Pine Bluff daily graphic., 1918-11-28
REVENUE BILL
 AGREED TO BY
 FINANCE COM,
Federal Tax on Automobiles and Motorcycles Is
 Eliminated.
S36, ,000,O 900 ELIMINATED
Internal Revenue Bureau Made Plans for Collect
 ing Tax Under Law.

Washington, Nov -7.--Revision of the war revenue bill was substanti- ally completed tonight by the Senate Finance Committee Amendments perlecting the program of raising SIX billion dollars in 1919 were adopted and by strict party vote the com mittee formally approved Chairman Simmons plan to raise four billion dollars in 1920 through reduction of individual and corporation income rates, elimination of the war profits tax and the reduction of the excess profits rates.
 In further revision of the war re- venue bill the Senate Finance Con- mittee today struck out entirely the proposed federal license tax on use of automobiles and motorcycles which ranged from ten to fifty dollars an nually in the house bill. according to horsepower and from five to twen- ty-tve dollars under the plan pre- viously adopted by the Senate com mittee
 This eliminated $36,000G00 in es- timatcd revenues under the senate '"'C' anu obo't p to.oVVVVV tAG .IOASS had planned to raise from this source The tax on sale of automobiles how- ever. remains in the bill.
 Over the protest of Republican com smittee members the Democrats today began work on the tax provisions for 1920. Chairman Simmons pre- sented his 1920 program which pro- vides for reduction of the eXces pro- fit rate to about third more than those under existing law, elimination entirely of war profits taxes continua- tion of the special miscellaneous tax eS as now contained in the bill at reduced rates and from F to 8 pc. cent with a rate of only four percent applying to individual incomes up to $600O
 This situation which became known today, after conference Of treasury officials. means that unless congress expedities revenue legisla tion next week the treasury will pro ceed with the task of collecting only abou: four billion dollars in taxes next year, which it is believed can be raised under the existing law. in- stead of the six billion expected to be levied under the new bill now be- ing revised by the Senate Finance Committee.
 The determination to proceed with collections under the old law deve- lops the question of what would oc- cur should the new law be enacted, and the old statue consequently re- pealed after January 1. Aside from resulting confusion over return forms it is suggested that it might be prob lematical whether additional taxes could be collected on retroactive basis from payers of excise and other taxes due currently from month to month
 Representatives of business inter- ests in conference today with revenue bureau officials also raised the ques- tion of the cohstitutionality of re venue bill enacted after January l, levying taxes on business done the previous year
 With the seven Republicans of the committee voting solidly in opposi- tiOn. the ten Democrats adopted chair man Simmons plan for 1920 to re- duce the normal income tax rate for individuals and corporations from 12 to 8 percent, to abolish the 80 per cent war profits rate after 1919, and to reduce the excess profits rates of 1920 to minimum of 20 percent and a maximum of 40 percent or two thirds of the 1919 rate.
 Although the committee now prac- tically has completed the bill. it be- came known today that the internal revenue bureau has almost despaired of the enactment of the measure be- fore January 1st, and has made full plans for collection of taxes under the old law, by which it is estimated only $4,00O 900, ,O00 would be produced next year.
 The old law which remains effec tive until repealed hy the new re- venue bill, specifically enjoins the commissioner of internal revenue to prepare forms for use of taxpayers to report their incomes, profits and other taxable matters between Janu- ary 1st and March 1st.
 Both the program for 1919 and 1920 taxation, except for minor amendments to be made when the committee reconvenes next Friday. virtually were completed today. Al ter Fridays meeting reprint of tue bill will be made and Chaiman Sim mons plan to report it to the Senate T next week; The RsguDlicsns ans
 Continued on page four'