South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-12-06
REVENUE BILL
Is REPORTED
BY COMMITTEE
Facing a Stormy Journey
Through Senate, Measure is
Enlarged So As to Extend
Throughout 1920.
international News Service:

WASHINGTON, Dec. 6.-Facing
a stormy course through the senate,
and with its passage before the end
of the present session in doubt, the
1890 revenue bill was reported to
the senate by the finance committee
today.
The bill bears little sem blance to
the form in which it passed the
house. The necessity for converting
ii from a war revenue bill, to a re
construction tax bill. due to the sign
ing OF the armistice. while il was in
preparation by the finance commit
tee, dictated many sweeping changes
in the measure.
AS reported TO the senate today
the bill fixes taxes dot only for the
fiscal year 1919. but also for the fol-
lowing year. In it's present form the
bill raises six billion dollars in 1919
and $4O0, 900, 600 in 1920.
Extend Measures Provisions.
As it passed the house the bill
dealt only with the fiscal year 1919
and was designed to raise the rec
breaking sum OF eight billion in
taxes
The prospect of delay. even be
yOnd the present session Of congress.
grows out Of the action OF demo-
cratic members of the finance COM
mittee in tanning into the bill over
the protest of republicans. provisions
fixing taxes for 1920, which are rec
commended by Sec'y McAdoo.
Democrats Defend Action.
The democrats defend their action
on the ground that the present con-
gress Will make appropriations for
the fiscal year 1920 and should
therefore make provision for meet
ing those appropriations. The fur
ther argument is advanced that
American business has a right TO
know in advance the taxes it will
be expected to pay. The republicans
see in this action, however. an at
+ tempt to embarrass the next con-
/ gress. of which they will be in con-
troll. by providing insufficient funds
10 meet the needs Of the govern
ment.
Republicans were threatening on
+ every hand today TO delay passage of
the bill until they gain control OF
both houses This course would have
+ the added advantage, from their
point OF view Of compelling the
president 10 call special session of
. congress soon after March 4, when
the 65th congress comes to a close.
In framing the war excess profits
tax and the individual income tax
the committee kept constantly in
mind the necessity for catching war
profits Immediately, il they are TO
be caught at all. and framed its
levies accordingly Deducting the
specific exemption of $4,000 plus s
percent of the invested capital
American corporations Will pay a
tax Of 80 percent on the amount
OF their net income not in excess
OF 90 percent Of their invested CAPT
tai
A so percent tax is levied on the
net income in excess OF 90 percent
of the invested capital. All profits
/ in excess of so percent are gathered
into the public treasury by a pro-
vision that dictates a roundabout
mathematical calculation which al
ways arrives at this result.
Excess Taxes 20 Percent.
These taxes are for the fiscal year
1919 For the fiscal year 1920 the
excess taxes are 90 percent Of the
net income not in excess Of 20 per
cent Of the capital and 40 percent
Of the profits above 90 percent.
The normal tax on individual in
comes is fixed in the bill at u per
cent for 1919 and 6 percent in 1920
The exemption provided is $1,000
for single and $4,000 for married
men.
The sur-taxes run in this fashion
One percent on incomes Of 5000
20 $1,000
Two percent on incomes Of 5000
20 $4,000.
Three percent on incomes o
$4,000 TO 10000
-Four percent on incomes Of SO.
coo 10 $4,000.
Until incomes OF 100000 ar
reached an additional I percent
charged for each additional $4,000
The scale from that point follows;
. CONTINUED on PAGE FOUR)