The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1918-12-24
TAX BILL GOES
TO CONFEREES
Difficult Task in Consider.
alton of 1920 Revenue
Measure Faced.
TWO HOUSES NOT AGREED
Diffr as t Every Section.
Luxury Ts tained-Con-
flicf ar Rates.

Washingt, ec. 24.-Confronted
with a diff : ask, conferees today
began con : ton of the 1920
revenue =. ; lssed by the senate
last night T.. house passed the bill
as a war : sure before the armi-
stice wa : Aed. AS approved by
the lowe ", the bill would raise
$4,000, ,OO6,0oV. during the fiscal year
of 1919.
AS passed by the senate, however,
the revenue bill is peace measure,
raising only $4,000. 100000 in the
present fiscal year. but providing an
additional s4,000,000.000 in revenue
for the fiscal year 1920.
The bill is expected to be in con-
ference for some time.
There are differences between the
house and senate measure in practi-
cally every section of the measures.
Not only are the income and ex-
cess profits sections greatly reduced
in the amounts of money they will
return in the senate bill, but the
profits taxes are levied on a wholly
different basis. Whereas the house
provided a dual system of profits
taxation the senate has combined ex-
cess and war profits in one section.
and it is not certain that house con-
ferees will approve this change.
Keep Luxury Section.
When the senate voted to keep the
luxury and semi-luxury taxes in the
bill. it disposed of any difference that
might have developed in conferences
over these taxes. The only conflict
that can arise is over the rates of
taxation ON Injuries. The house
conferecs are expected, however, to
accept the senate reduction of the
luxury rate from 90 to 10 per cent.
The reduction and the inclusion of
rates for 1920 were recommended by
Secretary McAdoo after the signing
of the armistice.
The senate. just before final pass
age of the bill, rejected substitute
bill offered by Senator LaFollette,
and sustained its previous action In
favor Of an amendment repeating ex-
listing zone rates on publications IN
favor of a rate-of l cent pound
within $50 miles and l and L. cents.
pound beyond.
Riders attached to the bill include
extension of the Reed ''bone- dry
lArs 10, the District Of Columbia.
provisions fbrt one months ipay to
men discharged from the military
forces and am amendment levying
a tax Of 100 per cent. on presidential
campaign funds above $500.
The Thomas amendment levying
tax of 100 per cent. on the amounts
of campaign contributions above $500
probably will go out in conference.
Having voted against 1t on the floor.
the senate conferees -aue not expected
to put up any serious fight to retain
it in the bill.
Sheppard Amendment.
The Sheppard amendment, on the
other hand, probably will stay. This
amendment makes the District OF
Columbia one-dry. If given
chance to vote on this amendment
by it's conferees. the house undoubt-
edly will uphold it. The child labor
amendment. levying taxes of 10 per
cent. on the profits of employers of
child labor over and above all other
taxes, probably will have a difficult
time in conference. The senate con-
ferees are expected to stand by it,
but house conferees will probably op-
pose it. since, obviously. 1t is a pro-
vision from which no revenue is ex-
pected. Referring the question to the
house itself, the conferees probably
would receive instructions to accept
the senate amendment.
Meet During Holidays.
The conferces are scheduled to hold
a few meetings during the holidays,
but there probably will be little real
work in conference before the first
of the year. Just how long the bin
will remain in conference is difficult
to predict. Some members of con-
gress believe it will be near the end
of the session before the conferees
reach an agreement, others prophesy
that an agreement will be reached
before the middle of February.