Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-07-02
WAR TAX BILL
Incomes and Excess S
Profits Hardest Hit
Virtually Rewrite and Reduce
Bill to S1,652,170,000

Washington, July 1.-Revision of the
Sl800O00, 900 war tax bill passed by
the House five weeks ago was COM
pleted Saturday by the Senate finance
committee The measure virtually was
rewritten and reduced to $1,652,l7O,-
600 with no authorization Of addition
al bonds The final draft was sent to
the printer Saturday night and will
be reported to the Senate by Chalr-
man Simmons early next week.
Incomes and excess profits will bear
about two-thirds of the new tax bur-
den under the revised bill-about a
half billion dollars each-with large
share of the remainder secured from
liquors and tobacco. Many house
taxes were entirely eliminated by the
committee and others were added.
Increase Taxes on Profits
Radical increases of taxes on war
excess profits on corporations, partner
ships and individuals. decided upon To-
day enabled the committee to dispense
with the suggestion made OF addltiondi
bond issues of from S5OO,O0O,ooo 10 81
600, 100000 Senator Stone Withdrew
an amendment for soO0ooo.ooo Is
sue. While the bill falls short by
about 5000, 900, 900 of meeting the treas
urv estimates of war expenses next
wear. the committee decided that by
issuing Sl35,000,000 Of authorized put
unsold Panama Canal bonds the ex-
penses can be met until Congress re-
cunvenes in December.
As finally drafted the much debated
publishers tax section proposes nNe
per cent. tax upon publishers pfon's
over $4,000. Welding s7,500,000 revenue
and an increase of a quarter of cent
a pound in second class postage rates.
yielding 100000.
Excess profits due to the war under
the revised bill would bear S13o,ooo-
600 in taxes graduated from l. 10 81
per cent, according to the proportion
of excess This is an increase OF Sooo,-
100000 over such taxes under the pres
ent law, of which repeal is proposed
and $500, OO0, 900 more than was pro-
posed by the House bill
From income taxes s532 10000 would 10
raised, s660OO,O0O less than the House pro
vided-the decrease being made entirely
,,nop incomes of $4,000 annually ana
ahoye-with the committee approving the
House plan of lowering income tax ex-
emptfons to $1,000 for single persons. sa'ol
for married persons. additional normal
taxes Of per cent. upon incomes up to
5000, and surfaces graduated from 10
"a per cent upon larger incomes.
The committee also changed the plan
~ collecting income taxes from that OF
collection at the source to 'lnformauoh
at the source to accomplish direct pay
ment.
A comparison of the estimated revenue
10 he gained from other sources under the
revised bill and the House bill. respec-
lively, follows
Comparison Of Revenues
Liquors, sl55.COooc0 against sl5l,0o.ooe'
tobacco. s56,SAo.ooo against Sos'3"'"o'
freight transportation, NI,9ooo"' I'M
changed passenger transportation 49,
$4,000 against $4,000. coo: automobiles $40
n,lOco against s6S.oto.ooo payable under
the revised hill by pleasure car owners
an, not by manufacturers); amusement
admissions so3,N.p0O0 against so.Wn"n'
and first class mail S5o,0ooooo against So
caANn (bv retaining the one cent increase
FOR first class mail and striking out the
increase upon postcards.
tie committee struck out entirely the
House 10 per cent. general tariff tax upon
virtually all imports. estimated to raise
sc,a 20 Oa0 1t substituted consumption
taxes totaling $50. 00o.C0o and bearing more
directly upon consumers. of half cent
round on sugar. two cents on correct nNe
ccnts on tea and three cents on cereals
and substitutes.
All S,anish war stamp taxes would De
Virtually reimposed under the OIL. the
committee adding new tax of one cent
Zach an bank checks over S.. From stamp
-axes s3s 600 Gee revenue was proposed
u,der the House bill and s30ooo,Oco under
the committee revision.
Other changes in the revised bill IN
clude prohibitive tax to stop manu-
f2cture of distilled beverages. while
taxes on other intoxicants are virtually
t,ouhled: elimination of house taxes OF
100000 on heritances ana sloe'ooo'
ZOO retroactive taxes upon 1916 IN
comes, repeal of the special IL IL per
cent. tax on war munitions; repeal OF
The "draw hack" re-eXport allowance
given sugar refiners: extension to par
eel post packages of tax OF one cent.
for each o5 cents paid for express
transportation: elimination OF mouse
taxes on consumers electric lights.
power and gas bills, all insurance. jew
elry. club dues. tires and tubes, musi-
cal instruments, motion picture films
and chewing gum.
House levies of five per cent. upon
gross sales of many manufactures were
stricken out entirely and taxes on pa
tent medicine. perfumery. cosmetics.
Pullman accommodations and soft
drinks greatly reduced.
Believing that . compromise on pro-
hibition legislation will not stop con-