The Robesonian., 1917-09-06
SENATE ADOPTS COMMITTEE
REPORT FOR WAR PROFITS TAX

SENATE ADOPTS COMMITTEE
REPORT FOR WAR PROFITS TAI
Total Levy of 81, ,zs6, ,ooo, ,ooo-Extend
Tax to Peace Profits
Washington Dispatch, Sept. 5.
The Senate's bitter fight over wa
profits taxation virtually ended lat,
today with adoption Of the financ,
'committee's compromiseprovisions fo1
a total levy of 81 1856 900 900 or abon
one third Of this years war and nor
NAL excess profits.
This is an increase Of 81 .O6O O0O
oOo over present taxes. The high.
tax advocates failed to secure adop
ton of single amendment.
The vote on adoption of the finance
committees draft was " to z. The
seven were Bankhead, Borah, Gron.
ma, johnson, Calofirnia; LaFolIette
Underwood and Vardaman.
Action on the war profits section
the largest revenue producing pro.
VISION was taken technically in com.
mlttee OF the whole and is subject to
llhal review later. Today's decisive
rout Of the high-tax element, how.
ever may prevent any further eff.
1orts along this line and Senate lead
ers e. say it forecasts defeat for the
light beginning tomorrow for heav-
Ter income taxes.
With adoption of finance com
mlttee,s war profits provisions-in.
creased by the committee from 1862
100000 to 100000 after the
nigh tax Senators began their fight
the bill totals $685. ZOO, 900. nea,
which figure it is expected to remain
MANY Senators, however, predict ul,
innate elimination of consumnt;on
taxes, aggregating S86,OOO,OOO; sec
ond-class mail increases of S12.6OO
900; freight taxes of ST., 100000 and
stamp taxes on parcel post nack-
ages estimated to yield about S8..
In the contest between those ad.
vocatlng and opposing higher taxa
tlon OF war profits, which has ap-
preached high levels of Senate dis
senslon the largest muster of the
ht;f'er-tax group was twenty-nine
votes; This came today on an
amendment of Senator Johnson of
California, to increase the maximum
graduated rate from 60 to 70 per
cent. Supporting it were:
Democrats: Ashurt, Beckham
Broussarl, Chamberlain, Fletcher,
Hollis, Husting, Johnson, South Da-
kota; King, Kirby, McKellar, Myers,
Overmaf, Phelan, Shafroth, Shep.
pard, thompson, Trammell and Var
daman-19.
Republicans: Borah, Brady, Gron-
ma, Johnson, California; Jones, Wash
lngton; Kenyon, LaFollette. Nc
Nary, Norris and Sutherland 10.
Total, 29. ,''''>' ~
AS now written into the hill tho
war profits section strikes out the
house provision for an additional
tax Of S0O,OOO,000, and is subs IT,
tute for the present excess profits
law now yielding s226,OOO,OOO. The
total levy of the new provision is es-
tlmated at $1,286,OOO,0OO.
1t also extends the tax to ordin-
aray, normal peace profits in excess
OF lO per cent in addition to exces-
slve war profits, reached bv grad
uated rates, amounting to sur taxes.
ranging from IL to so per cent. The
excess is based upon the net income
above $4,000 of corporations, BART
nerships and individual in trade or
business over the average of 1911.
1917 and 1913-the prewar standard
with a minimum exemption of six
per cent of actual invested capital
and maximum exemption of 10 per
cent. j vi 4
The graduated rates and their es-
revenue yield follows:
u per cent on excess profits up
to Is per cent, $1OO,O8O,OO0.
16 per cent between Is and 25 per
cent, $46,08O,OOO.
20 per cent between 25 and so ner
cent, 100000.
rs per cent between so ard rs Dor
cent, $101, 100000.
30 per cent between Is and 100 ner
cent, $8S,200,O0O.
35 per cent between 100 and 150
per cent, $12O,O5O, 900.
40 per cent between $50 and 200
per cent, S102,OOO,OOO.
45 per cent between 200 and $50
per cent, $84,150,0OO.
5O per cent between 25O and 900
per cent, $72,5OO,OOO.
6O per cent on profits in excess of
3OO per cent, $462,94O,OOO.