New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-11
War Tax
Bill Passed BY the Senate
Upper Chamber Increases House Figures by More
Than $54OOOO, OOO-"Breakfast Table Seized
ule and Increase in Mail Rates Are Eliminated
"Conscription of Wealth" Element Decisivey
Beaten-Vote Is So to

siderably more money, ard as the
House conferees are not aveTse 20
heavy taxes on corporations. Some
-trength is lent this belief because Of
the public statement OF Speaker CLARK
that ne favored taxing war profits so
per cent. The House may be given an
opportunity TO vote on the Senate bill,
or ut least of accepting the excess
profits section Of that measure, before
the bill is sent to conference.
4 vide difference, however occurs on
postage rates. The House provided for
three-cent letter postage and for a
zone "ystem for magazines and news
papers. The Senate struck out both.
The three-cent letter postage wouln
have brought in about $4,000 900 Of
revenue. while the increased second
class rates would have brought IN
about Sl9,000OO0 more.
Tax on Incomes
The House income tax levy was in
creased from s596 100000 10 sS42,000.-
600. with the House provision for sl0S,-
100000 additional by a retroactive tax
on 1916 incomes eliminated. In the
House bill S200.000,000 additional was
ItNltu % uouD'iHb present tNNCeH
profits taxes. while the Senate bill
raises 81, ,O6O 900 900 beyond present re-
turns of 1926 ,000, 900 from both normal
excess incomes and war profits OF cor
porat.ons and individuals. by a new
system of rates graduated from 10 to
so per cent, based on the three-year
pre-war period OF 1911-'13. The Senate
also repealed the present special mu-
nitions tax raising s25. 200. 900.
OF the income tayos sS9.l33, 900 more
would b. raised from the new per
cent normal tax on individual incomes
ard S393.077, 900 from SurtaX1s. ranging
from J per cent 10 30 per cent on in
cones Of from $4,000 70 100000
The bill lowers the exemption from the
normal tax of $4,000 for married per
sons, with an additional 5000 for each
dependent child, and $1,000 for single
persons.
Fight Over Postage Section
The House conferrees, in fighting for
increased second class postage rates,
will be able TO use with force the SEN
ate's vote to-day on the McKellar
amendment. This amendment provided
a zone system. but at lower rates than
the House bill. Il would have raised
about Sl2,600.000. as against the Sl9,-
100000 Of the House schedule. |; was
defeated IN the Senate to-day by
majority of only G. the vote being 10
10 50.
The Mcclellan amendment was origi-
nslly adopted BY the Senate. and the
overturn IN the vote follows the most
persistent lobbying which. with the one
possible exception Of the Anti-Saloon
League. either house OF Congress has
seen for years.
The same development OF sentiment
against consumption taxes. which re-
suited in vote to-day OF 81 10 p
against the levy OF two cents a pound
on coffee, is expected 70 cause the
House 20 yield on this. and on TIE
sugar. tea and cocoa imposts.
One OF the most surprising votes
OF the day was on the inheritance tax
amendment of Senator Owen.
The Senate had stricken out the House
additional Inheritance taxes. Mr. Owen
moved 10 adopt them. with additions
scaling up until 100 per cent was taken
Of all estates in excess Of S9o,000,00O
Thirty Senators voted for this amend
ment and fifty-One against. Senator
Pomerene. Of Ohio. afterwsrd stated
that he voted for the amendment with
out understanding IL, so twenty-nine
actually approved L.