The Washington herald., 1918-09-21

REVENUE BILL
PASSES HOUSE
Greatest Tax in History
Unanimously Voted by
$50 Members.
CHANGES LOOKED FOR
Alterations of War and Ex-
cess Profit Rates Expect
ed in Senate.

By unanimous vote the House yes
terday passed the ss,OO0,O00ooo reve-
nue. bill, the greatest tax measure in
history. The roll call showed $50
members voting for the bill and not
one against it.
The bill as passed was practically
unchanged from the form in which
1t came from the Ways and Means
committee September B. A number
OF amendments were adopted dur
ing the three weeks debate, but none
Of these amendments altered the es-
sential provisions OF the bill nor
changed any OF the rates OF taxa
ton.
The bill now goes to the Senate
finance committee, which already
has begun holding hearings on it. 1t
Is predicted that many OF the sec
tions in the bill will undergo radical
change at the hands Of the Senate
committee, particularly those fixing
the rates of taxation on war profits
and excess profits. Secretary McAdoo
has indicated a desire to appear be-
fore the committee to explain Why
these rates should be changed, and
other treasury officials are expected
to advise the committee concerning
other changes to be made In the bill.
Beer Taxes Cause Deficit
The senate Will be forced to find
some new means OF taxation to make
up the loss in revenue that will be
caused by enforcement of the Presi-
dents order prohibiting the manu-
facture Of beer after December 1. 1t
is estimated that the amount which
will be lost to the government by
this order will be s24O.OOO.0 900 for the
twelve-month period. Consumption
taxes on coffee, tea, sugar and cocoa
appear to afford the only avenue for
the imposition of these taxes to make
up the deficit
Republican and Democratic leaders
in the House Joined in expressing
complete satisfaction with the bill as
finally passed. Majority Leader
Kitchin said:
II am very greatly gratifed with
the passage of the bill and believe
it is the best bill we could have put
through. 1 am particularly pleased
by the utter lack of partisanship and
the unanimity with which men on
both sides of the House worked to
get the measure through. Our esti-
mates convince US that the bill will
raise considerably in excess of 8, s,0OO,-
100000 and I think the work of the
committee has been well done"
Representative Fordney of Mich
igan, ranking Republican member Of
the committee, said:
There are some things in the bill
which I might not have put in If
had been in charge and there are
some things which I might have put
in il were the committee chairman
But I believe it is a good bill and
the Republicans all voted for it with
the understanding that it is the best
bill we could GET
Best Answer to Austria.
The closing speech on the bill was
made by Representative Longworth.
of Ohio, who said that the measure
not only levies the greatest tax ever
levied upon any nation OF the world,
but is equivalent to nearly one-third
of the total cost OF the government
from the time of Washington to the
second term of President Wilson. He
added:
Unanimous passage of the bill will
be welcome news to our allies and cold
comfort to the Kaiser and his satel-
lites, because it shows that the Amer
lean heart is grimly set on carrying
this war through to the finish. 1t is
the best answer to the peace proposal
or Austria. 1t is going to show that
we propose to do business, not with
the tail. but with the head of the
Gachshund, and that we will force the
mercy"
Just before the final vote was Or
oereo. Mr.. Moore of PENNSYLVANIA re-
he"ed MS attempt to have an amend
ment Incorporated in the bill to create
congressional committee on war
expenditures. He was ruled ont or
order by Speaker Clark on two SEN
arate motions.
An amendment offered by Mr.. Good
or Iowa to exempt from the income
tax all income from any source nm
10 $3.50 possessed by officers and men
in this country as well as by those
abroad was voted down. Chairman
Kitchin argued against the amend
ment, saying that the men who go
abroad to fight take an exceptional
risk which is not shared by the men
who remain in this country, and for
that reason were entitled fo tba en-