Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-08-14
M'CUMBER AIDS
FIGHT FOR THE |
WAR TAX BILL
Should be Speedily Enacted.
He Said, 50 That Business
Can Adjust Itself. i

Washington. Aug. 14-Generai de-
bate in the senate on the war tax bill
10 expected to close today. Chair
Simmons OF the finance commit
two more senators had signihed their
intention Of speaking and that he
would move to take UP the commit
tee amendments as soon as they have
been heard.
Senators Penrose and Mccumber.
republican members of the committees
spoke. at length during the day in sup:
had been revised in Q non-partisau
spirit.
Penrose's Address.
Senator Penrose said that while he
had voted against the revenue meas
ures since the present administration
came into power because they marked
q departure in the fiscal policy OF the
the tariff as the source Of revenue and
.resorting to direct taxation, the situa-
ton Is different now and the Amer.
lean government has eve hesitated
to raise revenue by direct taxation
and loans when required to do 50 by
q state Of war. The payer must
bear in mind. he said, that the bill Is
temporary in operation and when the
var is rel the whole tax system OF
the country will, be revised.
After the close Of the war, senatort
Penrose said. the United Statets more
than eve would need a high priced
tariff to. maintain It's Industrial pros-e
perity.
Wal Of -Four Years.
Senator McCumber predicted q war
Of at least four years and expenditure
Of $40, 900, 900, 900. He said the bill
was Just the beginning Of the taxes
which must be levied. but declared
that the future generations should
pay the greater part Of the cost as the
present one will furnish the men ana
supply them with the materials which
will be necessary to crush the Ger
mar autocracy.
During the debate Senator Reed
made another attack upon Herbert g.
Hoover, asserting that the food adj
ministrator's statement Of his plan TO
control wheat. -four and bread was
the decree of a dictator.
McCumber's Address. i
Senator McCumber declared that
the whole tax scheme contemplated 9
period that will W four years and
that unless the war should end sud-
denly, the United States would have to
expend 1000, 000, 900 in that time
He said that America might have toS
put Ave million men In the field and
he believed their support and sacrifcoi
SnOulQ De enough LOT THIS B0H0TdIoAe
adding that ''the war debt should be
| borne by our e~mancipated children"
Asserting that 81. 600, 900, 900 would
have been enough to raise by taxation
at this time. the senator said he bal-j
ance should be paid out Of h sale
Of bonds.
Profits for Bonds.
i Pointing out that the business
profits must not only furnish all taxes
but the money to absorb the bonds.
He said he wanted to see the poorer
| class and business Of moderate means
make suficient profits to permit them
to purchase most OF the government
bonds and leave the large capital to
continue in business and respond IN
taxes for the support of the govern
ment. Taking fifty per cent OF In
come taxes, he said, Is likely to res
| suit in withdrawal Of capital from
business and its investment solely in
government bonds, as the average,
business only pays seven per cent net,
and by SO doing they would escape
all further taxes and responsibility OF,
business. -
which escape the watchful eye OF the
administration and earn excessive
profits would be caught In the revenue
draenet thrown out by the pencil
ling bila. The bill should be speedily
enacted, he said, so that business
could adjust itself accordingly.
HIA