Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-08-09

which would alarm business ana cneck
industrial productivity. 1t Is very poor
economy and would hold out a threat Of
uncertainty"
In recommending the graduated war
profits tax upon individuals rs well as
corporations in lieu Of the present eight
per cent. excess profits law, the commit
tee said it's plan is similar to that Of Eu-
ropean countries. where 1t has had mark
ed success.
1--WE must face the possibility, even the
probability" the report stated. of even
higher taxes than are now proposed IN
this country and we must adjust our sys-
tenn so that 1t will work satisfactorily ev-
en- under increased rates. Your commit
tee has not been able to find any satisfac-
tory reason why individuals engaged In
trade and business should not be subject
to this tax (war profts) as we'll as cor
porations and partnerships" Under the
present law, the report stated. inflated
values to patents and trade marks and
watering of corporations stocks makes
evasion Of the revenue law possible. while
the committees new basis is believed to
meet the situation. Senator Simmons also
pointed out that the new plan is a war
profits tax rather than an excess profits
levy.
The new tax Of one cent for each Is cents
paid on parcels post packages was said in
the report to remove discrimination In IA
vor of the railroads and the parcels post.
"In addition to this" the report said,
your committee can see no intrinsic rea-
son why, in this present emergency. the
government should not impose tax up
on this method of transportation, especial
ly in view Of the fact that the rates on first
and second class mail are increased
NO TAX ON LIGHTS OR PHONES.
The House five per cent taxes upon elec-
tricity. gas and local telephone service
were eliminated because 'it appeared to
the committee that this tax would fall
with great severity upon the people of
moderate means as we'll as the poorest
classes, who at the present time depend
very largely in the cities upon gas or cleo
| tricity to furnish them with both light
and heat for cooking as we'll as. in many
cases. with power for running small ma
chinery like that of the sewing machine
The committee felt that a tax of this char
acter ought not to be imposed unless q
point was reached where 1t would become
necessary to tax everything susceptible
to taxation. Light and heat are the very
last things which should be subject tc
ltdxdtlOU. TOT SiIIllldT TcdSOHs, inc COLI
mittee recommended that the tax upor
charges for telephone service to subscrib
ers be eliminated"
PROVIDES FOR 2,006. $40 900.
The measure as revised by the Senat,
committee will raise total of 50. 006. 970. 900
This is an increase of $139. 900 over tn,
bill as passed by the House in May. Tit
additional revenue to be raised the frs
A.. Iii 4,
sources.
Income tax $777, 200. 900; war profits; bee
wines. whiskey. spirits and soft drinks
s21S 100000.
TOBACCO, CIGARS, ETC.
Cigars, cigarettes and tobacco $50, COZ. 900
freight. parcel post. express. passenge
, transportation, pipe lines, Pullman seat
and berths and telegraph and telephon
messages SAG, 100000.
, Automobiles are to yield s4O,000.0O0 ad
ditional; sporting goods 100000 perfume
and cosmetics $1,9OOOOO; propriety medi
D cines 49, 400, 900; and cameras 100000.
Playing cards and other stamp taxes
$32, 0OO, 900; tea, coffee. sugar and cocoa SS6
OOO. 900, admission to movies costing NOR
than % cents and other amusement place
$23 900 900; first class mail matter s.. 00. OOt
. second class 100000 and profits tax o
2 newspapers s7.5O0.OOO.
S TAX ON BEER.
q The beer tax will be 50 a barrel. an II
crease of 25 cents a barrel over the ia
proposed by the House; distilled spirit
$40; dry wines. eight cents a gallon;
= quors. cordials and still wines $1.1O p'
: proof gallon; champagne nine cents ha
u pint, three times the present rate.
9 TAX ON SOFT DRINKS.
n Soft drinks taxes range from thrt
e cents gallon on products sold at u.
d a gallon, to II cents when sold for MOI
j. than 81 a gallon. The House tax of eigl
IS cents per pound on carbonic acid gas W;
= reduced to five cents pound.
;e Chautauqua lectures because of the
g. educational values, are left tax free.
It A large number of additions are mat
f. in stamp taxes, every bank check. dra
e and certificates of deposit drawing !
,r interest requiring one cent stamp.
CORPORATION INCOMES.
he The largest increase aimed at-$T7. 000.(
1f income taxes-is to be accomplished
"a increasing income tax. making the tot
six per cent. instead of two per cent.
to now. and an increase of one per cent.
I'd individual incomes Of over $4,000 year
es wa, n,ou,r, NV
:. WAR PROFITS TAX.
n The next largest increases Is In W
AZ profits taxes-$562. 900. 600 to be raised
al imposition of a war profits tax, inste
n. of the excess profits tax proposed in I
or House bill. In general. 1t would ma
H. the basis of the tax the difference betwe
n the profits of the pre-war period and
a. profits of the taxable year, thus taxi
So by taxation large part of the ext
gains which war has caused.
- Amendments TO the present income t
law proposed by the bill include:
so Exemption Of an additional 500 for ca
es' dependent child under IS, in fixing
ne net taxable income Of the head Of
family; crediting Of war profit tal
Or against the income to be taxed; requ
'es ing brokers to make returns showi
ha profits made by their customers. SO Il
W. the government may check their incom