Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-08-09
Senator Simmons Speaking for
the Finance Committee Calls
It a FLEXIBLE, Scientific War
Tax Superstructure''- Meas
ure Provides for Revenue of
$2,OO6,67O,000, an Increase of
S139,970,OO0 over House Meas
ure Adopted in May-The Lar.
gest Tax Budget in American
History.

Washington, Aug 6-The war tax bill
was reported to the Senate to-day as re-
vised by the finance committee to meet
the latest estimates for war expenditures.
The majority report was submitted by
Chairman Simmons, who explained that
the committees revision of the House bill
was on the principal of raising revenues
with the least burden upon the public A
substitute report with a substitute bill is
expected from Senator LaFollette. Sem
ators Gore and Thomas also plan a sep
arate report.
Senator Simmons report stated that a
flexible scientific war tag superstructure
had been constructed by the Senate COM
mittee for the imposition of war taxes-the
largest tax budget In American history
as we'll as for future tax increases declar-
ed probable
Income. war profits, liquor and tobacco
tax increases. the majority report pointed
out form the nucleus of the revised bill
In a general statement for the commit
tee, Senator Simmons said:
ut has at all stages acted with a keen
sense of the extreme Importance Of it's ac-
ton in its effect upon the country and the
successful prosecution of the war; Nor
was it unmindful that those who will have
furnish the larger part of the money to
purchase the bonds for expenditures not
provided for by taxation and also as we
may be called upon to loan to foreign gov
ernments engaged with us in VIZ against
Germany.
your committee was profoundly i'm
pressed with the expediency and necessi.
ty Of broadening and developing our sys.
tenn of special taxation as to present
scientific scheme. logically constructed
to provide superstructure sufficiently
strong and flexible to meet not only ouI
present but our future war needs, and sc
adjusted as to distribute equitably the
necessary burdens of taxation and safe
guard the activities Of the nation by i'm
posing no tax which would not leave thu
tax payer reasonably compensatory re
turn from his investment
The basis of the system proposed BY
your committee is the income and wal
profits taxes. internal revenue taxes upoi
whiskey and tobacco ard certain mod
crate subsidiary levies in the nature o
excise taxes The system presented il
IN form much the same as that in tn,
House. but it has, it is believed, been sys
tematized,- co-ordinated and made NOR
consistent.
LAS the result of these charges it is es
ditional revenue expected will come iron
the income and war profits taxes. In fix
Ing the rates upon incomes and exces
profits your committee kept constantly i
mind the fact that the amount of revenu
derived from these sources would depen
upon the prosperity and activity Of bus
ness and that to impose take
which would tend to discoul
age enterprise and dampen thes
activities would tend to defeat the legis
lative purpose. Moreover, it thought tha
II the rates upon incomes and excess prol
Its were fixed at the highest level ther
might be but little margin left for furthe
Increases in rates"
The report defends the elimination of II
ro-called Lenroot surtaxes on incomes {
over $4,000 added in the House, designe
to raise $s6.0OO.OOO as follows:
IN view or the fact that in addition
the large increase In the normal tax ar
surtaxes upon incomes, the bill proyld,
Tor large increase In the war profits Ia
OF corporations and partnerships and il
ciudes individuals in the scope of tn
tax, and in view of the probability IN
1t will be necessary hereafter to further /
crease these rates in order to provide f
increased war expenditures your commit
tee believes that for the present il is /
advisable to increase the surtax rates h
yond those proposed in the original Hou
bill"
NO RETROACTIVE INCOME TAKE
Regarding the elimination of the Hou
retroactive income taxes on 1916 income
which would have produced sos, OOO, 900. [
report stated:
This tax seemed In principle both m,
ally and economically unsound. Incon
of the last year have paid their taxes a
the balance has either been spent or SO
ed and added to capital. in which form
will yield returns In the ensuing yea
To tax this tax-paid income again is I
only double taxation of a peculiarly
noxious kind but would possibly compe
tax payer to impair his capital and II
diminish government sources of taxat
would be one Of those disturbing ia,