Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-05-24
MEASURE CALLING FOR RAISING
OF $1,000, 900 900 ADOPTED sY
LARGE MAJORITY.
SENATE EXPECTED TO
MAKE MANY CHANGES
House Permits Many Objectionable
Sections to BE Retained Knowing
Senate Will Revise and Rewrits
Them-Senate Leaders Known to
Favor Tax Reductions.


Washington, May 24.--The defective
and inequitable revenue bill, which
business thruout the country has
sharply denounced. passed the house
of representatives late yesterday by a
vote Of 329 to &c.
Every democrat voted for the meas
ure. So did 1l2 republicans. All the
negative votes were cast by republic
cans. Four members voted present"
They were republicans.
The overwhelming majority the bill
received ought not to be taken as evil
dcnce that the house desires it writ
ten in its present shape upon the stat
ute books. A motion to recommit the
dill for modification was beaten by a
vote of 246 to 161. This gives a better
idea of the sentiment in the lower
chamber. II the house had had the
power by its own action to make a
| revenue law it is certain that a meas
ure essentially different would have
been framed and passed.
But the members of the house knew
that the senate would rewrite prac-
tically every paragraph: that it would
lower the amount of taxes to be
raised: reduce the duties here and
raise them there; eliminate freak"
provisions and generally distribute the
taxation so that 1t viii bear more
euultably upon the people.
The senate finance committee in
tends to report to the senate, prob
ably within a few days. a bill based
on scientific principles. The Chicago
idea" Of reducing the amount to be
raised has won IN the committee.
It is estimated that the house bill
as It passed will raise $1,000 600. 900
500 100000 more than the ways and
ported the measure. This Is such a
staggering sum from business, has such
grave possibilities of doing irreparable
damage 20 the country and carries a
threat Of failure OF the Liberty Loan,
as we'll as other bond issues OF the flu
ture, that the senate committee Will not
agree to anything Of the kind
Favor $1,125, 100000 Bill.
Senators Penrose. Lodge and other
members Of the committee believe that
about billion and quarter should
be the maximum OF taxes levied.
The administration is pressing for
the full amount Of the house bill. II
Will not get It. Probably a compro-
mise will be reached on S1,4oo ,o00. 900.
OF course, the lower sum means
to- 30 No
age The best thing, however. about
the senate bill will be that It will as
sure a fairer distribution OF the taxa
ton
1t is not possible to say at this mo-
nent what the exact features Of the
senate bill viii be. The committee has
not yet taken a vote. The actuaries
have been at work estimating the
amounts which will be raised if
various proposals should be adopted.
The reports of these experts are be-
ing considered by the members OF the
committee, who are discussing what
should or what should not be done.
See Excess Tax Change.
1t is certain that the excess profits
tax as set forth in the house bill will
be radically changed Even the sys-
tenn upon which it is based will be
altered.
The income tax section Of the house
bill will not stand. Congressman Hull
OF Tennessee, in a speech in the house,
declared it could not possibly work.
The senate finance committee will pre-
pare a section Of its own and will have
| the advice Of Mr.. Hull, who is a rec
ognized income tax expert.
The senate committee does not in
tend 10 dislocate business by arbi-
trarily increasing customs duties 10
per cent to take effect at once. The
customs section Of the bill will be so
arranged as to encourage rather than
disturb business. The committee also
Is decidedly opposed to the retroactive
feature OF the house bill, particularly
as applied to excess profits and in
comes. Such provisions, 1t is declared
will be eliminated.
1t Is highly probable that the bill
as reported by the finance committee
Will be modified in many respects on
the floor of the senate. Democratic
leaders OF that body say that it will
be impossible to rush the measure
IL
take place Practically every senator
will have an amendment or amend
ments which he will desire to discuss.
This will take time.
There is no intention to observe par
tisanship in the disposition OF the
measure. The republican members Of
the finance committee are joining with
the democratic members in fashionine
the bill. Senator Simmons hopes to be.
able to present to the senate proposal
which will have the support Of every
member of the committee Should t!1i.
be done, 1t will be easier to secure
passage.
Expect Compromises.
When the bill Is passed by the senate
1t will be q substitute for the house
bill. This viii Ilecessitate a conference.
The representatives OF the senate and
house will require some days to adjust
the tremendous differences that Will
exist. The senate will yield little. The
house must Yield much. The president
will be consulted 80 that he will give
his support to the conference report.
Backed by him the report undou btedly
| will be adopted.
Thus many members Of the house,
| who. voted for the ways and means
| committee bill today in order to expe-
dite the enactment OF the legislation
will be found voting In the end for an
entirely different measure.
Retain Zone Rate.
The zone rate OF taxation on news
papers and magazines was retained in
the bill by the house thru a record
1 = n Y.