The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1917-08-06
LARGEST WAR
TAX BUDGET
IS REPORTED
Government Proposes to Raise $2,-
600,970,00O in the First In
stallment
PARCEL POST ASSESSED
UNDER NEW MEASURE
Estimated That Increases Means
Levy of About Seventy Five
Gents Per Capita
TO TAKE RECESS

W sVN. V@S.oS
Washington, Aug. GA con-
qressional recess in September Is
the goa; toward which the leaders
now are working. Before taking
a vacation, however, congress
must clean up important pending
legislation. The house already
has cleared its slate Of war leQis-
Iation, and is waiting for the SEN
ate to act. The most important
Of these measures are the con-
ference report on the food and
the war.tax bills.
Meantime the house will take
series of three-days recesses, the
first Of which will begin tomor-
row.
Congress will take a recess of
at least six weeks, according to
present plans.
Washington, Aug. 6.-The war tax
bill finally revised to meet latest esti-
mates was favorably reported today
by the senate finance committee. 1t
proposes to raise $2,600,97O,O0O by
taxation.
The house bill proposed $1,867 ,000,-
900 in new taxes. No provision for
additional bonds to be considered lat
er by the house are made in the SEN
ate bill.
Chairman Simmons plans to call up
the revised bill for debate the latter
| part of the week., and hopes for its
final enactment by congress early next
month.
!, Most of the new taxes proposed un,
der the revised bin for war expenses
of the present fiscal year would come
from incomes, war excess profits, liq-
uor and tobacco taxes.
Strikes Out Retroactive Tax.
The revised senate bill strikes out
the retroactive upon last years in
comes, by principally increasing sur
taxes on wealthy persons, and by
doubling the normal taxes on corpor-
atoms, proposed to raise $777,000,000
in addition to $33O,000,00 now secured
from incomes. 1t proposed levy of
$562,00OO00 on war profits, and ex-
tends the tax on individuals in trade
or business as we'll as corporations.
The total estimated increase in fed
eral revenue by $2,600,97O,00O pro-
posed under the amended bill, was
said to be conservative Iby experts.
Many of those in charge of the re-
vision believe the bill will, in actual
operation, yield many millions more.
The war tax bill was reported to
the senate today as revised by the
finance committee to meet the latest
estimates for war expenditures.
The majority report was submitted
by Chairman Simmons, who explained
that the cOmmittee's revision of the
house bill was on the principle of
raising revenues with the least bur-
den upon the public. A substitute re-
port with substitute bill is expected
from Senator aFollette, Senators Gore
and Thomas also plan separate re.
port.
Senator Simmons report stated
that a flexible scientific war tax su-
perstructure had been constructed by
the senate committee for the imposi'
ton of war taxes-the largest tax
budget in American history-as well
as for future tax increases declared
probable.
Income, war profits. liquor and to-
bacco tax increases, the majority re-
port pointed out, from the nucleus OF
the revised bill,
Regarding the elimination Of the
house retroactive income taxes on
1916, incomes, which would have pro-
duced $10S 100000, the report stated:
Unsound in Principle.
"This tax seemed in principle both
morally and economically unsound In
comes of the last year have paid their
taxes and the balance has either Oeen
spent or saved and added to capital.
in which form it will yield returns In
the ensuing years. To tax this tax
paid income again is not only double
taxation of a peculiarly obnoxious
kind but would possibly compel tax
payer to impair his disturbing taxes
which would alarm business and
check industrial productivity. 1t Is
very poor economy and would hold
out threat of uncertainty"
III RECOMMENDING lHO g houoISu "e'i
profits tax upon individuals as well as
corporations in lieu of the present
eight per cent excess profits law, the
committee said its plan is similar to
that of European countries. where 1t
was had marked success,
Higher Taxes.
eve must face the possibility. even
the probability" the report stated,
"of even higher taxes than are now
proposed in this country and we must
adjust our system so that 1t will
work satisfactorily even under in
creased rates. Your committee has
not been able to find any satisfactory
reason why individuals engaged in
trade and business should not be sub
ject to this tax (war profits) as we'll
as corporations and partnerships.
Under the present law, the report
Con- :nued ON P,lge Three)