Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-12-10
SENATE TAX BILL
IS EXPLAINED BY
SENATOR simmons
Effect of Signing ArmiStice
and ENACTMENT of Prohibi-
ton Measure Set Forth in
Exhaustive Report

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Washington. Dec. 9-Effects of the
nation's transition from a war to
peace basis and of prohibition leglsla-
ton 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 report
explains the steps taken to revise the
house bill so as to raise by taxation
next year $5,97S, 900 instead of
$500, 900, 900 as planned by the
house before signing of the armistice
and the enactment of prohibition leg
islation. Proposed taxes in 1920 of
$4,000 100000, the reason for fixing
them at this time and the manner in
which they will be raised also are eX-
planned.
The most distinct changes made by
the senate in the house draft of the
bill are noted bv the committees re-
port as follows:
Elimination of the SIX ner cent cor
poration tax on undistributed corpo-
rate earnings, fixing twenty per cent
maximum on bona fide sales of mines
and oil and gas wells; elimination of
the tax on new state and municipal
bonds. substitution of single war ex-
cess profits tax for the alternative
plan; exclusion or individuals and
partnerships from war excess profits
taxation and reduction of the taxes on
beverages and tobacco
Senate debate on the measure will
begin tomorrow with a statement by
Senator Simmons. A dissenting re-
port on the plan to fix 1920 taxes in
the pending bill will be filed BY Sena-
tor Penrose Of Pennsylvania, for the
republicans of the finance committee
Separate views also will be presented
by Senators Smoot of Utah and La
Toilette of Wisconsin, republicans.
considerable part of Senator
simmons report is devoted to the
nlan for rAducing taxes in 1920 to $4,-
600, 100000
For 1920 the report estimates q re
duction of s1.400, 100000 by eliminat-
ing the so per cent war profits tax.
reduction of the excess profits rates
and reduction from twelve to eight
per cent in the normal rate on indi-
vidual incomes and other corporation
taxes. A further reduction of about
s500,000.0 900. IT was estimated will
occur from miscellaneous sources and
shrinkage in beverage revenues.
Prohibition Cuts Income.
In addition to the tax reductions
due to the fact that the government
now copes with peace instead of war
conditions prohibition is expected to
reduce revenue returns greatly.
Beverage taxes under the house hill
were estimated to ra.sn s1,137 ono. 600
during their first twelve months or
oneration and ss5O,000,000 for the
1919 fiscal year
"At the presentNtime under changed
conditions" the renort states 81 is
possible TO count onlv rnonFs50O, 600
900 for t91S-1919 and $93 .0nO. .000 for
1919-t920 from this source"
.\nalyZing il detail the committees
radical changes. Senator Simmons re-
rort explained that the revised indi-
vidual surtax rates graduated upward
one per cent on each 81 600 over S.
900, arc more equitable than the arb!. |
trarv graduations of the house bill.
The bill retains the house provis-
ions for income taxation of salaries. |
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Continued on Page Two.)