Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-09-06
COMMITTEE DRAFT
ADOPTED, 72 TO 7
High-Tax Advocates Fail to Sc
cure Adoption of Single
Amendment.
BITTER SENATE FIGHT ENDS
Bill Now Totals $2,522,0 900, 900,
Near Which Figure It Is Ex-
pected to Remain.
IBy Associated Press.1

"ASflNIION, september 5.-The
Senate's bitter fight over war profits
taxation virtually ended late to-day
with adoption OF the Finance Com
mittee's compromise provisions for a
total levy of s1.2ss.ooo.ooo. or about
one-third Of this years war and nor
NAL excess profits.
This is an increase of $1,000, ,ooo, 900
over present taxes. The high-tax ad-
single amendment.
The vote on adoption Of the Finance
Committees draft was 72 to Z. The
seven were Bankhead. Borah, Gronna.
Johnson tCall'ornia). La Toilette. I'm
derwoud and Vardaman
An amendment by Senator Hollis,
prup .sng to raise s4o0.oo0.000 more
from war profits than the bill pro-
vides by substituting his rates grad
uated from 20 to 20 per cent, was re-
jected by the Senate. SIS to "a
Another amendment by Senator La
Toilette. proposing to levy $1,505. .oo0,-
600. an increase of about 100000 900.
on war profits by increased rates grad
uated from IL to rs per cent. also was
voted down. Sc to 23
JOHNSON AMENDMENTS
DECISIVELY REJECTED
An amendment by Senator johnson
California; to raise the bills two
highest rates on war profits from so
TO SO, and from so to 20 per cent, re-
spectively. was rejected. So to 2S An
other by the California Senator to
raise the maximum rate from GO to 70
per cent also was defeated. 81 to 20.
Senator Bankhead's substitute for
the war profits section, estimated by
Its advocates to raise about the Same
revenue, but levying on all classes of
eHcsas profits. and based on actual in
vested capital with an per cent e1-
emption. also was rejected. s7 to 9.
Action on the war profits section, the
largest revenue-producing provision.
was taken technically in committee of
the whoie,, and Is subject to fnal re-
View later. To-day's decisive rout of
the hfgh-tax element, however. NAV
prevent further efforts along this line.
and Senate leaders say it forecasts de-
feat for the fight beginning to-mor-
row for heavier income taxes.
with adoption of the Finance Com
mittee's war-profits provisions in
creased by the committee from s562.-
100000 to $1,000. 100000 after the high
tax Senator'S began their fght-the
bill totals $2.522. 900. near which
figure 1t is expected to remain MANY
Senators. however, predict ultimate
elimination Of consumption taxes, aE-
Eregating $4,000. 900; second d-class mail
increases. of sl2.600.o0o; freight taxes,
OF s77.soo.0oo. and stamp taxes on par.
cel-post packages. estimated to yield
about SS,oo0.0o0.
20 VOTES is LARGEST MUSTER
OF HiGH-TAX ADVOCATES
In the contest between those advo-
eating and opposing higher taxation
of war profits. which has approached
high levels of Senate dissension, the
largest muster Of the hiCh-tax group
was twenty-nine votes. This came to-
day on an amendment of Senator John
son. OF California, to increase the max
imum graduated rate from 60 to 70
per cent. Supporting 1t were:
Observation-Disclosures, Beckham. Brous-
sard. Chamberlain. Fletcher. Hollis.
Husting. Johnson (S. d., King. Kirby.
Mcclellan, Myers. Overman, Phelan.
Shafroth. Sheppard, Thompson. Tram
mcll and Vardaman-1s.
Republicans-Borah, Brady, Gronna.
Johnson tCaL), Jones (Wash.). Kenyon.
La Toilette. McNary. Norris and Suth-
erland-10.
Total-29.
AS now written into the bill. the war
profits section strikes out the House
provisions for an additional tax OF
$2Go.o0o,ooo and is substitute for the
present excess profits law, now yield
in S00e he
new provision is estimated at 1885,
100000
1t also extends the tax to ordinary,
per cent. in addition to excessive war
amounting to surtaxes, ranging from
2 to 60 per cent. The excess is based
upon the net income above $4,000 of
corporations. partnerships and individ-
uals in trade or business over the aver
age OF 1911. 1912 and 19l3-the pre-
war standard-with q minimum ex-
emption OF per cent OF actual in
vested capital and maximum exemp-
tion OF 10 per cert.
GRADUATED RATES WITH
ESTIMATED REVENUE
The graduated rates and their esti-
mated revenue yield follows
Twelve per cent on excess profits up
to Is per cent, $100,0S0, 900.
Sixteen per cent between Is and Is
per cent. $46.08o.00o.
Twenty per cent between 25 and so
per cent. sos, 100000.
Twenty-Five per cent between so and
rs per cent, $101 100000.
Thirty per cent between rs and 100
per cent. $sS.200,0o0.
Thirty-five per cent between 100 and
$50 per cent, $120,t50,0o0.
Forty per cent between 200 and $50
per cent, ss4.15o.o0o.
Fifty por cent between $50 and 500
per cent, $72,500.00
Sixty per cent on profits in excess OF
800 per cent. $462,940,000
Senator Simmons presented and the
Senate accepted provision exempting
trades and business carried on chiefly
CONTINUED on Ninth ParoO