Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-12-23
WAR REVENUE MEAsvNG AL
BUT ADOPTED ~ uPeER
HOUSE or cohoRGsA
PROVISIONS AccEprEp
~ STRICT PARTY VOTE
Bitter Fight Over csntrevsrtsd Tax
Rates to Os Continued Thru Ysar
1s2o-War Profits and othsr Taxes
to De Lsvisd-Msasurs Lays En-.
barge on New Enterprise.

Washington, Dec. 23.-By a strict
party vote, the senate late Saturday
adopted all provisions In the war rev.
enue bill prescribing tax rates for 1890
which democrats advocated and repub~
licans opposed. but failed to reach a
final vote on the measure. Its passage
is expected today.
Disposition Of the oontrovcrted 1920
tax provisions, designed to raise about
$4,000. 600 900 as compared with the S.
ooe,ooO'o00 estimate for 1919. preci-
plated long and spirited debate, with
numerous partisan clashes.
Action was taken virtually on a test
vote in disposing Of the provision re-
ducing the individual income tax rate
to per cent in 1920. On motion by
Senator McCumber, of North Dakota.
republican, to strike out this section,
thirty-seven democrats voted to retain
it and thirty-one republican, were re-
corded for its elimination.
Democratic Override Penross.
Later all other 1920 provisions were
adopted with perfunctory viva voce
votes. Senator Penrose OF Pennsyl.
vania, senior republican member OF the
finance committee, offered motions 70
strike out the sections. but these were
bowled over by a chorus Of democratic
nays"
Among the 1920 clauses thus ap-
proved was the provision for reduction
in that year Of the corporation normal
income tax rate from IL to s per cent.
In similar manner the senate adopted
the 1920 war excess profits tax sec.
ton. prescribing excess profits rang
ing from 20 to 40 per cent in lieu of
those from 20 to 50 per cent for 1919
and abolishing the 80 per cent war
profits levy after 1919. An amendment
by Senator Jones Of New Mexico dem-
ocrat- to continue war profits taxes in
1919. was voted down. A to Is.
Disposition Of the 1920 tax question
caused such protracted debate that
Chairman Simmons abandoned plans
for a night session and agreed to ad-
journment until Monday at 10 o'clock
in an effort to expedite passage on
that day. with a night sessc II nee
essary. With this issue out of the
way. senate leaders predicted other
provisions. including the inheritance,
luxury and other sections would be dis
posed OF speedily.
Republican Protects ignored.
In the partisan contest over AK
ing rates at this time for 1920,
Senators Penrose. Townsend OF Mich
igan. McCumber OF North Dakota, and
Smoot of Utah. led the republican at
tack. while Chairman Simmons. and
Senator Smith Of Georgia. defended the
democratic policy. Charges by the re-
publicans that in so doing, political adj
vantage was sought with a view to
avoiding an extra session OF the next
congress. in which republicans will
have a majority. were met by asser-
tons from the democrats that republi-
cans desired to force an extra session
A suggestion by Senator Borail, Of
idaho. republican. that there was
some mystery" about the changed at
t:tude Of republicans, caused spirited
discussion.
Senator Penrose replied at first many
republicans were disposed to defeat the
BILL but finally agreed that as the gov
eminent needed the money. its prompt
passage was desirable.
Extra Session Inevitable.
During the debate there were re-
publican predictions that an extra SEES
sion OF congress was inevitable.
In supporting his amendment for
continuing Of war profits taxes next
year. Senator Jones declared the
committees proposal II finally en-
acted would be an absolute embargo
on new enterprises and prevent the
development Of the country at the very
time when business should be most en-
couraged. He did not believe q dollar
would be invested in the western min..
ing industry II the committee provi-
sion was adopted.
In opposing the amendment. Senator
Simmons said It had been presented
before the committee by the New Mex
leo. senator and after much discussion.
rejected.
Those supporting the Jones amend
ment were Senator'S Ashu1st. Fletcher.
Henderson. Johnson OF North Dakota,
Jones Of New Mexico. Kendrick. King,
Myers. Phelan. Pittman. Shafroth,
Sheppard and Thomas. democrats and
johnson Of California and McNary. re-
publicans.