The Washington herald., 1918-05-26
TAX BILL THIS
SESSION SURE
TOBE PASSED
Hope Of Delay Goes Chm
mering as Senators
Disagree.
WESTERNERS INSISTED
Nonessentials, Big Incomes
and Profiteers to Be
Hit Hard.

"A revenue oAdSNAN IN
will be drawn at this session Of
Congress.
Congressional leaders late yesterday
gave up all hope of avoiding it. The
insistence of Western Republican
Senators that there be a tax, and
that II fall heavily on pro1teers,
defeated the attempt to delay ac-
ton until after election.
Senator Simmons, chairman OF the
Finance Committee. sent President
Wilson a letter last night. In It
he said that he had been unable
to reach an agreement that n bill
would be passed. in a special ses-
sion between November 10 and De-
.cenber q, next. 1t was learned that
the President had informed Senator
Simmons, at Fridays White House
conference, that if this agreement
could be reached, the President
would consent to a delay.
GaIIInger Informs sImmohs.
This letter came after Senator CAL
Hnger. Republican leader. had inform
ed Senator Simmons that the Repub-
hcans would not enter into such an
agreement.
came as a result of an ultimatum by
Western Republicans. led by Senator
johnson of California, that II such a
party agreement were entered into.
they would not abide by 1t. -
Senator johnson said he would not
agree to any proposal tending to re-
strict his freedom in fighting for what
he deemed a just rate of taxation on
big incomes and profits
Earlier in the day. the Republican
members on the Finance Committee
chief among whom are Gallinger,
Smoot. Penrose and Dodge-had in
formally agreed to a postponement of
the bill, under the agreement desired
ny simmons. When they learned.
however. they conferred again. Sem
radicals. they conferred again. Sem
ator GaIIinger issued the following
statement in behalf of the Republi-
cans:
Radical westerners Insisted.
Republican Senators recognize
that additional revenue will be nec-
essary in the near future. and for
that reason they are prepared to
consider revenue legislation when
ever the majority thinks it wise to
do so, and they are ready to co-op-
crate to secure the passage Of a
revenue bill without unnecessary
delay.
The radical Western Senators
feared that n the less than two
months allowed under the proposed
agreement. they would be unable to
get their arguments for, increased
rates of taxation before the country.
Majority Leader Kitchin said that
the Ways and Means Committee, of
which he is chairman. will begin
sessions early next week. First will
come public hearings. Secretary or
the Treasury McAdoo probably win
be the first witness. He Is expect
ed to suggest what taxes can be
levied with the least disturbance to
the country's war effectiveness. Next
Will come private manufacturers and
commercial interests, who will make
their cases for exemption from the
tax
IL Is known, however, that Kit
chin has his own ideas on what the
various schedules will be. He has
been collecting all winter the inan-
cial reports of corporations making
great war profits. Fellow members
of the committee have been told
that kitchiu will resist consump-
AAOh NdACs " last. 1sllXuTC taxes
of q new sort are planned.
kitchtn favors, for instance. de-
nninS suit Of clothes costing $40
as q necessity, but a suit of clothes
costing $40 a luxury. He pronoses
that 10 per cent tax be laid on
the excess over $50. Fine furniture,
jewelry. art. musical instruments.
etc, will be under this class. A
full text of a similar tax adopted
in Great Britain has been obtain
ed by Ways and Means Committee.
Non-EssentiaI to be Taxed.
"Nonessential" industries will
bear an exceptional burden. while
excess war profits will be assessed.
care will be used not to lessen the
effectiveness of these plants in
dustrially or in credit. No such
tenderness will be INDUCED toward
nonessential industries, which the
government Is anxious to discour-
age.
1t is probable that the Ways and
Means Committee will adopt the
British system of eighty per cent
slevies on all excess profits. Sena-
tor James Hamilton Lewis. of mi
nois. Democratue whip, is Committed
to a policy of defining "fair
profit" at about eight per cent, and
confiscatfng all sums in excess OF
that.
Senator Kenyon. of Iowa, Is pre-
pared to renew his suggestion that
all persons having incomes over
100000 must forfeit such excess to
the government.
While the initiative of killing the
plan for delay rested with RepubIi-
cans, a fight had been planned
against such a course by three
Western radical Democratic mem
bers Of the Finance Committee. They
were Senators Lewis. of Illinois.
isNuEent. of Idaho. and Jones. of New
Hsxieo. .'.