The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-08-07
BILL
FOR WAR TAXES
$2,OO6,97O,OOO
Reframed Measure Adds
$336,070,00O to That
Drafted in House.
40 MILLIONS ON INCOMES
Normal Tax on Corporations
DOubled-Only Half Of
Nations Needs Met.
40 MILLIONS ON INCOMES
Special Despd,rh 10 TnE srx.

WAsRINoToN, Aug. 6.-The Senate
Committee on Finance to-day reported
the war revenue bill. from which Il is
estimated, according to the summary Of
the new and revised taxes, that the reve-
nues Of the Federal Government will be
increased by 2.o06.970,Q0o In war taxes.
For ten weeks the committee has been
celebrating over the measure. The bill
once was completed and ready for re-
port to the Senate, but II was halted by
protest from Secretary McAdoo, who
said the revenue which 1t provided was
insufficient for the needs OF the Govern
ment by more than $1,000, 900, 900. In
consequence the committee reframed the
measure. adding $336,970,00o to 1t.
Tho report Of the committee gives no
indication of any fixed plan on the part
of the Administration or OF the two
financial committees of Congress with
regard to the complete scheme Of Fed
cral financing for the war period.
Meets Only Half of Need.
1t makes no reference to prospective
bond issues, while at the moment 1t Is
known that this revenue in combination
with the existing Liberty bond issue, the
prospective issue of Liberty bonds al
ready authorized and the existing reve-
nue. measures provide for hardly more
than half OF the funds which will be re-
quired to defray the expenses Of the
United States aS a participant In the
world struggle in the fiscal year ending
June 80. 1918.
The report recognizes that the war
revenues which 1t is aiming to collect
will meet only fractionally the nations
needs.
The House bill proposed 1857. 900, zoe
in new taxes. The Senate Dill exceeds
in revenue producing power the House
measure by $362.o00, 600. It Is asserted
by its Senate trainers to have been "sys-
tematized. coordinated and made more
consistent This constitutes the FL
nance Committees sole criticism Of the
House measure despite the opportunity
offered by recent denunclations OF the
Senate measure by House leaders as "a
bill TO tax the poor to save the rich from
being compelled to make adequate con-
tribution to the nations needs"
Easier on Bia Incomes.
The Senate bill, as It affects incomes,
does not go to the same extremes as did
the House bill by the inclusion OF the
Lenroot amendment. The maximum in
| come surtax under the Lenroot amend
ment was 81 per cent The Finance
Committee stops at 80 per cent.
Similarly the Finance Committee ex-
| presses its preference for Its own war
1 profits tax as opposed to the excess
profits tax which the House drafted.
Most Of the new taxes proposed under
| the revised bill for war expenses Of the
| present fiscal year would come from In
comes, war profits. liquor and tobacco
taxes
The revised Senate bill strikes out the
| retroactive tax upon last years incomes,
but principally by increasing surtaxes on
wealthy persons and by doubling the
I normal tax on corporations proposes TO
| raise $777, 600, 900 in addition to the
| $3.50, 900 900 now secured from incomes
1t proposes levy Of $582.0o0, 900 on
war profits and extends the tax to indi-
viduals in trade or business as well as
| corporations.
Tax on Spirits Increased.
The House tax yield on distilled spirits
of $1O0. ZOO. 900 Is raised TO $135. 5.0OO. 0e0
that on beer from $s7.600,Oo0 to S4S,'
900. 900. and that on wines from $6,000.
600 to $2l, 900 900. A prohibitive tax OF
further manufacture or importation Of
distilled beverages also is provided
The original Senate committee pro
vision for an increase of one-quarter o.
cent a pound in publishers mailing
rates and 5 per cent. tax upon tn,
publishers net incomes over $4,000 II
lieu of the House plan for increasing
postal rates by zone system was re
tanned The House provisions reimpos
ing Spanish war stamp taxes were sub
stantially retained,
Chairman Simmons plans to call vi
the revised bill for debate the latter par
OF the week and hopes for its final enact
ment by Congress early next month.