The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-12-14
On Ground No One Should Be
Permitted to Make Dollar
of Profit Out Of War,
TAX ON PROFITS TOO Low
System of Taxation Will Gre
ate New Set of Millionaires
and Grind Down Poor,
Argues Senator.

Washington, Dec. 13.-Taking the
position that no person should be al
lowed to make dollar of profit out
of the war, Senator LaFollette. Of
Wisconsin,, filed in the Senate today a
dissenting report on the $4,000
600 revenue bill now pending.
Senator LaFoilette contends that
tax rates on war profits as fixed in the
bill are entirely too low. He points
allowed by the bill. corporations will
be taxed less than so per cent on their
war profits. The effect OF this sys-
tenn OF taxation, he declares, will be
to create a new set of millionaires and
grind down the poor"
This is the last opportunity the gov
eminent will have to tax the profits of
the war, the Wisconsin senator
argues, and the most should be made
OF It by putting the rates so high that
profits will be no greater than they
were in times of peace.
OBJECTION to the treasury depart
ment's method OF financing the war.
whereby the greater part OF the reve-
made which says thu as borrowing
becomes increasingly more difficult,
higher rates OF interest will have to
be paid and the result will be that
the bonds will find their way into the
hands of the owners OF great wealth.
The result must be- says the re-
port. that for years and generations
to come a small and favored class will
draw their tax-exempt income from
the earnings Of the poor"
IAFOllctte ElucAdaAeA
| Senator LaFollette accompanied his
report with . series Of illustrations,
showing how corporations In various
classes will escape a large part OF
taxation under the rates In tho bill.
He agrees with his republican. coll
leagues on the committee upon the
single point that there should Be no
legislation now to fix taxes for 1890.
but disagrcee with them on their sup
port Of other features OF the bill. The
estimate by Secretary. MeAdoo that
expenditures for thet fiscal year end
ing June 80. 1919. WIN be fs.00t.-
600, 900 is pronounced purely specula-
tive, and Senator IaFoliette says II
this is true ~ene-half of that sum
| should be raised by taxation.
Discussing the tax rates on In
comes and war profits. the report
says: THE argument that the was 10
over and that taxation should there
fore be imme dia-ely decreased has
| little or no weight when applied to
bill when it becomes a law, will tax
incomes received during the calendar
year 1918. and also tax excess AMI
war profits during the same period
Until practically the day OF the sign-
:, ing Of the armistice. we all supposed
that the war would continue for
many months Whatever war profits
would have been made for the calen-
dar year 1918, IL the war had con-
tinued until the end OF the year, will
estimate. still be made during that
dtures of the government be ma
sation of hostilities
THE government needs the money.
the war profits will have been made
and the incomes received during the
taxable year, and there Is no reason
sation OF hostilities should cause us
sources of income below what we
would have levied if the war had con-
| tinued."
| Rccitcs Treasury Estimates.
! Senator LaFollefte recites the treas
! total sum Of nrofits made out Of the
| that the tax rates in the bill will take
about 4s per cent.
The principle that should guide us
! IN framing this bill" continues In
should be allowed to retain a dollar
| -