Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-08-23
j. 5. EXPENSE
FOR 1917 IS
TEN BILLIONS

! WASHINGTON, D. c.. Aug. 10
Before the war, the total annual ex-
penditures Of the United States were
between $70O.O00.00O and $500, 100000
d year. This year they will reach
something like $4,000, 900. 900.
With this startling statement, Sen
ator Simmons began explaining to-
day the s,reat $4,000, 100000 revenue
bill just completed by the senate
finance committee. The chairman
o. the committee took most of his
, time in closely following his report
made public few days ago. He also
explained the difference between the
house and senate bills
Some house members. rotably
Claud Kitchin, chairman CT the
criticized the senate bill. They have
said it was a rich mans bill" and
that it burdened the poorer taxpayers.
Senator Simmons replied to these
criticisms today He alluded to Kitch-
in more than once, but refrained from
using the congressman name.
The senate committee eliminated
from the bill the taxes OH heat and
light put into it by the house." said
Simmons. Yet a member Of the
house has gone into the newspapers
and made charges against the SEN
ate amendments, saying they disre-
garded the rights Of the poor and
sought to discriminate.
Trusts" Hard Hit
"On reliable information | have it
that j. P. Morgan & Co. have calcu-
lated that As great corporations are
taxed $239, 100000 under the senate
bill. while under the house bill, they
we're taxed $77,736, 900"
Senator Simmons said that in the
$2,006, 100000 bill, almost $1,400,000
900 comes from income and war
profits, and about $2O0,000,0OO from
intoxicants.
Incomes and war profits" he said,
Should be the CHIEF and just source
of revenue to carry on the war. APP
parently the public did not take this
view.
War profits for 1916 exceeded
$4,000, 100000. So the house est.
mate Of $500, 200 900 from war profits
in the bill by which it sought to
raise 81 800, 100000 does not meet
the manifest equities of the situation
At least one-half of the sum to be
raised should come from incomes and
excess profits
Simmons also called attention to
the fact that the senate bill taxes
war profits" not excess profits" as
formerly proposed.
Corporation taxes had been in.
creased, he said, because of the re-
cent deficiency estimates for the
army; and because of an alleged dis
elimination against partnerships.
Liquor Taxes
Reduced tobacco taxes would raise
the same revenue as the house by
better distribution, the senator argued
Increased liquor taxes were added be-
cause of the provision In the food con-
troll bill stopping manufacture Of
whisky.
The zone. postal system the house
intended to place on second-c1ass
mail matter was eliminated, said
Senator Simmons, because publishers
convinced his committee that this
plan would not only be burdensome,
but in a number Of cases disastrous
to many valuable publications"
The BILL" he said, reflects the
best thought of the committee and is
designed so that in the years TO come
the system of taxation will be flexible
under the changed conditions. It
seems clear that by its amendments
the senate has relieved the people of
the country of paying several hundreds
of millions of dollars which under
the house bill they would have been
compelled to pay either to the govern