New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-07
Devised Measure Provides
Sweeping Changes in
Levies on Incomes
sl35, 1000, 900 More
Than First Planned
New Schedule Hits Cor.
poration Earnings
Passage in September

WASHINGTON, Aug. 6.-The war
,svsnue bill as finally revised by the
Senate Finance Committee, was re-
,orted 10 the Senate to-day by Chair
nan Simmons. II will raise, according
70 the estimates, ,OO5.97o, 1000. AS the
bin passed the House it was estimated
% raise S1,S67, 100000.
This is the second time that the bill
IA, been reported to the Senate. II
was withdrawn previously by Chairman
Simmons when the Administration an
nounced that several billion dollars
more would be required for war pur-
poses during the present fiscal year.
The committee, in its final revision,
has increased the total which the bill
will raise TO over two billion dollars,
increasing and adding to the taxes i'm
posed.
The Senate committee has given
many weeks Of care to the draft of the
measure. its effort being to establish
and develop system of special taxa
ton which may be used as basis for
further taxation if the needs of the
war require 1t.
Party Leaders Agree
The report is concurred in by Re-
publican members of the committee, as
we'll as Democrats. and every effort
will be made to put the bill through
the Senate at the earliest possible date.
Senator La Toilette gave notice that a
minority report would be filed. 1t is
expected that the Democratic Senators,
Gore and Thomas. members of the
committee, would join with him in the
minority report, or would file one of
their own.
The report submitted by Chairman
Simmons defends the elimination OF
the so-called Lenroot surtaXes on in
zones of over $4,000 added in the
House. designed TO raise $4,000, 900, as
allows:
Tax on Corporations
Tn view of tie fact that in addition
10 the large increase in the normal tax
and surtaxes upon incomes, the bill
provides for a large increase in the
war profits tax Of corporations and
partnerships and includes individuals
in the scope of that tax, and in view
of the probability that It will be nee
essary hereafter to further increase
these rates in order TO provide for in
creased war expenditures, your COM
mittee believes that for the present it
Is inRdvisable 70 increase the surtax
rates beyond those proposed in the
original House bill.
"We must face the possibility, even
the probability the report stated, "of
even higher taxes than are now pro-
posed in this country, and we must
adjust our system so that it will work
satisfactorily even under increased
rates. Your committee has not been
able TO fnd any satisfactory reason
why individuals engaged in trade and
business should not be subject 10 this
tax (war profts) as well as corpora
ions and partnerships"
Drop Tax on Light
The House per cent taxes upon
electricity. gas and local telephone
service were eliminated because "it
appeared TO the committee that this tax
would fall with very great severity
upon the people of moderate means as
well as the poorest classes"
Declaring that the new tax on cab
AIels ana retention OF taxes on OLneT
amusement admissions is justifsblc,
the report said the tax on moving pict-
ere theatres charging less than %
cents had been eliminated, because "the
moving picture show has become a
national institution. IL possesses
many valuable educational features.
They are largely patronized by people
OF small means"
How Incomes Fare
OF course, the income tax provisions
are Of the greatest general interest. A
comparison Of the proposed levy as
against the provisions Of the old law
follows:
Present Committee
law. bill.
A.sas Of family. $4,000 $1,000
VtheT persons ........... 5000 700
for each minor dependent
N"i1 ssss.... .......... -- ZVU
Per ct Per ct.
Normal rate e................ 2
Aaoitonal tax rate Of amount
~ income in excess OF $1,000
and not % $500 ........... 0 l
100 and not Of $4,000. ...... 0 2