The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-08-06
REVISED WAR TAX
BILL REPORTED TO
SENATE FOR VOTE
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thus diminish government sources of
taAat1on 1t would be one of those
disturbing taxes which would alarm
business and check Industrial pro-
ouctlVlty. 1t is very poor economy
and would hold out g. threat Of uncer-
tainty."
In recommending the graduated
war profits tax upon individuals as
wen as we'll as corporations in lieu of
the present eight per cent. excess,
prohts law, the committee said its
plan Is similar to that Of European
countries, where 1t has had marked
success.
We 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 it will work
satisfactorily even under increased
rates. Your committee has not been
able to find any satisfactory reason
why individuals engaged in trade and
business should not be subject to this
tax (War profits) as well as corpora
tons and partnerships Under the
present law. the report stated, infat-
ed values to patents and trade marks
and watering of corporations stocks
makes evasion of the revenue law
possible, while the committees new
basis is believed to meet the situation.
Senator Simmons also pointed out that
the new plan is war profits tax
rather than an excess profits levy.
The new tax Of one cent for each
70 cents paid on parcels post pack
ages was said in the report to remove
discrimination in favor of the rail-
roads and the parcels post.
I'm addition to this he report said,
your committee can see no intrinsic
reason why, in this present emer-
gency, the government should not i'm
pose a tax upon this method of trans
portation, especially in view of the
fact that the rates on first and second
class mail are increased
4 The House five per cent. taxes upon
electricity, gas and local telephone
service were eliminated because ''it
appeared to the committee that this
tax would fall with very great severity
upon the people of moderate means
as we'll as the poorest classes, who at
the present time depend very largely
in the cities upon gas or electricity to
furnish thel with both light and
heat for cooking as well as in many
cases, with power for running small
machinery like that of the sewing ma
chine. The committee felt that a
tax of this character ought not to be
imposed unless point was reached
where it would become necessary to
tax everything susceptible to taxa
ton. Light and heat are the very
last things which should be subject
to taxation. For similar reasons the
pny NIT tao a.
upon charges for telephone service
to- subscribers be eliminated!
Striking out of all insurance taxes
from the House bill was based upon
the belief that excise taxes uvon In
surance is a questionable principle
| and should be subjected to tax only
as a last resort.
Elimination or reduction of all of
| the five per cent gross sales tax upon
many manufacturers was defended
because the manufacturers also must
pay high income and excess profits
| taxes. your committee felt" the
report said, that only where the
conditions are exceptional should
such manufacturers gross sales tax
be justffiable.'' For these reasons
the House tax on patent medicines
was reduced to two per cent.
Proposed new federal license tax on
motorcycles and automobiles based
upon the original selling cost in lieu
| of the House manufacturers tax, was
| explained as follows:
| "A gross tax upon automobile
| manufacturers was first considered
but on thorough investigation it ap-
| peared that over 80 per cent. were
making very small profits. A few
were making enormous profits. A
gross production tax in size sufficient
to produce substantial return would
1 have driven out of business a large
majority of automobile manufacture
ers. Your committee concluded that
the automobile was proper subjec,
| for a war revenue tax and recon-
| mends for the high gross sales tax
which might or might not be passed
on the purchaser, a moderate excise
/ tax upon the owners of automobiles
and motorcycles
4 Declaring that the new tax on cab
| arets and retention of taxes on other
amusement admissions is justifable
the report said the tax On moving
picture theatres charging less than rs
cents had been eliminated, because:
1.-THE moving picture show has be-
come national institution. It pos
sesses many valuable educational fea-
lures. They are largely patronized
by people of small means"
House taxes on club dues were elm
mated, the report said, because it was
difficult to reach clubs properly taxa
| BILE and at the same time exempt
those which should not be taxed.
Most House stamp taxes, virtually
those of Spanish War days, the report
said, have been retained. The new
one cent stamp tax on bank checks
it was said, was provided because
prevalent in most belligerent coun-
tries and because there is no good
reason why this source,a which would
yield a substantial revenue, should be
overlooked
The House general 10 per cent
tariff levy, the committee declared
would have taxed nearly 1000 articles
and yield 5000, 100000.
There is no estimate, however, OF
the amount the consuming public
would have to pay the report said
so sweeping a change would have
brought consequences thought clearly
undesirable
The committee, it was stated, sub.