Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-08-11
SIMMONS OPENS
DEBATE IN SENATE
ON WAR TAX BILL
Explains Committees Pur-
pose in Redrafting
House Measure.
SAYS EVERY SCHEDULE
Is CAREFULLY WEIGHED
Changes Will Greatly Increase
Burden to Be Borne by
Big Corporations.
REPLIES TO LEADER kITCHIN
Many senator's Have Prepared
Speeches, and Long Consid-
Grafton Is Expected.
SAYS EVERY SCHEDULE
is CAREFULLY WEIGHED
REPLIES TO LEADER KITCHIN
Many Senator's Have Prepared
Speeches, and Long Consid-
Grafton Is Expected.
Inv A..ocia,edprc,s.l A

WASH1NGTOE. August l0.-Chair-
man Simmons. explaining to the Sem
atc to-day the Finance Committees
purposes in redraf,inr the war tax
bill, declared tho changes made will
greatly increase tho tax burden to be
borne by the big corporations which
have profted from the var.
In detailed statement opening de-
bato on the measure. senator Simmons
said the committee had weighed every
schedule carefully during its many
weeks OF consideration. and that the
bill as now presented would place the
tax where II belonged without work
ing injustice to any ono. He did not
complete his statement and will con
tinu" tomorrow.
without mentioning him by name.
the North Carolina Senator replied at
: length to Chairman kitchin. Of the
House Ways and Means Committee.
who recently charged that the Senate
committee had rewritten the House
bill In such a way TO favor pros :
porous corporations and individuals.
On the contrary tho S-nntor insisted.
the Senate revision would tax the pros
porous much more heavily than had
the House bill. The House he said
had been far too l"nicnt with those
who had "reaped this harvest of gold -
HOUSE TOO LENIENT TO MEN
WHO HAVE REAPED HARVEST
Certain corporAtions in this coun
try are going to he MA lie to disgorse
In order to pay the expenses Of this
war. very considerable proportion, II
their income" said Senator Simmons
s'srhe 1915 war profits .xcsed $4,000.
ridiculously small sum from tn. swol.
len war profits. 1t was entirely too
lenient to the men who have rcapcd
this harvest OF gold gold they exact
ed out of the carvings Of those who
must bear tho burdens OF this struS
gle"
Senator Simmons said those who
criticize the Senate committee because
IT substituted graduated tax on cor
porntions war profits for Nat rate
OF 5 per cent. as levied by the House
did not understand the situation. He
declared that out of fourteen countries
having such tax. only two Canada
and Spain. impose a war profits tax
on basis other than the plan ou,.
lined by the committee
DENIES CHARGES THAT niLL
FtNORS THE RAILROADS
Defending the committees consump.
tion tax on sugar. tea and coffee. h,
said the original House bill levied jus,
about as much tax in other forms or
these articles. He denied charges tina,
the Senate bill favored the railroads
Many Senator'S have prepared
speeches. and long debate is expect
ed. Senator La Toilette is preparing {
minority report in conjunction with
q No., 4
to be able to present it Tomorrow.
In opening the debate on the 81.
0o6.970.000 measure, Senator Simmon.
declared the committees p,Irpose il
revising the House bill was to rails,
sufficient Federal revenue for cxtra
war expenses without injustice to rich
or poor, individual nr corporation anc
without in5uriDG sources from which
the new and future taxes must come.
The Dill, said Senator Simmons pro.
poses 10 raise 4 larger proportion o.
war revenues by direct taxation anc
less by bonds. distributing. the wa,
burden between the present and futur,
generations. He pointed out that near
ly $l.4oo000.00o of the new war take.
are to be obtained from incomes anc
war profits alone. with over $500, ,oo0
600 more from intoxicants
Before the war" continued Senator
Simmons. "our total expenditures wer,
between $700.o0o.oOO and ssoOoO 600
exclusive OF postal costs.
EXPENSES THIS YEAR
NEAR $4,000, ,0O0 600 90,
"It Is evident that the expenditure,
during this fiscal year will reach some
thing like $4,000. 600. 900
These conditions suggest income.
and war profits as the chief and JUS
-. source of revenue 20 defray the ex
penses OF the war. Apparently, tn,
House did not take this view.
"As the war profits for 1916 exceed
$s.o00,o0o. the House levy of $500. .ooo-
900 from war excess profits In the bill
estimated to raise $500. 900 900. doe.
not meet the manifest equities OF tn,
situation, which required at least one
half Of the sum proposed to be raised
should be drawn from incomes anc
excess prorts."
Senator Simmons substituted statis
tics said to have been compiled by J
p. Morgan & Co. showing that forty
Ave great corporations alone Will pay
under the proposed committee re
vision. war profits taxes Of s2Ss.977 200
against only s77,736.O00 proposed un
der the House bill a table presented
made the following estimates of tn
Yprincipal war tax payers.
ESTIMATE OF PRINCIPAL
WAR TAX PAYER!
$ United States Steel Corporation--es
,s timated excess profits. $2o7.s45.o0o
71continued on Second PaCc0