Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-08-06
WAR TAX BILL
HARD BLOW TO
BOOZE MAKERS
Senate Committee Reports
Completed Measure For
Consideration.
MANY CHANGES
OVER HOUSE BILL


Tobacco-individuaIs as Well AZ
Corporations to Be Made to Share
Burden Of Wars Cost.
Washington. Aug. 6-The war tax
bill today was reported to the senate
by the finance committee. It proposes
to raise 81, 2,oo6.s7o,OoO by taxation.
The house bill proposed 1867 100000
in new taxes. No provision for addi-
tional bonds to be considered later by
the house are made in the senate bill.
Chairman Simmons plans to call up the
revised bill for debate the latter part
of the week and hopes for it's final en-
actment early next month.
Most of the new taxes proposed un-
der the revised bill for war expenses of
the present fiscal year would come
from incomes, war excess profits, liquor
and tobacco taxes.
The revised senate bill strikes out
the retroactive tax upon last years in
come, but principally by increasing the
surtax on wealthy persons and by
doubling the normal tax on corpora
rions proposes to raise $770,000,000 in
|additonto the $3.50, 100000 now secured
from incomes. It proposes a levy of
$562, ,000, 900 ON war profits and extends
the tax to individuals in trade or busi-
ness as we'll as corporations.
Liquors Hard Hit.
The house tax yield on distilled spir-
it's ofsa$ $1DO00O.0O0 Is raised to $780,
O00. 900: that on beers from $37 100000
to $46, 90. 900. and that on wines from
Sd, ,O0o,OOO.ito $21 100000. A prohibitive
tax on further manufacture or impor-
tation Of distilled beverages also is pro-
vided.
The original senate committee provf-
sion for an increase of one -quarter of
one cent per pound in publishers mall
ing rates and per cent tax on their
net incomes over $4,000 in lieu to the
house plan for increasing postal rates
by a zone system was retained. The
house provisions reimposing Spanish
war stamp taxes were substantially re-
tanned.
The total estimated increase In fed
eral revenues of $2.006, $40 900 proposed
under the amended bill vas said today
by Chairman Simmons and treasury
experts to be conservative. Many OF
those in charge of the revision believe
the bill in actual operation will yield
many millions more.
Committee Outlines Plans.
The majority report was submitted
by Chairman Simmons. who explained
that the committees revision Of the
house bill was on the principle Of rails
ing revenues with the least burden up
on the public, A substitute report with
a substitute bill Is expected from Sen
ator LaFollette. Senators Gore and
Thomas also plan on separate report
Senator Simmons report stated that
flexible scientific war tax super
structure had been constructed by the
senate committee for the imposition OF
war taxes-the largest tax budget In
American history-as well as for future
tax increases declared probable.
income, war profits, liquor and ta-
bacco tax increases, the majority report
pointed out, form the nucleus Of the
revised. bill.
In general statement for the COM
mittee, Senator Simmons said:
"It has at all stages acted with q
keen sense Of the extreme importance
Of its action in its effect upon ths
country and the successful prosecution
|of the war. Nor was 1t unmindful that
those who " III have to pay these exac-
tions will also have to furnish the
larger part OF the money to purchase
the bonds for expenditures not provid.
Cd for my taxation and also as we may
be called u2on to loan to foreign gov
ernments engaged with us in waz
against Germany.
" our committee was profoundly i'm
pressed with the expediency and neces-
sity OF broadening and developing oul
system Of special taxation 20 az to pre-.
sent 1 scientific scheme. logically con-
sstructed; to. provide q superstructure
sufficiently strong and flexible to meet
not only our present but our future wal
needs, and 10 adjusted az to distribute
equitably the necessary burdens Of tax
alton and safeguard the activities Of
the nation by imposing no tax which
would not leave the tax payer rea-
sonably compensatory return from his
investment.
Basis of System.
Il The basis OF the system proposed By
your committee is the income and wal
profits taxes internal revenue taxes
upon whisky and tobacco, anu certain
moderate subsidiary levies in the ma
|ture OF excise taxes. Ine system pre-
scented 5is In form much the same as
that In the houSs, but It has, It is be.
|lieyed, been systematized, CO. o-ordinated
and made more consistent.
"As the result Of these changes It Il
estimated that about two-thirds OF the
additional revenue expected will come
from the income and war profits taxes
N fixing the rates upon incomes and