Every evening, Wilmington daily commercial., 1918-12-07
Z BILLIONS CUT OUT
WAR REVENUE BILL
Measure Coming Up for Debate
Tuesday Opposed b y Fsrub.
licans Led by Penrose.

Washington, Dec. THE War Rev
enue bill, acaled down more than 81,
229, ,026, 900 from the estimates as il
passed the House, was reported to the
Senate yesterday by Chairman Simmons
of the Finance Committee.
1t provides tax levy in 1919 of S.
053,466, 900, as compared with the SS,-
lS2. .4g2 900 levied in the House meas
ure. which passed that body early in
September, when the war was at its
height. Since the signing of the arms
tlce It. was apparent that the needs of
the government would not be as great
as originally estimated. and Secretary
McAdoo recommended that the bill be
revised downward. Accordingly, the
schedules were reduced and many feat
,lres that met with criticism in the
country were eli minated.
While the bill has been reduced more
than two billions. yet it exceeds all
other tax measures in the history of
this or any other nation, and imposes a
levy affecting every individual and bust
ness concern in the country. If the
measure is passed by Congress in the
form as reported it will impose tax of
more than $50 on every man, woman
and child in the United States.
Republican Senate leaders have de-
clarcd that they will prevent the pas
sage Of the bill because It provides not
only for taxation IN 1919, but also speci-
fes that revenues to be collected IN
1920 shall reach about $4,000, 600 900
through q reduction of the proposed
higher war profits and income taxes.
Senator Penrose. ranking Republican
member of the Finance Committee, said
today that the Republicans of the Sqnete
would not consent to the latter fca~lIrc
and unless this was eliminated they
would defeat it by dila,ory tactics
Senator simmons. chairman of the
Finance Committee. is fully advised of
this opposition and Is prepared, If it
becomes necessary. to abandon the bill
and force through a resolution enact
ing the present revenue law. with a
proNiso that the war profits tax shall
be 80 pcr cent. II will not be necessary
To resort 10 tins compromise until Fehri-
ary. by which time II is essential that
the new schedules shall be furnished
to the internal revenue collectors. IF
Il Is seen carly in February that the
Republican opposition Is strong enough
70 he effective. then the above plan will
bc adopted as the only way Of raising
sufficient revenue for next wear
vi, btG itFtIh laws NbnlI TtiSt
fully S4i17, ,267 900, and. with the war
profits tax raised 10 ~ per cent. the re-
turns from the latter source would ap-
proach s2.oo1 O00,nG0. making the levy
for 1919 approximately the same as
carried in the Senate bill
The reduction from the total Of the
old House bill is obtained BY COM
binIng the excess profits with the war
profits BY reduction Of the postal
taxes, and by general reduction Of
most Of the schedules The estate tax
Is reduced from S1i0,O0O,oOO to S75,-
100000, and there are number Of
other slight changes in the bill which
are aimed Ia make il more satisfactory
to the public and lessen those tax bur
dens no longer necessary since the sign
ing Of the armistice
Chairman Simmons said that the
formal report on the bill would not be
presented until next Tuesday The
Senate adjourned until that day, so as
TO afford its members an opportunity
to study the bill before it is formally
taken up as unfinished business Sem
ator Penrose and probably Senators
La Toilette and Smoot, will present
reports. The former will criticise
the m eaSure IN many particulars, but
his hief opposition will be 10 the plan
for hxing OF the taxes for 1920.