South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-11-28
OF
WAR REVENUE
BILL ENDED
Amendments PerfeCting the
Plan for S6,0O0,000,G
in 1919 are Adopted
by Committee.
Associated Press Service:

WASHINGTON, Nov 27.-Revi-
sion OF the war revenue bill was
substantially completed tonight by
the senate finance committee.
Amendments perfecting the program
of raising six billion dollars in 1919
were adopted and by strict party
vote the committee formally ap-
proved Chairman Simmons plan to
raise four billion dollars in 1920
through reduction Of individual and
corporation income rates, elimina-
ton Of the war profits tax and re-
duction of the excess profits rates.
With the seven republicans Of the
committee voting solidly in opposi-
ton 10 democrats adopted Chair
man Simmons plan for 1920 70 re-
duce the normal income tax rate for
individuals and corporations from
u to percent, 10 abolish the so
percent war profits rate after 1919.
and to reduce the excess profits in
1920 to a minimum Of 90 percent
and a maximum of 40 percent or
twO-thirds of the 1919 rate.
Despair OF Early Passage.
Although the committee now prac-
| tically has completed the bill II
became known today that the inter
nal revenue bureau has almost de-
SPARED OF the enactment of the
measure before Jan. / and has made
full plans for collection OF taxes
under the old law by which it is es-
timated only $4.O00,O0O,O0O would be
produced next year.
The old law. which remains ef-
fective until repealed by the new
revenue bill specifically enjOins the
commissioner of internal revenue TO
prepare forms for use OF tax payers
10 report their income profits and
other taxable matters between Jan.
1 and March l.
Daniel Q. Roper. revenue commits
sioaer. also explained today that he
would be forced 10 administer ex-
else floor, business. transportation
and othe- taxes collecta BILE monthly
under the old law after Jan. 1. il the
new measure is not finally enacted
/ by then. The collection Of addition
al sums. resulting from increased
rates under the new act, or repay
ment of taxes collected under sched-
ule repealed by the new act. then
would precipitate much confusion.
Programs Completed.
Both the programs for 1919 and
1920 taxation. except for minor
amendments 20 he made when the
committee reconvenes next Friday.
virtually We're completed today. Aft
I or Fridays meeting a reprint of the
bill Will be made and Chairman Sim
mons plans 10 report it TO the SEN
ate some time next week. The re-
/ publicans announced their intention
TO oppose inclusion Of 1920 rates in
the bill and may file a minority re-
port
/ Chairman simmons plan for 1920
revenue was adopted without
change. It's provision for oil for
reduction from . TO percent in the
normal rates on individual incomes
also provides that the rate shall be
+ six percent in 1919 and four percent
+ in 1920 on the first $4,000 of taxable
f income.
Chairman Simmons said Sec'y Nc
Adoo does not approve the 1920
program in its entirety as he desired
higher normal rates to continue on
both individual and corporation in
comes and also opposes continuation
. Of the excess profits taxation plan.
Among less important decisions Of
the committee today were rejection
. Of proposals by Sen Smoot 10 i'm
pose q one percent tax on gross re-
tail sales and 20 exempt corpora
tions with less than $1,000 600 cap
ital from excess profits taxes. The
. committee also consider requests 20
abolish the floor or stock taxes on
tobacco. but decided finally upon
their retention.