Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-05-25
FINANCE COMMITTEE BEGINS
WORK OF REpRAFrlNo
REVENUE MEASURE.
CUTS DOWN LEVY ON
EXCESS BUSINESS PROFITS
Also Decides to Eliminate Increase in
Postal Rates and Substitute Therefor
Tax Of 2 Per Cent on All Newspaper
Magazine and Billboard Advertising
hot Fight Impends in Senate.

Washington, May 25-The senate
finance committee today began radi-
cal revision of the house bill hvying
$780, 1000. 900 war taxes.
bill made by the committee :, today
were:
The tax of 1S per cent on excess bus
mess profits was modified so as to APP
ply only to profits attributable to the
commercial demands created by the
war.
The house retroactive tax on incomes
for 1915 was eliminated.
The increase of the postage rate on
newspapers and other periodicals was
eliminated and in lieu thereof the COM
mittee decided to impose a tax prob
ably of per cent on all newspaper,
magazine. billboard. and other advertis-
ing.
Other Possible Changes.
Other changes seriously contemplated
are:
Reduction of the total yield OF the
taxes. provided 10 approximately ST.
000,00O.00O and provision for raising
the remaining $500. 100000 by additional
issues of bonds.
Increases in the tariff on specified
classes of imported articles. in accord
ance with recommendations made by
the new tariff board.
Hot Senate Fight Inpends.
The senate is to be the scene Of a
legislative battle of intensity over the
war taxes. The measure passed by the
house Is decidedly unpopular and the
senate is now the target of objections
from all parts of the country--eScept
the south--to the scheme Of war finan-
cling devised by the southern democrats
who control the house.
Ii was learned today that the senate
finance committee has been particu-
larry impressed by the warnings that
the heavy volume of taxes imposed by
the house bill generally and the ex-
jure business and halt prosperity.
New Business Tax Basis.
a majority of the committee early
manifested disposition to adopt DIFF
ferent basis for the taxation Of busi-
ness and there IL strong sentiment for
reducing the tax levy generally and
increasing the amount Of revenue de-
rived from bonds.
England and Germany tax the differ
ence between profits in war time and
the average profits for period OF
years prior to the war. The house
on ways and means refused
to adopt this plan. but the senate COM
mittee has adopted the principle and Is
May Strike Averages.
IT is probable that peace profits OF
business concern will be determined by
an average of It's net earnings
during period of three or five years
preceding the war.
Then the difference between the net
earnings now and the average during
the preceding period would be taxed
heavily as war profits.
In the discussion OF this question in
the committee several senators taised
the objection that inasmuch as there
was business depression Immediately
preceding the war the peace profits
average would be unduly low and the
resultant war profits undU1y large. They
therefore have urged that the commit
tee make up the peace period from one
or two years before and one or two
years after the war began.
Some Burden For Future.
Many members are in favor of reduc-
ing the total tax levy to s1.250, 900. 600.
and some would cut even lower. They
contend that future generations should
bear fair share Of the burden.
Much attention is also being paid to
the argument Of the delegation from
the Chicago Association ofsCommerce
that II the tax levy this yehr- were kept
within $1,000, 100000 greater amount
could be exacted next year without
straining the business structure.
Birth Of Tammany.
Tammany is 1877 years old. On May