Daily capital journal. (Salem, Oregon) 1903-1919, 1917-08-14
WOULDCONSCR|PT
WEALTH TO RAISE
REVENUE FOR WAR
La Toilette, Gore and Thomas
Want "A Pay As You
Go" System
WOULD RAISE DOUBLE
AMOUNT PROVIDED FOR
He Is So SOicitOus For the
Down TrOdden Would Take
Tax from Pullman Berths

Washington, Aug. 14.--Conscription
of wealth to pay for the war and exemp-
tion of the earnings of the nations
workers are urged in report to the
senate today by three members of the
finance committee who disagree with
the rvenue raising methods proposed in
the pending $2,O06,97O,0O0 war tax bill.
The report, signed by Senators La
Toilette, Gore and Thomas, of Colorado,
was presented by LaFollette when the
senate resumed discussion of the bill.
The minority asserts that the sum
the committee bill proposes to raise is
only half enough to meet governmental
needs for the present fiscal year.
In addition to the $5,917878,347
which, quoting Secretary McAdoo, the
minority says is needed for govern
ment expenses, the report says that to
take care of loans to the allies and in
terest on bond issues, this country must
raise more than $13,000,00O,000 this
year.
The committee bill, says the minority,
has ignored McAdoo's estimate and
would leave the country without a sound
policy for financing the war,
Shys at Bond Issues.
HWhile this bill aud the majority
report are silent on bond issues" OBJ
serves the minority report, "it is per-
fectly obvious a bond issue to meet the
Billions of dollars left unprovided for
is in contemplation.
"Of all forms Of taxation, that in
volved in bond issues is the worst. The
people must redeem the bonds, and in
a short time the interest comes to equal
or excel the principal
whatever the total amount neces-
sary, it should be understood that in
the enactment of this revenue measure,
congress is fixing for the war period.
"We claim TO have profited by the
military experience of other warning
countries, particularly Great Britain,
and have adopted the policy of draft
ing men from the very start. Why then
should we not profit by their financial
mistakes and draft wealth in the form
of taxation in the service of the coun-
try from the very starts
"The British income tax yielded for
the last fiscal year one billion dollars.
On that basis, similar income tax rates
in this country would yield about two
and half billion.
Wants 80 Per Cent Tax.
"From two sources, the war profits
tax and the income tax there can be
raised without submitting the country
to serious financial strain, more than
double the amount raised by the com
mittee bill''
The minority points out that Great
Britain is now taxing war profits eighty
percent while the committee bill, in its
graded scale, gots no higher than flf-
ty percent. Amendment to the commit
tee bill to bring the war profits tax
figure up to IS or so per cent, will DO
submitted by LaFOllette.
He will also introduce amendments
greatly increasing the income tax sehed-
ules and will seek to strike out OF the
committee hill taxes on tea, coffee,
sugar, pullman berths, increase in the
letter postage and other rates which
directly hit the consumer.
The amendment, LaFollette said, will
force the steel corporation to give the
government a much larger share of its
1915 war profits of 1907, ,945,953, than
the pending bill. Under the committee
bin. the war profits tax would be $76,-
726,472.
The Standard Oil company, LaFol-
lette said. would have to pay but So,-
e65, $50, of its 1916 profits under tho
pending bill.
If the minority amendments are not
adopted, LaFollette win present a com
riote snbstitpte for the committee 5 bill