The Washington herald., 1918-12-22
TAX0N PROFITS,
ALSO INCOMES,
CUT BY SENATE
Revenue Bill Amendments
Adopted by Strict Party
Vote, 81 to 81.
is EFFECTIVE IN 1920
Republicans Agree to Avoid
Fiibuster, Assuring Final
Passage of Measure. -.

Dividing strictly on party lines. the
Senate yesterday adopted amendments
to the revenue bill reducing the tax
rates on profits and incomes for the
fiscal year ending June 30. I99l, so as 90
produce revenue not in excess OF
81. OO0. .eo0 900. The vote. on a motion
by Senator McCumber. Republican. TO
eliminate this feature from the bill.
was thirty-one ayes" TO thirty-seven
noes"
Republican Senators opposed the
provision because they regarded II
as an attempt to legislate on a sub
ject which should be considered by the
next Congress in which the Republi-
cans will have control Democrats
supported il upon the ground that
business should be advised In advance
of the 1873 collections that rates for
the following year would be lowered
Every Republican in the Senate a.
the time the roll was called voted for
the McCumber action, and all the
Democrats voted against IT,
First Party Vote.
This was the first party vote on
the measure since IL has been be-
fore the Senate. In accordance
with an understanding among the
Republican leaders, the disposition
of this feature Of the bill will re-
move any doubt as 20 the final pas
sage OF the measure the Republic
cans having announced that IL de-
feated on the 1850 plan they would
not seek TO delay the passage OF the
measure by nIibustcr or otherwise.
n Senator Simmons Of North Caro-
hna, in charge Of the bill. an
nounced just before the Senate ad-
Journed that he hopes 90 be able 10
bring about the final passage tomor-
row. To this end he succeeded n
getting the Senate 10 take a re-
cess TO 10 o'clock tomorrow morn
ing. and said that II necessary a
night session will be held 10 eject
passage OF the bill
The 1890 plan as adopted cuts out
1 the SO percent tax on war profits
! Tor -ths year lsfe-20, reduces the
rates s.n corporation and individual
I incomes by one-third. ana aiEo
! lowers the excess profit- rates. Tho
! excess profits rates for the year
Iiglg-lg will be 30 per cent and 90
per cent and for 1889 they VIII
| be 20 per cent and 80 er cent The
normal rate on individual incomes
| for the coming year will be L per
] cent CG per cent On the first $4,000.
/ ana under the 1890 revision Il VIII
: be reduced to S per cent. OF 4 per
cert on the first $4,000. The cor
] Doration income tax Is reduced ~
the same method from l. per cent
I Co = per cent
stIrs mp OutcrOpPinss-
The debate on the 1880 feature OF
"a. b1l brought to the surface some
0urcropplrrs OF the feelings enter
ltafn,d by Senator Borah. Of Idaho,
rrI others OF the Progressive Repub-
ncaus arninst the leadership of Sena-
tors Pcnrose. Lodge Smoot and
others OF the "old guard"
Senator Borah pointCdly inquired
/ rh. reason FOR the sudden change OF
/ front on the part Of Penrosc and
| other Republicans on the Finance
Cnmnittce: they had announced when
/ the Democrats wrote this section into
me biu that the would hEht the
measure TO the bitter end" but sew
eral davs later declared they would
\ not attempt TO block the passage OF
| the hul n defeated i'm their efforts 10
knock out the 1850 provisions.
| Senator McCumher. OF North Da-
kota. and Sens tor Townsend. OF Mich
igan openly accused the Democrats
of attemptinE TO gain political ad-
vantage BY putting the ls2o reductions
fn the bill Both declared that an
extra session OF Congress Will be nee
/ sssary and that revision Of the taxes
| could be postponed until the new
| Congress meets.
Senator Simmons defended the 1850
| provisions and quoted from the letter
| written by Secretary McAdOo after
the signing Of the armistice in which
| the reductions were urged.