The sun., 1917-05-17
HOUSE PILES UP
BURDEN ON RICH
LenrOOt Successfully Starts
Drive to Get $1W, 100000
More OH Incomes.
2 NEW GRADES PLANNED
81, 100000 Glass to Be Taxed
SO Per Cent. IL Proposals
Prevail.
2 NEW GRADES FLANNEL

WASHINGTON, May 16.--Led by Repre-
sentatlves Lenroot, a Republican. and
Sherley. a Democrat, a drive to increase
the tax burden on wealth carried In the
war revenue bill met with ready re-
spcnse In the House to-day when an
amendment increasing the surtax ON In
dividual incomes on more than $4,000
and less than $4,000 from to 10 per
cent. WAS carried by vote OF 9s to 81.
The House was considering the bill In
committee Of the whole and roll call
vote was -unobtainablc.
This success. accomplished despite
earnest pleas from Republican and
Democratic members OF the Ways ana
Means Committee, indicates clearly that
the temper of tho House favors doing
away with a number Of the consumption
taxes in the bill and supplementing rev.
enue by increased burdens on incomes.
The House adjourned Immediately
after the vote ON the Lenroot proposal.
Tomorrow Lenroot viii continue Offer
ing amendments increasing the surtsxes
a5 per cent all the way UP and adding
ending at 100000 and the other AT
So. .000, 900. Under the Lenroot plan In
comes In excess of s1.000,000 Will be
taxed 6S per cent, including the pro-
visions OF existing law.
sherlcy's Proposal Fails.
Before the success OF Lenroot's pro-
posai an amendment offered by Repre-
sentative Sheriey increasing the surtax
on incomes between $1,000 and $500
from 1 per cent. to . per cent. was de-
fcatcd. Lenroot. who favored Sherleys
plan to the extent Of putting Is per
cent increase on surtaxes. will seek to
20 back to the lower grades tomorrow
In the event that his efforts to change
the higher schedules are successful.
Should the proposed increases prevail
there will be an attempt to strike from
the bill tho projected freight. light and
heat taxes and possibly the increased
second class mail matter rate. Unofh.
cial estimates are that the proposed in
come tax increase would net approx
mately $100.000.00o.
Both SherIey and Leproot believe that
other features OF the bill, where dispro-
portonate burdens have been imposed.
should be changed and efforts will be
made to put through amendments to
that end. Lenroot wishes to decrease
the : per cent. freight transportation tax
md Also strike out some of the consump-
ton tAfts In offering his income tax
amendment Lenroot attacked the "oner-
GUS consumption taxes" OF the bill.
Shefiey wishes to lessen the burden OF
second class postal increases.
The tax on incomes n not tax that
can destroy the activities of men," de-
clared Shsrley. "a great deal OF criti-
clsm Of this bill is that II may result in
certain cases in totally destroying the
particular business OF the individual man.
"I AM In favor Of raising as much
money as possible from incomes without
doing tho unfair thing. l should be glad
| to see new sections In the bill where we
would tax by increased amounts the In
comes above. 81 100000"
Chairman Kitchin. in charge OF the bill,
asked sheriey what items the latter be-
lieved should be eliminated.
"I think the tax on second class mall
matter for one thing replied Sherley.
Attacked by Kitchin.
! Mr.. Kitchm assailed all suggested in
come tax rate increases over the COM
mittO recommendation. He insisted
that support of such proposals came only
| from those who sought to serve certain
interests and not TO lower taxes gener-
ally. 81 haven't heard any one here OBJ
ject to the taxes on necessities" he
shouted. "The only taxes It Is proposed
TO decrease are those on second class
mall matter. automobiles and other lux
, urles."
Representative Lenroot characterized
the Democratic leaders remarks as in
genous' but as failing 10 get away
from the fact that the general 25 pei
cent. increase would enable the House
to strike out the freight, light and heat
taxes. These taxes would fall on every
home" he declared. "Our real Interest
here liz to make the tax as small as
possible on the poor men with families
and make It as large as possible or
those who are able to pay"
In opposing the proposed increases
Representative Fordney said II taxes
on the wealthy were put so high thai
they felt an injury was being done then
they would evade the levy by passing
dividends and other methods. He alst
pleaded against what he termed "clas!
legislation" insisting that the rich wer,
as patriotic as the poor.
Former Speaker Cannon suggested
that only about S10.000.000,00 OF tn
total wealth OF s250,000. 100000 in th'
United States was In the hands OF tn,
"plutocrats," and he saw no reason fo
trying to place an unfair burden or
them
Bill Defended by Hin.
REPRESENTATIVE Hill declared the In
come tax section should not be changed
as the people 1t affected would pay un
der It's provisions. and their State In
come taxes all they could afford. III
reiterated his previous statements tina
'the bill has irs faults" but that II wa
as we'll balanced n measure as the com
mittee could get together and that an,
attempt to rewrite II in the House woul,
accentuate rather than diminish its In
equalities.'
II am supporting this bill because tn
Administration says II must have thi
amount OF money and h~cause II la
war time bill" Hlll declared.
That the successful drive on the In
come tax schedule. the first In the bill
will be extended to other schedules
not unlikely. The House seemed /
relish the idoa Of upsettlng the Way
and Means Committees bill. particular
as the method of drafting the measur
met with little popularity. It is not In,
probable that the eleventh hour In
: crease in customs rates through a horI
xontal increase OF 10 per cent. ad va
/ 10 per cent rate on everything now o
/ the free list will be the subject OF bite
attack from both sides of tho aisle a
, uiscientific and ineQuitable.
THE .GREENnRIER-whits sulphy
Only one mint frSm New York.--ASss