The sun., 1917-09-11
WAR TAX BILL
PASSES, SO T04
Senate After 1O8 Days Ap-
proves Measure Appropriate
ing 2.4O6.6 100000.
Specinl Despotch to THE Srs

'pSf"t bespOtUW 70 M s'N
WAsHISGToN, Sept. 10--The Senate
to-day passed the war revenue bill by a
vote Of 60 to 4. In the final count only
Senators Borah. Gronna, La Toilette
and Norris recorded themselves in OPP
position to the measure in its entirety.
The Senate's action, which had been ad.
mitted to he an ultimate certainty
throughout the entire afternoon Of
voting upon amendments to the Finance
Committees bill. is the climax OF 10S
days Of deliberations in the Committee
on Finance and in the Senate itself.
The gross levy which II Is estimated
the hill will provide is $2.4oS,sTo.0oo.
The bill as passed by the House May 20
called for sl.S67,s70.000.
The amendments written into the
measure in the last hours OF its discus
sion reduced It from the estima ted
amount of yesterday. which was $2.500,-
900, 900. Nevertheless, and even consid-
ering the changes, it is by many millions
Of dollars the largest revenue enact
nent ever passed by legislative body
and provides for the collect ion of a reve-
nue. within a single year Of practically
half the entire cost of the American civil
war as expended by the Federal Gov
ernment between the years 1861 and
1865
Ss42,2OO,OOO From Incomes.
OF tho $4,000, 900 900 new taxes pro-
vided for in the tax bill for the duration
of the war. Ss42.200.0 900 is to be taken
from incomes. corporate and individual.
and 81 lO60. 100000 from war profits.
Most of the remainder Is lived on liquor.
tobacco and public utilities.
No changes were made by the Senate
in the two vital sections. incomes or war
profits The House income tax levy was
increased from $3.50, 100000 to 3s42 ,000,-
600, with the House provision for $780,
900, 900 additional by retroactive tax
on 1916 incomes eliminated. In the
House bill 5000, 200. 900 additional was
levied by doubling present excess profits
taxes. while the Senate bill raises 81 ,060.-
0o0. 900 beyond present returns Of s226.-
600 900 from both normal excess incomes
and war profits Of corporations and In
d dlviduals. by a new system of rates
graduated from IL to 60 per cent. based
on the three year pre-war period Of
1918. The Senate also repealed the
present special munitions tax raising
S25,OO0,0O0.
OF the income taxes $se,l3&,000 more
would he raised from the new per cent.
normal tax on individual incomes and
1898 OF 900 from surtaxes, ranging from
! per cent to 50 per cent, on incomes of
from 5000 to 100000. The bill low
ers the exemption from the normal tax
of $4,000 for married persons with an
additio ional 5000 for each dependent child
and 81 900 for single persons.
To-day's series OF votes on amend.
ments to the Senate measure resulted In
succession OF Finance Committee vic.
tories. except In the vote to eliminate the
consumption taxes on sugar. tea. coffee
and cocoa. Here the radical element
with sturdy auxiliary of Southern
Democratic Senators, voted first to
strike out the coffee tax by 81 to %
Then they voted out the Senate para
graph of the sugar tax by 90 TO 2s. and
Immediately thereafter, by vote of 81
10 IS, voted TO eliminate the entire con.
sumption tax section. BY vote of 6e
TO II the provision for repeal Of the
present law allowing ''drawbacks'' o,
manufacturing re-export allowances te
sugar refiners was eliminated
1t was felt by some OF the. moro con-
servative members OF the Senate tha,
the defeat Of the consumption tax sec
tion represented considerable lodging or
the part of many Senators who feared
the unpopularity of a high taxation Law
among their constituents. It Is knowr
on all sides that should the war con,
tinue consumption taxes will be a neces
sary part of later war revenue legisla
ton Nevertheless they baked al plac
| ing taxes on necessities at this time.
Postal Rates Unchanged.
Tho newspaper and periodical press o,
! the country won n victory in the defeat
OF the postal rates section OF the bill
when on the first test vote the McKellai
! amendment providing for the application
of the zone system OF postal charges be
sond 400 miles to second class matter
was stricken from the bin by IA vote %
40 to -.
Senator Hardwck's substitute 10 pro
vide a zone system increasing seconc
class postage rates on advertising por
tions Of publications also was rejected
iS to 20. After this the Senate had an
| Continued on Fun Page.