The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-09-21
WAR TAX
BILL N
SENATE
Measure Passed by House with
Vote of $50 to o Moves
a Step Farther
Ahead.
END BEFORE ELECTION
Finance Committee Of Upper House
Now Revising Measure on
Tax on Profits Para
END BEFORE ELECTION
IBy L. @. Martin, United Press Staff
CORRESPONDENT

.[By L. G. Martin, United Press Staff
Correspondent
WASHINGTON, Sept. 21.-Announc-
ing a determination to get the $s.-
OOO, 900 900 war tax bill through before
the November election If possible, the
senate finance committee today be-
gan revision OF the measure which
passed the house late yesterday, $50
to nothing. Radical changes in some
OF its chief provisions are in prospect.
The clash Of the house and SEN
ate ideas may prevent ffza1 enactment
Of the bill until after elections. House
leaders frankly favor a congress re-
cess in~November and postponement
OF action on the war tax bill until De-
cember 1. Senate leaders are ex.
tremely hostile to this program and
will agree to it only II it become ap-
parent that the measure can't pass be-
fore election any way. The chief bat
tie ground between the houses prob
ably will be the tax on profits. The
senate committee is wholly out OF
sympathy with the house alternative
war excess profits tax plan. Under
this plan the treasury department Is
to levy whichever tax THAT will pro-
duce more revenue-etther a war
profit tax of eighty percent on purely
war profits or an excess profits tax
profits of between eight and fifteen
percent Of invested capital.
The alternative feature OF this plan
is roundly condemned by most mem
bers OF the senate committee, who de-
clare that II two plans can be legisla-
ted into a bill, dozen or thirty
could Just as we'll be provided. The
more kinds OF alternative taxes there
! are, they argue. the more loopholes
are provided for escape from the max
imum that ought to be paid.
Up to this point the senate commit
tee Is almost unanimous, but when 1T
comes to substituting a plan for the
house provision, every member has
different idea Among suggestions
for provisions are:
The war profits eighty to 100 per.
cent and excess profits sixty, any
concern that made both war and ex-
cess profits to pay both taxes, while
those not making war profits pay only
the excess profits tax.
| Put a flat tax or from eight to fif-
| teen percent on all business, regard
less Of whether profits are due to the
| war or not, the rate of taxation to be
determined by the percentage OF prof.
| its in the taxable year as compared
with profits In three pre-war years; no
business to have any exemption OF
any kind.
Increase present excess profits
taxes.
Senator Borah, leader Of the wealth
/ CONSUMPTION group, who last session
urged the imposition Of heavs var
profits tax, predicted today that what.
ever plan is finally agreed on, the
eighty percent tax on war profits
would be in the bill as finally enact
ed.
The luxury taxes seems likely to
remain largely as fixed in the house
bill. They range from ten to twenty
per cent on various articles denomt
mated as Injuries and semi luxuries.
An effort will be made to reduce
the liquor tax of sS gallon to SIS on
the ground that the higher rate will
make withdrawal of whiskey from
bond for sale prohibitive and will pro
duce less revenue than the lower tax
/; AS the bill passed the house, 1t is
estimated 1t will raise in round fig
ures sS.10O,000, 900. OF this S3,200, 900,
600 from incomes; and from all Other
sources including liquor, estates and
Iluxuries s2,523 100000.