Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1918-11-22
THREAT IS USED BY
TREASURY TOFORCE
1920 PROPOSITION
Simmons Says 800 War
Profit Tax Will Be I'M
posed If McAdoo Is Frus-
trated-G. O. P. Objects
LRepubIican'A. p. Leased Wirel

/ WASHINGTON, Nov. PA detailed
plan for revising the pending war rev.
enue bill, so as to impose taxes and
provide revenues aggregating about
$4,000, 600, 0O0 next year. and $4,000, ,000,-
600 in 1920, in line with Secretary Nc
Adoo's recommendations, was submit
ted today to the senate finance com
mittee by Chairman Simmons.
A decision on the plan was deferred.
| but a vote may be reached tomorrow.
Republican members vigorously op-
posed the proposal to establish 1920 tax
rates in the measure, but Chairman
! Simmons said they were advised thai
if they obstruct passage of the bill with
the majority's plan to provide 1920 tax
alton, a straight levy of so per cent on
war profits, to furnish the government
/ necessary revenues, will be put throuS
Senator Simmons plan to reduce the
/ bill to So, 600 coo 600 for 1919, proposes
retention of the house rates on incomes
and war excess profits. except the Sin
per cent differential on undisturbed
corporation earnings; elimination of
the 20 per cent tax on luxuries and re-
tention of other special miscellaneous
taxes, but at rates not to exceed an in
crease of one-third over those of the
existing law.
Republicans Oppose 1920 Plan
For 1920, Senator Simmons plan
contemplates abolishing the war prot
its tax reduction OF individual and cor
porations normal income rates from y
to per cent and reduction by about
one-third in the excess profits sched-
ule. as now proposed in the revised
committee draft Also the special mis-
cellaneous taxes would be continued at
the 1919 rates.
Both plans for 1919 and 1920 as pre-
sented by Senator Simmons, were said
TO have the approval of the treasury
department and also, generally, of the
democratic members of the finance
committee Republicans indicated gen
eral satisfaction with the 1919 sugges-
tions, but sgain opposed the 1920 eX-
tension. Senator Simmons said the
democratic committeeman are deter
mined upon the 1920 plan, because they
believe it is unwise to fix taxes only for
1919, without informing the business
world of the future program.
1 The committee hopes TO have the bill
I ready soon after the new session OF
Il congress convenes December ,, but the
{ republican opposition and other consid-
erations. it was generally expected may
ldelay its enactment until next January
Liquor Taxes Missed
to s6,000,O00, 600 for 1919. Chairman
Simmons took into consideration thu
prospective loss of about s1o00000, 00'
as the result of the operation of tn,
war time" prohibition legislation
signed today by President Wilson. Hi
plan contemplates raising about 5000
coo. .000 next year from the income an,
war eXces sprofits taxes and the re
naming $1,000 000 900 from the othe
sources in the bill, but at the reduced
Mates suggested.
THE theory upon which the incom
and excess profits taxes are different
lated from the excise. special and mis-
lceIlaneous taxes of the bill" said Nj
Simmons in Il statement issued tonight
is based upon the fact that in the cas-
II of incomes and excess profits, the take
Y for the present fiscal year will be levie'
c upon incomes made during the calen
dar year 1918, whereas, in the case 0
II the other taxes, the increase will aDpl
ie chiefly to transactions taking plac
during the calendar year 1919. or sine
'e the termination of war conditions
: The proposed reduction of S2.0OO,0OQ.
Ie 600 in taxes for 1920, Senator Simmon
II explained. would be accomplished prin
J. cipally through elimination of the wa
II profits tax and reduction from l. to
*. per cent of the rate on the normal cor
"a poratiOns' incomes of individuals, anc
2 together with reduction OF about one
y, third in the excess profits rate. Tn
Is high surtaX rates on individual income
n would run through 1920.