Arizona republican., 1918-12-10
REVENUE BILL
CULLED DOWN
OVER BILLION
SAYS SIMMONS
Defends 1920 Schedule
Favors Constantly Re
ducing Taxes Based on
War Profits-Many Huge
Levies Lowered-Incomes
Graduated Upward from
$1,000

Republican A. p. Leased Wlrel
WASHINGTON, Dec. EFFECTS of
the nations transition from a war to
n peace basis, and of prohibition legis-
lation on the present and future prob
lens Of taxation, are outlined in the
senate finance committees report on
the revised war revenue bill, filed to-
day by Chairman Simmons. The re-
port explains the steps taken to revise
the house bill so as to raise by taxa
tion next year S5,97S,466,000 instead of
$500, 600, 600, as planned by the house
before the signing of the armistice,
and the enactment of prohibition legis-
lation. Proposed taxes in 1920 of S4,-
O00, 100000, the reason for fixing them
1T this time, and the manner in which
they will be raised, also are explained.
The most distinct changes made by
the senate in the house draft Of the
bill are noted by the committees report
as follows:
elimination of the six per cent cor
pOration tax on undistributed corporate
earnings; fixing a 20 per cent maximum
on bona fide sales of mines and oil and
gas wells; elimination of the tax on
ne wstate and municipal bonds sub
stitution of a single war excess profits
tax for the alternative plan; exclusion
of individuals and partnerships from
war excess profits taxation; and re-
duction of the taxes on beverages and
tobacco"
Senate debate on the measure will
begin tomorrow, with statement by
Senator Simmons. A dissenting report
on the plan to fix 1920 taxes in the
pending bill, will be filed by Senator
Penrose of Pennsylvania. for the re-
publicans of the finance committee.
Separate views also will be presented
by Senators Smoot- of Utah and La
Follettee of Wisconsin, republicans.
Reports On 1920 Taxes
\ considerable part Of Senator Sim
mons report is devoted to the plan for
reducing taxes in 1920 of $4,000, 00G000
THE country has a right to know how
soon and in what degree the burden Of
war taxes can prudentiy be reduced" !"
the report says. During this period
Of re- construction, business particular
ly new business, is entitled to go for
ward without the burden of an so per
cent tax on war profits. In time of
peace the existence of an so per cent
profits taxes would be an absolute evil,
for the perpetuation Of continuance of
which no sufficient reason has or could
be given
Fer 1920 the report estimates a re-
duction Of 81 l,4O0,o0o, 900, by eliminating
the so per cent war profits tax, reduc-
tion OF tho excess profits rates; and
reduction from y to eight per cent. in
the normal rate on individual incomes
and other corporation taxes. A further
reduction OF about $500, 600, 900, it was
estimated, will occur from miscellan-
ccus sources and shrinkage in beverage
revenues.
"The main outline of the program
proposed by the committee, thus be-
comes clear" the report states. For
the fiscal year 1919, it is planned to
raise nearly s4,6OOOO0 OOO from income
and profit taxes, and something over
S1,400, 100000 from other sources; for
the fiscal year 1920, 1t Is planned to
raise somewhat less than $4,000 900 00O
from income and profits taxes, and
about 5 St,oOO,U00,0U0 from other sources
About the general wisdom of such a
program We entertain no serious doubt
It is imperative that profits and income
for the year 1918 be heavily taxed. This
is not only necessary, but it is equit-
able and in accordance with sound
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