New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-24
Hard Task of Making
Changes Is Shifted
to Senate
Framed to Raise
s1,S57,OOO, 900 a Year
BIGGEST Increase Is on In.
comes; Auto Tax Is
Restored
linn ne T1hun, Rurcaul

hitter critics, and defended by no one
except on the ground that we've got
n have the money" the new war rev
,nue bill passed the House tonight, 329
70 rs. and was sent TO the Senate.
The measure. as nearly as can be fS-
ured. will produce about one billion
,ieht hundred and fifty-seven million
dollars a year, or about forty million
dollars more than as reported by the
committee. The big boost came in the
knroot amendment, increasing super
taxes on incomes above $4,000.
This increased the total Of the bill
By ss0.0OO,0OO, but there were few
reductions. One of these was the tax
on billboard, streetcar and kindred
advertising, which was eliminated to
DAY. The tax on express charges was
also cut from 10 per cent to 6 per cent
while there was modification Of the
postal charges which may slightly re-
duce the revenue.
Outstanding features Of the bill are
lance, excess profits, liquor and cigar
and tobacco taxes, virtual abolition OF
the present customs free list and 10
per cent addition TO existing tariffs,
new taxes on manufactures, amuse-
ments, clubs, public utilities and insur-
Anee, a far-reaching stamp tax and
greatly increased second class mail
natter rate. based on the parcel post
zone system.
Few Changes in Original Bill
In only four particulars does the
measure now differ substantially from
The original draft. Surtaxes on in
comes above 0,O00 have been in
creased about one-fourth above the
committee schedule. Several articles,
iscluding print paper and pulp and
gold and silver, slated for lO per
rent duty, have been kept on the Tree
list. Slight reductions in the second
elass mail matter rate have been made.
A proposed per cent tax on all ad-
vertising except newspaper and perlod-
icsl is eliminated.
The House to-day reversed ITS action
on the automobile tax, restoring the
original committee plan, which lays
tax Of per cent on the selling price OF
every automobile and auto part, regard
less of profits or lack of them In the
manufacture.
In passing the bill to-day the House
took the position frankly and openly
that it was merely passing over hard
lob 10 the Senate. Nowhere was there
any belief expressed that the bill which
passed to-day is more than a basis on
which the Senate can start, and there
is no expectation, and less desire. Tor
the revenue law which must be enacted
TO resemble in anything but the amount
10 be raised the bill which the House
sends over 10 the Senate.
Even the whole policy of raising one
half Of the war expense by taxation
and one-half by bonds may be changed
sby the Senate. There is considerable
sentiment in the upper house, as there
is in the lower. favoring the payment
Of about three-quarters of the cost OF
ne war by bonds and only about one
quarter by taxation.
Simmons Favors Bond Plan
Chairman Simmons of the Finance
Committee is known TO believe that all
ne strictly military expenditures, in
sddition 20 the normal peace cost of
the army and navy. and in addition TO
the purely civilian increases OF the
departments occasioned by the war,
should be paid for by bonds. Should
this view prevail. the bill will be more
Than cut in half before it leaves the
Senate Finance Committee, though the
pressure OF the Administration for the
half-and-hslf plan may prevail.
But II the Senate should determine
70 raise as much money by taxation as
ne House proposed in the bill passed
Today individual taxes would be shift
eo It is confidently predicted, TO an al
most unreeognizable extent.
Pleading that the bill be sent back
10 committee and protesting that II
would be impossible for the committee
70 bring back worse bill. Representa-
I'VE Graham, Of Philadelphia. declared
IN the closing debate in the House that
ne only excuse for voting for the bill
all was that the Constitution pro-
nded that revenue legislation must
originate in the House.
One Of the points in the bill which il
= generally believed will be changed is
NE automobile tax. The Senate. il Ia
declared, will either substitute license
az. which would hit all automobiles
row In use. adding a national TO the
'~t licenses OF else TeuuCe tnt
amount OF the tax on new machines
from per cent.
Some OF the Larger Taxes
Some Of the larger taxes imposed in
ne Dill as Il passed the House follow:
Income taxes Exemption reduced from
e'.V'p and $4,000 for married and single
Fefsons respectively n $1,000 and $1,000
.ae new tax Is per cent up 20 the pres
nt exemption. then per cent up 20
,'v'. when supertax Of ! per cent ad-
'uonsl s levied up TO s. 500. This
-pertsh runs up 20 - per cent on in
,on.es IN excess Of 81 600. 900. in addition
ue present income taxes.
rs every part OF large income is sub
-. 70 different rate OF taNh.ion. and
"e present law stands. while the pro-
s'ons OF the new bill are intended TO be
[addiuon 20 Il. IL will require consid-
Ap~ time on the part Of an expert ae-
eeh'Ant 70 figure the tax on fair sired
The increases in this bill are estimated
y produce si1f .00o. 900 Of additional reve-
me increase in the excess profits tax 10
~ simple. II simply takes 10 per cent
~ Proht in excess OF per cent on the
"yIa invested instead Of per cent Of
prohc. a. the present law does
Inc tax on distilled 6auor Is doubled -
~" Si.l9 70 S2.2o The tax on beer IS