Evening journal., 1917-05-17
HOUSE increases
S(JRTAX ON incomes
Ten Per Cent on Amounts
Between $4,000 and
100000
OTHER CHANGES
ARE EXPECTED

WASHINGTON. May 17-As the
House yesterday began discussion Of
the war tax revenue bill under the
hye-minute rule, evidence appeared
that the administration Is weakening
upon the radicalism emphasized in
the bill. One administration leader
after q conference at the Treasury
Department, reported that business
had rev0lted at IT'S features and the
loans were not being purchased rapid.
ly because of the feeling that bust
ness will be paralyzed by the ill-dl-
gested features of the Sl,SO0, O0O. 900
tax bill now approaching final pas.
sage.
This situation was reported 10 the
House leaders with the further infor.
nation that the administration Is not
so eager TO see the retroactive in.
come tax, the tariff schedules and the
zone system imposed as at the out.
set, when It had appeared that bust.
ness men would accept anything un.
der the guise Of patriotism.
While the Administrations changed
program may not be made manifest
IN the House. yet every leading mem.
Der of the majority knows that the
enactment Of the pending bill is mere.
" perfunctory, and that the real writ
Ing of the bill will be done in the
Senate.
Upon the best information IL is be.
lieved these changes win be made in the
bile
The retroactive income tax payment
OF one-third the amount paid on in.
comes for 1910 will be eliminated.
The change in the tariff schedules will
be eliminated or 90 into effect next year
The zone system for second class mat.
ter will be eliminated and fiat two
Gems rate imposed, which is an increase
OF one cent a pound on this matter.
Representative Graham, OF philadel.
phia, will lead the fight for the minority
against the retroactive income tax pro.
vision and direct the struggle for the
abandonment of the zone system. Mr..
Grahem has made a long study Of Sec
ond class matter and will attempt TO
show that the government itself Is in
efficient in the conduct of the postofiioe
Department. and that the system should
be reorganized as soon as possible. He
said he objected 60 making the news
papers and magazines a special target
for attack by certain congressman who
held the opinion that the newspapers
had thrown the country into war. Thes,
men are pro-German in their point OF
view. and when they can no Longer
preach against war and thereby civ,
comfort to Germany they have assume,
another attitude.
Representative Moore. who * now il
second place on the minority of In
Ways and Means Committee, win ofFe
an amendment to eliminate the zon
section and substitute therefor a fiat in
crease Of one cent a pound.
Income Surtax Increased.
The frs. change in the bill wai
made by the House when IL voted Il
increase the surtax on incomes be.
tween $40 600 and 500 600 from Ia
10 per cen,. This amendment Of.
Tered by Representative Lenroot Re.
publican OF Wisconsin was adopted
% to 81 It is subject to final APP
proval or rejection by a roilcall vote
before he tax bin is passed
In Offering the amendment Mr.. Len
root protested against the generous
consumption taxes" OF the bin as re-
ported by the Ways and Means COM
mittee. BY raising the surtax on in.
comes between $4,000 and $50 600
Mr.. Lenroot said It would be pos
sible to strike from tho bill the taxes
on electric power for heat and light
and probably the levy on fire. ght re.
ceipts
Represen alive Sherley. a Kentuck,
Democrat led an unsuccessful hgh
70 increase the surtax on incomes be
tween $4,000 and $500 from / to
per cent This amendment was re
iected on a viva voce vote Mr.
Sherley said the income tax shout,
be fully utilized as a revenue pro
ducer and higher income tax rate
would be preferable TO some OF tn
taxes lev ed by the bill
81 am in favor of raising as mucl
money as possible from incomes with
out doing the unfair thing" said Nh
Sherley. 81 should be glad 20 Sc
new provisions In the bill whereof
we would tax by increased amount
the incmose above 81 900 600.
Il do not think there Is any grea
harm going to come by excess take
On incomes above 100000 or $1,000
BOO I am not very much concern
ed about the tragedy that will com
to the lives OF men whose income
are OF that size. My fourteen year
service here relieves me from an
charge Of demagoguery or appealin
20 the poor at the expense of the ricl
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