The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1917-08-10
Chairman Of the Senate Finance
Committee Opens the Debate on
Bill Calculated TO Raise Revenue
to Amount Of $1,000. $4,000.
INCOME, WAR PROFITS
ARE HEAVILY TAXED
The Intention Is TO Do Nc Unjust
ice to the Rich or Poor and Not
Injure the Sources From Which
Future Levies Must Come.
BY Associated Press.

By Associated Press.
Washington Aug. I0.--In open
ing senate debate on the $2,0O6,-
10000 war tax bill today, Senator
Simmons. chairman Of the finance
committee, declared the commit
tee = purpose in revising the house
bill was to raise sufficient federal
revenue for extra war expenses
without injustice TO rich or poor.
and without injuring sources from
which the new and future taxes
must come.
The bill, said Senator Simmons,
proposes to raise larger proper
ton of war revenues by direct tax
alton and less by bonds, distribut-
ing the burden between the pres
ent and future generations. He
pointed ont that nearly 81, 400, Co.,
coo Of the new war taxes are to be
obtained from incomes and war
profits alone, with over 500, ,000,-
600 more from intoxicants.
Before the war" continued
Senator Simmons, "our total ex-
penditures were, between $780,
10000 and $500, ,0O0, 600. exclusive
of postal costs. II is evident that
the expenditures during this fiscal
lycar will reach something like ten
billion dollars. These conditions
Suggest incomes aud war profits ss
the chief and just source Of rev.
,enue to defray expenses OF the
war. Apparently the house did not
take this view. As the war profits
for 1916 exceed thirty hundred
! millions of dollars, the holse levy
of $200,0O0,000 from war excess
profits in the bill, estimated 20
raise 81 500, 900, 900, does not meet
the manifest equities of the situa-
tion. Your committee thought
that the equities of the situation
required at least one-half of the
sum proposed to be raised should
be drawn from incomes and ex-
cess profits" p"
Is Corporations Hsrt Hit.
Senator simmons submitted statis-
tics said to have been complied BY
I, H. T. Morgan a. Company. showing
that forty five great corporations
alone will pay. under the proposed
= committee revision. war profits taxes
tof s2S9.97I O0O against only s51.556,-
!, OOo proposed under the house bill.
Senator Simmons declared that the
I, committee proposes q specific war
profits and not an excess profits taN.
Tho house standard Is wholly unsai-
:sfact"ry. artificial, and arbitrary" he
said.
a Reasons for increasing corporation
- income taxes. senator simmons gave
q as follows.
The necessity Tor increased revenue
a on account OF the large deficiency cs
n Inmates for the army presented the
IA SCI retary OF the treasury after the
I bill was recommitted At my requctt
n on account of tie Smoot amendment
q 10 the food control bill
The proposed tax on corporations
u undivided surplus. he declared,
r would more nearly balance the reln
p tive conditions as between corpcr
h nuons. partnerships ana individual
10 with respect 10 income sur,axes
ifktfulhE tliillhdAlnN OF Ant NUS
y general ten per cent advalorem tari'.
10 levy. Mr. simmons said
y The People Protested
A. White tho government would rea
<. ia from these tariff levies s20e o0o.
Al 0c0 the domesiic producers uf thr
M country would as q result collect ou
n. Of the people an amount three or foni
IN times greater than the amount whlci
n Il IL estimated the government viii re
IN ceive from the tax"
h. The reduced tobacco taxes he said
would raise the same revenue as IN
ID house rates without burdening ethe
es producers or consumers Liquo
IN rates he added we're rsised heeaus'
in the food coEtrol laws provisions stop
n tC.stinursi o. Page Tsso)
Britishers. As yet ths Americans d
sh not understand Coeknes speech vel
he aud the Cockneys themselves haN
all some little trouble iH underestimate
re the idioms ~ the men from Chieag
ne and New York American and Brit
m lsh FLAGS float over the camp Iron
he tho same pole and. TO quote the al
en- jutant OF one OF the battaiions. the
mix weii--both red. white and blus--
,et the best In the world and the mex
ne hest