The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-12-14
FEDERAL TAX
BILL REVISED
financial Committee Finally Re
ports Estimates to
Senate.
TWO BILLIONS CUT IN
xs... PROPOSED MEASURE
Sue EaS "a /.
Lower Body Did Figuring While
5 Struggle Was Still Going on.
Simmons Explains Necessity

oation's transition from war Dasls
and of prohibition legislation on the
present and future problems OF taxa
ton are outlined in the senate Illialice
committees report on the revised wal
revenue bill, filed today by Chairman
SAamons. -.
The report explains the steps taken
to revise the house bill so as 10 ralse
nv taxation net year S5,97o, wv
instead of $500, 100000, as planned
nv the house before the signing or the
arnaistice and the enactment OF pro-
hibition Hesitation Proposed taxes
in 1929 Of $4,000, 100000 is the reason
for fixing them st this time and the
manner in which they will be raised
also are explained.
The most distinct changes mace s'y
the senate in the house draft OF the
{ bill are noted by the committees re-
port as follows:
Elimination of the per cent. cor
poration tax on undistributed corpor-
ate earnings, fixing a 20 per cent.
maximum on bona flde sales OF mines
and oil and gas wells, elimination OF
fhe tax on new State and mun1c Pal
bonds:- substitution of a single war
excess profits tax for the alternative
Senate debate on the measure WILL
begin tomorrow with a statement oy
Senator Simmo ons 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
publican finance committee. Separate
views also will be presented by Sen
ators Smoot Of Utah and La Toilette
Of Wisconsin, Republicans.
A considerable part Of Senator Sim
mons report is devoted to the plan
f0r reducing taxes in 1926 to S4,O00,-
zoe, ,0ee.
'The country has right to know
how soon and in what degree the bur
den of the war taxes can prudently be
reduced" the report says
Z During this period OF reconstruc-
ton business, particularly new busl-
ness, Is entitled to go forward with
:ioilt the burden of an 80 per cent. tax
on war profits In time Of peace the
existence Of an so per cent. profits tax
: would be an absolute evil, for the per-
Detuation or continuance Of which no
sufficient reason has or could be CIV
an."
For 1925 the report estimates a re-
auctien oe s1.4o0, 100000 by elini-
hating the sc per cent war profits tax,
reduction Of the excess profits rates
and reduction from u to 8 per cent.
in the normal rate on individual IN
comes and, Of the corporation tax.
further reduction of about $500, ,000,-
zoe, it was estimated, will occur from
miscellaneous sources and shrinkage
IN beverage revenues.
'oThe main outline Of the program
proposed by the committee taus be-
comes clear" the report states. For
4he fiscal year 1919, it is planned to
raise nearly $4,000, 600. 600 from In
come and profits taxes and something
over s1,4Oe, 100000 from other
sources; for the fiscal year 1920 it is
planned to raise somewhat less than
81, 600, 10000 from income and profits
taxes, and about $1,000, 100000 from
other sources. About the general WIS
dom of such a program we entertain
no serious doubt. 1t is imperative
that profits and income for the year
1918 be heavily taxed. This Is not
only necessary, but it is equitable IN
accordance with sound public policy.
The profits realized during the year
1918 are in large part war profits;
they are now in the pocket Of the
taxpayer; they should contribute
heavily before they have been dis
sipated or reinvested toward the pay
ment of the expenses Of the war to
which in large measure they are at
tributable.
But it is equally important that
these special taxes should be reduced
as the occasion which inspired and
justified them recedes into the past.
To fail adequately to tax the war
profits of 1918 would constitute
manifest miscarriage of fiscal justice.
Not to provide now for the reduction
of the war profits tax would be equal
ly inexcusable.
In addition to the tax reductions
due to the fact that the government
now copes with peace instead OF war
conditions, prohibition is expected 10
reduce revenue returns greatly.
Beverage taxes under the house
bill, were estimated to raise sl.l3I,-
90. 600 during their first II months OF
operation and ss5G,oOo,ooo for the
1919 fiscal year.
..At the present time under chang
ed conditions" the report states. II
is possible to count only upon $500
900 900 for 1918-1s19 and s93. .Ooo,-
600 for 1s1s-1920 from this source.
Analyzing in detail the committee
radical changes, Senator Simmons re
mort explained that the revised lnol-
yidual sur tax rates graduated up
ward l per cent. on each $1,000 over
1000 are more equitable than the ar
bitrary graduations of the house Dill
The bill retains the house provisions
for income taxation Of salaries, m
cluding those possibly of the presl- |
dent and federal judges. legality OF
which. the report stated, is left 20 the
courts if the question is raised. Ihe
report. however. says that the house
cJs1se for federal taxation OF new