Arizona republican., 1917-09-05
SENATE DEFEATS
 PLAN ID INCREASE
 TAX ON PROFITS
Republican A. p. Leased Wire]

WASHINGTON, Sept 4.-In rapid succession today the senate bowled
 over by overwhelming majorities three more proposals from the group of sena- tors seeking to increase the levies on
 war profits in the tax bill
 An amendment by Senator Hollis 10 tax war profits only at higher rates and to strike out the finance committees s new clause levying S428,000,000 addi- tlonal on ordinary excess profits, was rejected, 57 to 12. Then without debate, one by Senator La Toilette to fix flat rate of so per cent designed to raise not less than s1,S00,000,000 on war profits. was beaten 50 to IS. The minimum flat rate proposal of 50 per | cent Of the high tax group presented hv Senator Hollis was voted down 52 to 1S
 with these setbacks. the fight to sub stitute a flat rate for the graduated system of the excess war profits sec tion virtually ended and the contest entered q new stage. Before the final vote Dn the war profits section, set for | late tomorrow, the high tax faction plans an effort to raise the graduated rates now in the bill Today's session <, was marked by spirited tilts in the l last stand Of the nigh tax advocates to ! impose 2 flat, general rate on war l profits The group still hopes to in
 crease the tax icvs by raising the
 graduated -ates, but finance commit 1 tee leaders are confident the bill will
 stand substantially as now written 1 providing for levy of about one third on war yrofits, or an increase of Sl,-
 )6O,OOO,O0O over the present revenue of l 5226, ,0G0, 900.
 1 Senators Hollis and Kenyon led the
 discussion for the high taxers. with I Senator Srnoot leading the defense of the finance committees draft. A bill l totaling s4,000, 100000 was urged by
 Senator Hollis, who insisted there
 should be flat levy of at least so per cent on war profits.
 Senator Kenyon scored the senate fcr voting down the increases proposed He spoke os Unreasonable profits" and said inadequate conscription of wealth and imposition of irritating consump i tiOn taxes on the masses of the people ! would be responsible for the unpopu-
 larity of the bill.
 Senator Shoot attacked the Hollis 1 plan to exempt normal but extremely | large excess profits from taxation, as-
 serting many millions of ordinary ccr- ! pOratt earnings would escape taxation
 by the proposal
 In the three votes today the high
 tax faction both gained and lost sup
 porters. Their highes st record of 20 votes was made yesterday on the 7( per cens war profits tax proposal of
 Senator La Toilette. Division of senti- | mant in their own ranks regarding the
 smaller flat rates 9 lG excess profits l taxation today caused slight losses i Senators Chamberlain, Kendrick, My CTS and Phe!an were new members 1 registered on the side of those seeking to amend the bill Senators Chambefs | lain, Myers and Phclan voted to tax
 war profits alone at higher rates ana | exempt ordinary excess profits. Sena
 tor Kendrick supported the final mini l mum 50 per cent proposal of Senator 1 Hollis. On the later Senators Boraf 1 and Trammell voted with the majoritJ because the bill contained a sixty pel 1 cent maximum provision