New Britain herald., 1917-08-06
Object in Framing Measure Was to Impose Least Bur- den on Public, Senator Simmons Explains.
LA TOILETTE MAY
 OFFER SUBSTITUTE

of Moderate Means Protected From
 Unnecessary Assessments-Tax on
 Motor Vehicles Explained.
 Washington, Aug. 6.-The war tax bill. finally revised to meet latest es- inmates, was favorably reported today by the senate finance committee. It proposa to raise $2,OO6, ,s7O,OOO by taxation
 The majority report was submitted by Chairman Simmons, who explained that the committees revision of the house bill was on the principle of raising revenues with the least burden upon the public. A substitute report with a substitute bill Is expected from Senator LaFollette. Senators Gore and Thomas also plan sepa- rate report.
 Senator Simmons report stated that a flexible scientific war tax su- perstructure had been constructed by the senate committee for the imposi- tion of war taxes-the largest tax budget in American history-as we'll as for future tax increases declared probable.
 Income, war profits, liquor and to- bacco tax increases. the majority re- port pointed out, form the nucleus of the revised bill.
 Meets Present and Future.
 In a general statement for the com mittee. Senator Simmons said:
 "It has at all stages acted with q keen sense of the extreme impor- tance of it's action in its effect upon the country and the successful prose- cution of the war. Nor was 1t un- mindful that those who will have to pay these exactions will also have to furnish the larger part of the money to purchase the bonds for ex- penditures not provided for by tax ation and also as we may be called upon to loan to foreign governments engaged with us in war against Ger many.
 Your committee was profoundly impressed with the expediency and necessity of broadening and develop ing our system of special taxation so as to present a scientific scheme, log ically constructed; to provide a su- perstructure sufficiently strong and flexible to meet not only our present but our future war needs and so adjusted as to distribute equitably the  safeguard the activities of the nation by imposing no tax which would not leave the taxpayer 8 reasonably com- pensatory return from his investment.
 "The basis of the system proposed ~by your committee is the income and war profits taxes, internal revenue taxes upon whiskey and tobacco. and certain moderate subsidiary levies ill the nature of excise taxes. The Sys- tenn presented is in form much tho same as that in the house. but it has, it is believed, been systematized. co-ordinated and made more consis- tent.
 "As the result of these changes it is estimated that about two-thirds of the additional revenue expected will come from the income and war profits taxes. In fixing the rates upon in comes and excess profits your com mittee kept constantly in mind the fact that the amount of revenue de- rived from these sources would de- pend upon the prosperity and activity of business and that to impose taxes which would tend to discourage en- terprise and dampen these activities would tend to defeat the legislative purpose. Moreover, it thought that S<ANNN'N' profits were fixed at the highest level there might he but little margin left for further increases in rates.'
 Defends Elimination of Surfaces.
 The report defends the elimination of the so-called Lenroot surtaxes on incomes of over $4O,O00 added in the house. designed to raise $66. OO0,O0O as follows:
 "In view of the fact that in ad- dition to the large increase in the normal tax and surtixes upon incomes the bill provides for large increase in the war profits tax of corporations and partnerships and includes in dividuals in the scope of that tax, anr in view of the probability that it vii be necessary hereafter to further In crease these rates In order to provide for increased war expenditures. youl committee believes that for the pres ent it is inadvisable to increase tho surtax rates beyond those proposed Il the original house blll.'
 Regarding the elimination Of the house retroactive income taxes Ol 1916 incomes which would have pro duced $l0S, 100000. the report stated
 This tax seemed in principle botf morally and economically unsound Incomes of the last year have pait their taxes and the balance has eithe1 been spent or saved and added tt ~1ca pital in which form it will yield re turns in the ensuing years. To ta' this tax-paid income again is not on1,
 kCcntinuxd on Sixth Fase.)