Evening journal., 1917-08-23
Votes TO
COhSCRIPT wealth
Adds $72,OOO,O0O TO Rev.
enue Bill by Taxing
Incomes
UNANIMOUS FOR
THE INCREASE

WASHINGTON, Aug. 25.--scnatc
sentiment for higher taxation Of in
comes and war profits was given
initial expression yesterday by rejec-
ton OF finance committee recon-
mendations. and tentative adoption Of
provisions adding S72,0oO,OOO TO the
war tax bills levy ON individuals in
comes subject 70 surtax
After three days spirited discus
sion of tax increases the Senate re-
turned to consideration OF committee
amendments and voted "A TO for
Senator Gsrry's amendment 10 great
ly raise surtax ON incomes exceed
ing 100000, estimated TO secure
S46,22500O moro revenue. It quickly
followed by voting, with small ma
iorltles. to retain the House surtaXes
on incomes from 100000 TO 100000,
including the so-called Lenroot
amendment This is estimated TO
add S26.175OOO in revenue.
As the revised House bill formerly
stood Il was designed TO raise from
individual incomes S417.764. 600 in ad-
dition to the amount collected under
the present law. When the Senate
recessed last night. there was pend
ing Senator La Follette's substitute,
which would increase the additional
levy on individual incomes TO Sl23s
$4,000 The Wisconsin Senator also
has two other tentative amendments
in abeyance proposing levies aggre-
eating respectively s65S.7S7 900 and
S5O5. SOS. 600. as compared with S4lI-
7G4 600 under the finance committees
revision
That the Sensles decisive stand for
increasing income rates may be the fore
runner Of further material increases was
admitted last night by leaders opposing
drastic advances. They predicted dc
feat OF Senator Ia Follctle's amend
ilenls. today but admitted that they
would gel a large vote. The sentiment
for tax Increases Is expected TO result
in a bitter contest over the war prohis
section. TO be taken Up next.
Preliminary 90 the initial Noling on
the income tax section Yesterday SEN
ator Lodge Republican member ot
finance committee. made a two hours
speech I'm opposition TO increasing the
hurs lc,ies senator Townsend, an
other Repuhlican committee member
however advanced an increase TO
/ 81 600 100000 TO be secured by mucl
s-9bct-dbottcrs90s. 23Ao o Q
higher rates on war profits, incomes
and also from liquor, tobacco ana
few other articles, including autoho'
biles. The Michigan senator urse'
taking so per cent. OF war profits
Senator Lodge insisted that the bll
provides an SIMPLE proportlon-ovcr .
per cent.-of this years war expense
by taxtion and should not be increased
so as to iniure business.
Senator Lewis charged mat th'
Treasury has evidence OF income taN
frauds by wealthy persons deirauuihs
ihe government Of s30OOOOOOO.
The individual income surtax rate
increases. as tenNtivoly approved
Yesterday. range from one per cent
on incomes from $1,000 20 $1,000 to ~
per cent on those over S50O.OOO. SEN
ator La Fol'eues first amendment
nov under consideration proposes the
same minimum and maximum ra'es
but also for many more taxable SUB
divisions for about one per cent hu'
diuonal on each $1,000 over @oOOo-
The Lenroot amendments retained
bv the Senate on test votes of 80 &c
80 and 81 TO %. make q fiat increase
OF 20 per cent. ON the surtaXes OF
incomes over 100000 After the tw'
test votes, Senator simmons. chair
man of the Finance Committee. ceased
further opposition and said the Senau
! had amply manifested its determlna
tion 10 retain the Lenroot rates.
Senator Smoot opened the attacl
late Yesterday on the la fQlletu
amendments.
During the debate Senator Norrl
asked the Utah Senator IL Il woul
not be TO the datrimont OF the coun
. try 10 issue any more bonds. such a
the Liberty Bonds. because they ar
exNmpt from taxation. Senator Smoc
2 replied that he did not believe tina
there would be another bond issu
{ during the war exempt from taxation
and that those already issued wOul
be cnlled in and redeemed.
= Prospects OF a final vote on the Ia
j, Bill being de ayed until next wee
& yesterday caused House leaders 10 II
vge their tentative arrangements
have the House resume its reguli
sessions next Monday They wiz b
gin following passage OF the reveni
bill.
A call was sent out for the Wn.
and Means Comm ttee to meet ne
- Monday TO begin consideration Of q
S1i53S 100000 war bond and certi
b. cate issue
is