South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-07-29
HIGHER INCOME
TAX TO MAKE
WAR REVENUE
Senate Committee Plans to
Raise at Least 81, 943,-
100000 - Leave
Rest to House.
Associated Press Service ,

J Associated Press Service
WASHINGTON, July %. The
I senate finance committee reached a
tentative agreement late today TO re-
wise the present s1,67O.OOO.OOO war
tax bill so as TO raise at least ST.
943.000.O00 the larger part of the
increase to come from higher in
come taxes.
Members Of the committee said
tonight il is possible the total Of
the bill before it gets 20 the senate
will be two billion dollars. Accord
! ing 20 the present plan about $780,
600. 600 of the increase will be OBJ
tanned through higher income tax
rales-S70, 100000 from individuals
ard the rest from corporations. The
committee figured on an increase in
the normal rate on individuals from
two to five per cent an don cOrpo-
rations 10 six per cent. The rest of
the increase may be obtained by in
creasing the excess profits tax and
by consumption tax and on sugar,
tea. coffee and cocoa.
Under the program $1,O62, 1000
would be the total levy this year
upon incomes. The present law
! yields $500. zoo. 900, the pending bill
originally was designed TO increase
this by $500. 100000. and the $3.50
600, 900 additional it is now propos-
ed to levy would raise it over the
billion mark.
Leave Rest To House.
The senate committee will confine
its work for the present TO the pres
ent war tax bill and will leave TO
the house the task Of raising the
rest of the $1,000. 600, 900 the admin
istration believes il must have to
prosecute the war this year. Ma
jority Leader Kitchin OF the house
was i'm conference with the senate
committee today and this decision
was reached as a result OF his con-
tention that the house might re-
sent any senatorial infringement on
its constitutional prerogative Of in
stituting revenue legislation. Wheth-
er the house will prefer to author
ize $4,000. 900, 600 in bonds or treas
Try certificates to supplement the
$4,000. 100000 the senate is provid-
ing will not be determined until next
week
The income taxes proposed, Chair
man Simmons announced tonight,
represent the concensus Of the COM
mittee's opinion" They probably
will stand. as the committee was
ready 10 formally vote on the up
ward revision late today but de-
ferred final action until Monday"
The decision today TO leave TO the
house the task Of providing $1,000
100000 additional, promised greatly
to expedite senate action on the
pending revenue bill. Sen. Simmons
said the committee plans to COM
plete it's revision Tuesday and re-
port the bill to the senate for be-
ginning OF debate the latter part Of
next week
No Immediate Necessity.
Sen. simmons said tonight there
is no immediate necessity for the
senate to consider revenue questions
. yond the bill. There is no oc-
c. ION for Immediately providing
revenues 10 meet the new eSll-
mates" Sen Simmons explained.
There may he no necessity Of fur
her revenue measures until the De-
cember session. With the pending
bill there are ample funds 70 meet
all calls until December"
The committees agreement TO in
crease income taxes by S23O,000.-
600 increasing the pending tax bill
from S1.67O.O0O.OOO to at least ST.
$4,000. 900. was said 70 be based
upon belief that the bulk OF the in
crease should come from incomes
rather than war profits. already
heavily taxed in the bill.
The committee gave much time TO
discussing reconsideration OF the
amendment. already written into the
bill. levying a tax of Is per cent
upon corporations undivided or un-
distributed surplus. This is known
as the amendment of Sen. Jones of
New Mexico and has been vigor-
ously opposed by corporations. There
was much opposition to changing
this section.