 and 800, $3.50: costing
between $3.50 and $1,000, SO. and S.
additional for each $500 up to $4,000,
and $40 for each $500 above $4,000
Plan s7.53s,s45,ooo Bonds.
The tax based upon original list
price would be reduced by 10 per cent
for each years use Of the machine up
to gross allowance OF so per cent.
Senator Smoot said that the motor
tax would fall on those able to bear ii.
Any person using an automobile with
present prices of gasolene and supplies,
he declared, can well afford the tax.
The proposed special tax on publish
ers' incomes and the increase in second
length today, but action was deferred,
probably until next week.
A total issue of bonds to the amount
of s7,53S $4,000 is provided in a tenta-
tive bond authorization bill submitted
to the ways and means committee Of
the house by Secretary Of the Treas
TRY McAdoo today.
$4,000 600 900 to Allies
OF this amount s4,000.00O,0OO would
be to raise new revenue to finance
loans to the allies and the remainder
would be to take up the recent issue
of $4,000, 00O,0 900 bonds at 31s per cent
and to replace money taken from the
sale Of Panama canal bonds as author
lied by congress to carry On the war.
The new bonds would be issued at 4
per cent, according to Secretary Nc
Adoos plan, but the income from them
would be taxable from three sources
namely. thru the war profits tax, thru
the excess profits tax, and thru the
supertaX on incomes.
Halt War Tax Dodeing.
Secretary McAdoo has suggested this
scheme of taxing bonds and of increas-
ing the interest rate for a number Of
reasons. chief among which was that
the bonds thru this scheme could be
made much more attractive for the
small purchaser who would not be at
fected by the taxes enumerated. The
large purchaser, however. would not be
affected by the taxes to exceed one
half Of per cent except in cases
where he made extra ordinary purchase
of the bonds.
The proposition Of taxing the bonds
thru this scheme also has the added
advantage, Secretary McAdoo has in
formed members Of the cammittee, in
that it would prevent the conversion
of war profits, Of excess profits, and Of
private capital into nontaxahle govern
ment bonds.