New Britain herald., 1917-08-14
TAX WAR PROFITS, LAF0LLET7E'SPLEA Minority Report to Senate Calls
 Bill Inadequate
 GAINS FOR BIG CONCERNS Percentage of Net Income Over Nor maj of Corporations Shown to Be Enormous-Burden on People Who Can't Afford It.

] Washington, Aug. 14.-A minority
 report of the senate finance commit
 tee on the war tax bill was presented
 to the senate today by Senator La l Toilette, with the concurrence of Sen
 ators Gore and Thomas, recommend ! ing that war profits and big incomes
 be utilized as the principal sources of taxation in providing funds for 1 the country's war needs.
 Contrary to expectations, Senator LaFollette did not ptesent a substitute
 for the pending war tax bill, He an- nounced, however, that unless tha senate adopted amendments to he of
 fered by himself and his assistants a
 substitute will be offered
 The minority report charges that
 the bill as revised by the majority makes pa1pable inadequate provision for raising of revenue needed for fin-
 ancing the way through the next fis-
 cal year and that the onus of taxa
 tion has been placed "upon those
 least able to bear it.
 England has taxed her war profits
 80 per cent. without impairing her
 great industries, declared Senator La ''were never in receipt of larger in-
 comes, nor were her larger business concerns 1nptA ho,lEishing. ''Heavy taxes, he said could be levied on American corporations without any fear of affecting capital or crippling industry. t | If congress were to adopt the Brit ish rate of 80 per cent. on war profits, Senator LaFollette said more than two and a quarter billions of dollars would be realized in a single year from this source, Seventy per cent. would yield $2,021, 100000, 60 per cent. $1,732, 100000, 50 per cent. $1,- 433,70O,000, 40 per cent. $1,155,10O,- 900, 30 per cent $866,25O,000, ac- cording to estimates furnished by the trade.
 Must Finance Many Countries. Nothing that this country or any country has ever previously under taken in the way of war financing" he declared, compares with the ob- legations we are assuming. We have not merely to finance one country; we must to a large extent finance at least five or six other countries.
 In comparison with the average yearly wage of $700, earned by the American laboring man, Senator La Toilette presented statistics indicat- ing that the percentage of war profits over normal earnings of the DuPont r Powder company was 1,400 per cent, Bethlehem Steel 1900 per cent,
 American Zinc Lead and Smelling
 company 1,500 per cent, United
 Copper company 400 per cent,
 American Beet Sugar 25o per cent,
 Armour & Go. $50 per cent. and
 American Hide and Leather 25O per cent.
 In urging that the income tax scale
 be increased to tighten the burden
 borne by the laboring classes figures
 were cited indicating that wages have increased only 8 per cent. while the necessities of life have advanced S5 per cent.
 Tt is monstrously unfair,s" said Senator La Toilette, ito tax the every day necessities of the average man or woman to pay the expenses of war in addition to commanding their serv- ices, and the lives of many of them and their children, so long as the swollen and abnormal war profits are not taken.
 In support of the minority conten- ton that the majority estimates are grossly insufficient to carry the gov ernment through the next fiscal year Senaor LaFollette declared the esti-- mate expenses probably will exceed the estimated receipts by s9,402, 3O7.- 900. without taking into consideration the additional billions probably to be furnished the Allies. The majority report provided for the raising of only $1,943,45S, 5000. Considering the loans (continued on Third Page.)