Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-08-14
MINORITY REPORT
MADE ON WAR TAX
Presented by Senator La Fol-
Iette, Messrs. Thomas and
Gore Concurring.
BURDEN ON BIG INCOMES

A minority report of the Senate
finance committee on the war tax bill
was presented to the Senate today by
Senator La Toilette. with the concur
renee Of Senators Gore and Thomas,
recommending that war profts and big
incomes be utilized as the prtresp41
sources Of taxation in providing Tor
the country's war needs.
Contrary to expectations. Senator
La Toilette did not present substi-
tute for the pending war tax bill. He
announced. however. that. unless the
Senate adopted amendments to be Of
fered by himself and his associates. a
substitute would be offered
The minority report charges that tne
hill as revised by the majority makes
but palpably inadequate provision for
raising of revenue needed for financing
the war through the next nscal year.
and that the onus OF taxation mas beeh
placed upon those least able TO pear
It."
England has taxed her war profits
so per cent without impairing her
great industries. declared senator La
EolIette Instead, her wealthy classes
.were never in receipt OF larger in
comes nor were her larger business
concerns more fourishing. Heavy
taxes, he said. could be levied on
A ms
fear of affecting capital or Gripping
Prom the income tax and the war
profits tax," states the report, there
can be raised. without suo1ectlns tne
country to serious financial strain and
without depriving the wealthy OF even
the luxuries of life, more than double
the amount proposed in the pending
bill"
II Congress were to adopt the British
rate of so per cent on war profits. SEN
ator La Toilette said. more than two
and a quarter billions OF dollars would
be realized in single year from TINS
source. Seventy per cent would yield
sSO2l .0oO. 900, so per cent. 81. 80 5000 !:
20 ner cent. s1,433. 10000: 40 per cent.
81. 155. 100. 900. and 30 per cent: $685.
100000. according to estimates furnish-
ed bv the Treasury Department
Extent of U. S. Financing.
.Eotbing that this country or any
oo,ntrv has ever previously undertak-
on in the way of war financing he de-
.,or.a compares with the obligations
NC are assuming. We have not mere
ly to finance one country We mus. 70
a large extent finance at ieasl HFe Ut
six other countries.
IL onnarison with the average year
" wage of S700 earned by the Ameri-
can laboring man. senator Ia oiie,.e
nrasented statistics indicating that the
percentage OF war p,o..S po.dr or.1 no en-
nany was 1.400 per cent. Bethlehem
Steel. 300 per cent: Anaconda copper,
too per cent: American Beet sugar, 2"o
per cent; Armour a 60; S9o Per a.o
aand American Hide and Leather, SoO
pII urging that the income tax scale
he Increased to tighten the burden
borra bv the laboring classes. hgures
wsre cited indicating that wages have
increased only IS per cent. while the
necessaries of life have advanced % per
cent. >, .;a Cav,
tor Ia toilette. ito tax the everyday
naossities Of the average man or woman
| to nav the expenses of the war IN addi-
,ion to commanding their service and the
lives of many of them and their cniidren. rd
| so long as the swollen and abnormal war
| nrofts are not taken-profifs which the
war has created and which will disap-
| near as soon as the war ends.
.Eyery dollar OF the above profits can
be taken and still the enormous peace
time nroflts of these and other great cor
norations will not be touched. Every
pptockholder would still receive his hand
some peace-ttme DIVIDEND every omcer
his princely salary.
| ne In support of the minority contention
that the majority estimates are grossly
insufficient to carry the government
| throurh the next fiscal year. Senator La
En,Iette declared the estimated expendi-
| ,nres proba bly, would exceed the estimated
receipts by ss.4Q2 3o7 600. without taking
| into consideration the additiona, billions
| ma iority report provided for the raising
Of only s1.s4s.45s,00o
Considering the loans that probably will
| he rs.Iuested by the allies, the American
| oeople will be called upon during the
fscai year to raise at least $4,000. .000. 900.
| ne declared.
The minority members object to the
| nroposed bond issue of billions of dollars,
| contending that this burden will be-
| come most severe at the end of the war
| when capital will be needed in the work
/ Of rehabilitation in both America and In
] Europe.