The evening world., 1917-08-10
GREAT WAR BUDGET
TAKENUP N SENATE
FOR DEBATE TODAY
call, for S2,OJ6.97oOOO, MOS,
Of Which Comes From In.
comes ana Munitions Profits.


wAFIuNoruN. Aur 90 IN orsr
.rr 'he senate d's,a's aa che ts.oot
.r. 90 waf ,as bm today. senator
mons. Chairman ~ ths ilnaI. cs
committee. declared no committees
rau,on" in revising ths House biil vas
t1 raise Sufficient Foisral revenues
for eEtra war expenses without In
Justice 20 rich or poor. individual or
corporation. and without iniurinv
sources from which the new and fu-
turo taxes must come.
The bill." said senator Simmons.
''prDposes 10 raise a larger proportlJa
of war revenues BY direct taxation
and less by bonds. distributing the
war burden between the present and
future generations" lie pointed out
that nearly $500. .ooo.O 900 Of the new
war taxes are 90 bo obtained frum
Incomes and war profits alone.
Before the war" continued Sena-
tor simmons. Our total expenditures
were between 500. .OOO, 900 and $500.
! 100000 exclusive OF postal costs. II
/ Ls evident that tho expenditures dur
ing this fiscal year will reach some.
thing like 10000 OOO. 900. These condi.
tlons suggest incomes and war pwit'
as tho CHIEF and just source OF rove.
nue TO defray the expenses OF th'
war. Apparently the House did moi
take this view. As tho war profit,
for 1916 exceed $4,000, 900, 900, tn,
House levy OF 5000, 900 from wal
excess profits in tho bill. estimated tC
raise $500, 900. 900. does not meet tn,
manifest equities OF tho situation
Your committee thought that th,
equities OF tho situation required a
least one-half Of the sum proposed tC
be raised should be drawn from in.
comes and excess profits"
Senator Simmons submitted statis
tics said to have been compiled by ]
=. Morgan & Co., showing that forty.
five great corporations alone will pa,
under the proposed committee reyi
sion war profits taxes OF s23s, ,s77, ,O0O
against only s7773s,OOO proposed un
der the House bill.
Senator Simmons declared that tn,
committee proposes a specific wa,
profits, and not an excess profits tax
The House standard Is wholly unsat
isfactory, artificial and arbitrary"
Reasons for increasing corporation
income taxes Senator Simmons CAV
as follows:
The necessity for increased rove
nue. on account OF the large deficienc,
estimates for the Army presented b
the Secretary OF the Treasury afte
the bin was recommitted at my re
, quest, on account OF the Smoo
r amendment TO the food control bill.
"As a partial adjustment OF an el
legged and an apparent discriminate
/, against partnerships. which dis
elimination was acCentuatcd by IN
, action Of the committee in subjectin
: individuals to the war profits tax"
Tho proposed tax on corporation
: undivided surplus, he declared. woul
n more nearly balance the relative con
e ditions as between corporations parl
nerships and individuals with respeC
to incoIDe surtaxes" The House s Dc
cent. gross sales taxes, he said, wei
IA very questionable method of raisln
revenue"
> Regarding elimination OF the Hous
] general 10 per cent, ad valoem tart
levy, Mr.. Simons said:
while the Government would rea
ize from these tariff levies 5000, 200. 90
the domestic producers Of this cour
try would, as n result, collect out
tho people an amount three or foI
n times greater than the amount whiC
a Il is estimated the Government vi
= receive from the tax.