Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-09-02
SENATE KILLS HIGH
WAR PROFITS TAX
Smothers Johnson Amendment
for Levy of 80 Per Cent
Total by Vote Of 81 to II.
NEW La Toilette MOVE

The Senate, by a vote of 81 to II. yes
ment offered by Senator Johnson Of
California increasing the tax on war
profits provided In ths war revenue
bill to 73 per cent. which with existing
law would bring this tax to so per cent.
This was the first test Of strength
between the so-called "maximalists"
and the conservatives, or supporters
of the Senate finance committee. After
the decisive vote on the johnson
amendment it was confidently predict
ed that the Senate committee COM
promise amendment on war and excesa
profits taxes would be retained in the
bill without modification.
Senators who have insisted upon
higher rates OF taxation on war profits.
however. claimed a victory, saying that
they had forced the Senate finance
committee to bring in a compromise
amendment which will raise some $780,
900. 900 more from war profits and ex-
cess profits than would have been
taken under the original bill.
Amendment by La Toilette.
Immediately after the defeat of SEN
ator Johnson's amendment. Senator La
Toilette offered an amendment pro-
posing a total war profits tax of rs
per cent. He made vigorous three
hour speech in its support but did not
conclude, and the Senate recessed until
tomorrow, prepared to work through
the holiday.
Although determined to continue the
fight next week for higher rates. many
ly conceded defeat. A few thought 1t
possible they could carry an amend
ment for a nat tax of 40 to SO per cent.
but others admitted the committee pro-
pointment at the small vote for Sena-
tor Johnson's so per cent amendment
was privately expressed by the high
tax leaders, and some oeIleved that
above 35 or 40. even for the minimum
increase provisions pending.
Voted for High Taxes.
Senators voting for the high taxes
were:
Hollis. Husting. Johnson of California.
Johnson of South Dakota. Jones.
washington; Kenyon. Kirby. La Fol-
lette, McNary. Norris. Thompson and
senator Johnson opened the fight
with an impassioned plea for increas-
ing tax levies on swollen fortunes.
He advocated>taking the largest per-
centage possible of war prohts, leav-
ing normal peace time profits untouche.
If not taxed this year. the California
senator said. millions would go un-
taxed.
I'VE do not hesitate to break hearts.
IN break bodies" he said. but we hesi-
tate to take prof1ts-made out OF our
blood and bone"
Senator La Toilette said at least 81
900. .OOO, 900 of distinctive war pronts
should be taken by the government,
&c nf he
neriod would be left undisturbed and
normal peace time profits as well.
Make Spirited Replies.
Both senator's declared that the
finance committee leaders, in bringing
in their compromise amendments to
add s5oo.ooo.ooo to the war profits sec &C.,
sentiment in the Senate and through
out the country for higher taxation.
Chairman Simmons and Senators Lodge
and Penrose made spirited explanatory
replies, to the effect that the commit
tee had not changed it's provisions for
war profits taxation. but had acceded
to the demand for increases by provtd-
ing for further taxation OF ordinary
excess. including peace-period profits.
Senator La Toilette in his speech on
his amendments for a maximum of 70
per cent graded down to AZ per cent.
declared that industry has made "in-
ordinate and unheard-of profits out OF
the war" He continued
"It would be a reproach to our pres
ent civilization If we failed to prevent
40 far as we have the power. one class
of our citizens, comparatively small.
from becoming enormously rich out Of
this war, while the other. and much
larger class, was impoverished by the
war, although we cannot prevent the
Injustice and the inequality Of the bur-
dens which every war causes to the
people of country engaged in 1t.
"cannot Equalise Burdens"
I'VE cannot in. this or any other reve.
nue. bill which we may devise even ap.