The Washington herald., 1918-09-24
THOMAS OPENS
SENATE FIGHT
ON TAX BILL
Declares Certain Clauses
Obnoxious to the United
States Constitution.
NOT LEVIED EQUALLY
Violates Principle of Uni
formity; Revenue Chief
ly from Corporations.
NOT LEVIED EQUALLY

Senator Thomas. of Colorado, q
member Of the Finance Committee.
in a studied and carefully prepared
speech yesterday opened the cam
paign against certain featiies of the
new war revenue bill as passed by
the House.
This bill Is obnoxious TO the Con-
stitution OF the United States m not
less than three important particu-
lars" he said. They are the pro-
posed taxation Of Presidential and
judicial salaries, of State and muni-
cipal securities and salaries, and the
alternative methods Of assessing and
levying taxes by the war profits
method or the excess profits method,
which would clothe the government
with authority, as stated in the bill,
to resort to which Of the two methods
Will yield the highest amount Of
taxes
1T may be that the constitutional
principle Of uniformity In taxation Is
seriously jeopardized by the restric-
tion Of these taxes to corporations
only"
Thomas Has support
1t is known that several other mem
bers Of the Finance Committee are
in accord with Senator Thomas IN
questioning the constitutionality of
these features of the revenue bill, and
Senator Thomas took the drst oppor-
tunity Of expressing his views In the
open Senate in order to call attention
to this facrl- pd focus the attention
Of the entire Senate on the bin while
it is under consideration by the
Finance Committee.
Senator Thomas also opposed the
fixing of ratio of SO Is of taxation
and Sc 2-3 Of bond issues 10 meet the
war expenditures.
NO man can challenge the sound
ness of the 'pay-as-you-go' doctrine
nor the wisdom Of adheriIg to II
whenever possible" continued Sena-
tor Thomas. But exceptions to all
rules. whether conduct or finance,
are bound to occur and the present
world war Is an exception to all that
has preceded ii in human history.
We cannot, rich as we are, supply
our government through taxation
with one-third of the money required
for its expenses unless the war ends
quickly. a contingency which legis-
lators cannot assume as probable.
But the government can, in a large
degree, relieve itself of much OF its
credit requirements, as II has done
in the past. as its allies are doing and
as IL must do should Germany re-
main unsubdued a twelyemonth from
now.
Not Against Heavy Tax.
"I 10 not protest against heavy
taxation in times like these. On tbs
contrary. we should impose them as
fairly. as uniformly distributed anc
as extensively as commerce and in
dustry, as production and consunp-
tion, will Justify. But we should not,
in my Judgment, establish a mathe-
matical percentage based on est'
mated expenditures, and make IL:
realization the price goal of our reve-
nue. laws, and this is what we are try
ing to do
''In times OF unprecedented stress
and prodigious outlay it must always
be remembered that the integrity OF
the Industrial fabric in all its sub
divisions 10 as essential to military
success as the army and the navy.
and that to overburden it is to cripple
Il, and to cripple 1t Is to invite dis
aster. As to this we are all agreed:
our differences proceed from the result
We apDEehtnu pEOpOScu SCncfDt1
of legislation question whether
after the first year OF the operation
Of this annual tax roll of 1900, ,oo0, 600
ii win prove efficient and successful
1 am convinced that such an unduly
heavy imposition is not present
necessity"
Senator Thomas referred to the los
OF more than $50. 100000 of potential
revenue through wartime prohibition
and said II would have to be made Ut
from some other source He called Il
folly to impose taxes on the one ihanC
and destroy the basis of IT or tbs
other.
1T in worse than hypocrisy" he
said, ito levy a huge tax on liquors
on hand. destroy their value by for
bidding their sale, and then require
all other forms OF taxable wealth tC
supply the deficit"