The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-08-29
SLIGHT INCREASE
MADE IN PROFITS TAX
senate Finance Committee ButtreSses
War Revenue Measure Against
Radical Attacks.
3-CENT POSTAGE DEFEATED
Senate Wrcstics with Proposed Tax
on Publishers. But Decides Against
Ono Cent Increase on Letter Rate.

Washington, August 28.--In an eff
fort to buttress the war revenue bill
against the attacks made against 1t,
conservative" members OF the sem
ate finance committee this afternoon
decided to increase the war profits
tax in the bill by about $50. 100000.
The pressure brought by radicals"
in favor of an increase, has been ire
mendous Only today. Senator Borah
said he was in favor of raising three
billion dollars from war profits alone.
Last years war profits were about
three billion dollars" he said. 1T is
estimated that this year they will be
about four and half billion. I see
no reason why we could not have a
five billion dollar bill. with three bill
lion of this from war profits. I would
raise most of the remainder of the
bill from income taxes
Fair to Companies That Had Dull
Year,
The decision of the senate finance
committee was taken after a closed
session of more than an hour. 1t was
due largely to the influence of south
ern senator's that the change was
tmade, for they had objected that in
using certain pre-war years in de-
termining war profits, southern cot-
ton mills. subnormal business was not
considered.
AS 1t is the change agreed on to-
day will benefit corporations which
had hard years in the pre-war Pc
riod. The pending bill provides an
exemption of three per cent on war
profits But the committee decided
today to adopt n sliding scale of six
to ten per cent The corporations
with less profits will receive the high
er exemptions and vice-versa.
In some instances. under this
change. war profits NAV be taxed as
high as sixty per cent, which is a
maximum approaching the ideals de-
sired by the radicals Some of
these radicals" argue that as Eng
land has taxed 80 per cent, this coun-
try. which has more wealth. could
we'll afford to take at least that much.
England taxed forty per cent the
first year. sixty the second. now taxes
eighty and Bonar Law has spoken OF
ninety" said Senator Borah today.
we have had two fat years Of war
profits that will not even be taxed.
Surely we could stand eighty per
cent"
War Profits Not Reached Yet.
War pyofits was not reached to-
dav in the debate. Again the senate
tdIhtt ot Llle POSTAL rates by II
vote Of thirty-nine to twenty-nine.
the amendment to make letter post
age three, instead OF two cents. was
rejected This change cuts fifty
million dollars contemplated revenue
from the bill,
AS soon as this action was taken
debate was begun on the portion OF
the hill taxing second class mail mat
ter. Senator Hardwick, OF Georgia.
fought for an amendment that would
tax magazines and newspapers one
cent per pound on reading matter,
and run the cost of advertising mat
ter upon a zone system
In four wears his tax on the outer
zone would be twelve cents on ad-
vertising matter He had another
amendment which would make adver-
Using matter cost eight cents after
four years Senator McKellar Of
Tennessee. submitted a zone system,
also for newspa pers and magazine
postage Senator Weeks, OF Massa-
chusetts. urged eliminating all new
taxation on publishers from the bill
The four railway brotherhoods
wrote TO Senator Hollis. Of New
Hampshire. obtecting 10 the increase
in postal rates They said that the
changes would force them to pay
sl3 600 more for letter postage from
their offices and sls 900 more on their
official magazines