Evening journal., 1918-10-05
SENATE RESENTS
M'ADOO TAX TALK
Gross Incomes of $4,000
and $1,000 to be Low
Limit in New Levy
FARMERS ARE
HARD HIT BY BILL

Committee on Finance, working under
high pressure and filled with resent
nent that their course Of thoroughness
Ind close attention TO the sS,0o0,0O0.OOO
lax bill should have Deen charged as
delay, made yesterday a material
rhsnge in the provisions governing re-
burns OF income tax payers. Hereafter,
Y the change is sustained by the SEN
hte and accepted by the House, all
married men living with their wives
shall make income tax returns II their
gross income exceeds $1,000 and all un-
married men or married men not. liv-
Ing with their wives shall make return
if their gross income exceeds $1,000.
The bill as drafted by the House and
he existing law took into consdera-
ton only such prospective Income tax
payers. whose net returns exceeded
figures given.
The change proposed by the Senate
will increase the number OF income tax
returns under the new law. II will en-
bompass vast class OF earners in in
6ustry whose gross incomes exceed the
p 900 or the $1,000 exemption, but who
By reason of numerous permissible de
Suctlons have not been forced 10 make
My returns.
Farmers in particular WI be hit by
The new provision. It Is the commit
lees belief that a material increase in
the gross amount of revenue return
trom the income tax can be effected
" a broader requirement Is wditten into
The law and thereby a broader oppor-
hunity for scrutiny for returns is fur
IA h,d fh, int
The committee Is now enmeshed in
sne most highly technical portion Of
ahe income tax law. IL ploughed
hrough the maze of technical para
sraphs and wrote In scores OF minor
bhanges.
In addition TO providing for the gross
income to be the basis Of the return
for individuals, the committee also pro
vided that flducaries shall be govern
ed by the same regulation and the ildu-
efary shan make return IN accord
anoe with the gross income OF the es-
tate or trust.
The change wrough In regard 20 the
deductions for amortization OF the
property OF individuals under which
the % per cent. maximum rate Of 4
lovance for depletion was removed for
individuals was extended yesterday 10
cover corporations in like fashion
Trfe provision affectlnI individuals
with regard 10 the non-exemptlon Of
interest on money borrowed for the
purpose of non-tsxable securities lex
cept Liberty Bonds) was extended to
covof corporations.
The committee made no announce
ment IN regard TO suggestions Of a
speedup uttered by Secretary Of the
Treasury McAdoo. IL was evident that
the secretary's structures had offended
the committee members, including the
chairman. They insist as individuals
that under no circumstances could
work Of the importance OF the drafting
OF a revenue law be accomplished as a
hurry up job. Senator Simmons said
that all the committee could accomplish |
in the way Of expedition would be ac-
complished and volunteered no further |
word Of comment on the secretary's |
letter.
Senator Lodge QMass.), the Republi-
can leader, did not look on the situation
m quite the same tolerant light Speak
sng for himself, Senator Lodge made
this statement;
"The Committee on Finance without
exception are as anxious to hasten the
revenue bill as the Secretary of the
Treasury, but we cannot perform Inn
possibilities. The bill was four months
IN the Committee on Ways and Means
and in the House. We have had the
bill twelve days. including two SUM-
days and four days spent on tho suffrage
resolution, which made committee
meetings impossible, so that we have
-f-. 49, 20 Irf Ave N 10 !
20 the bill.
I'VE have been working very hard
on Il, but there are many questions OF
the greatest importance which we must
consider
"The representatives OF the Treasury
Before the committee have a series OF /
perfcctlng amendments, som OF graf
importance and so numerous so that /
there is one offered every few pages. /
II The Treasury itself wishes 10. perfect /
the bfl and feels that It requires fur
ther amendment IL Is not TO be won
dered at that the committee is strongly /
Of the opinion that It would be a de- /
of duty to throw 1t before the
senate undigested. unconsidered and un-
evised.
I'VE shall do the very best we can.
flt IDHlUHittt 10 cAttdiiH OH Hhf AbAcf
nut the bill Is an enormous one. II
uts an amount OF taxation on the
oldsry' such as has never been equal
ID in our history and never been at
smpted by any other country. The
scretary himself did not approve the
normous rate placed by the House
pom excess profits and war profits;
1ey are so large that II seems inevi-
able that they will tend to reduce pro-
rs 10 point which will dry up the
ources Of income taxes as applied both
o corporations and individuals Of the
country In position where they Will
nave little money for dividends, no
snonsy Tor proper reserve and their
xunos % 70 take Liberty Bonds will be so
1spleIed as to have a very serious ef-
'ees on Placing the loans"
hier me Lodge statement ba5 besn
s..en 70 me press Senator SImmons
y. ~. was consulted on the suhiect
ne SAID that Senator Lodge had sno1,os q
lot himself alone In answering thro,,',h :
the press this criticism Of me eorornS. &
Tee BY the Secretary OF the Treasnr,,
His own private comments. howevsr
sayoTed so much OF the temper ana
tenor OF Senator Lodges personal pro-