Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-12-10
SENATE REVENUE
BILL COMPLETED
Senator Simmons Will Open De-
bate on Measure Fixing
Taxation for 1920.
REPUBLICANS AGAINST PLAN
Committee Majority Says This
Years War Profits Should
Be Taxed Heavily.
| REPUBLICANS AGAINST PLAN

be aXed Heavily.
WASHINGTON. December o.-Deba,c
on the $4,000 900. 900 revenue bill will
be opened in the Senate tomorrow.
Senator Simmons, Of North Carolina
chairman of the Finance Committee.
Will start the debate with a detailed
explanation Of the mos; important fea-
lures of the bill. No limit has been
set on the length of the debate and
II Is expected that IL will continue
Tor several weeks. Senator Simmons
VIII lie the report of the majority
members of the committee on the bill
AT the opening OF to-morrow's debate
me report Of the minority. which viii!
he filed by Senator Penrosc the rank
ing Republican. VIII not be ready be.
fore Thursday. Separate dissenting re-
ports from Senator La Toilette and
Senator Smoot will be filed at the
same time.
In the report Of the majority :, com
plete explanation is made Of the new
taxes In the bill and of the difference
between the rates adopted by the SEN
ate committee and those in the bin
as passed by the House
Particuiar emphasis is given by the
report 10 the plan adopted by the ma
1ority Of Limiting the bill! for this year
70 S6.0o0.000,O00 and the 1920 bill 10
he Sf bnS Tnis i, the fea,ure Of
this point:
prospective revenue act have been pro-
foundly affected by two events of con-
time. was the adoption of the rcgula-
tions and legislation, restricting the
production, and sale of alcoholic bev-
erages Beverage taxes under the
the House bill were estimated TO Weld
for the first twelve months sI.135 6OO,-
oGo and approximateiy ssoo,ooo,COo for
time. under the changed conditions, II
is possible TO count upon only $780,
eco; 600 d6a for ot the fiscal ,year lsls-l9lo.
1920 from this source. AT the very
beginning of its labors. therefore the
GSommittee com ,.s, was as, called upon TO face
of approximately $3.50. 600, 900 for the
fiscal year l9lS-I9l9. and Of more than
1920, 'o' '"e "St@' car i'i'-
AIlMISTICE MADE CHANGE f
IN PLANS NECESSARY
When the committee had nearly
compltted Its original task of revising
and perfecting the House bill came
the sudden and dramatic victory of the
allied arms The task of financing the
tSe task OF Of war gaye way
ment through period of reconstruc-
ton and rehabilitation.
amid the feverish activity and patriotic
ferVor of war times are neither SO well
come nor so easily sustained amid the
uncertainties. the depreciating inven-
tories and the falling markets which
are apt TO mark the approach of peace
RepTessive taxes which in time OF war
they diminish the demand for labor
capital and raw material, are for the
very same reason obnoxious and un-
desirable in times of peace.
r
McADOO Is QUOTED
This Interpretation of the financial
significance of the cessation of war
was promptly confirmed in letter ad-
dressed by the Secretary Of the Treas
ury TO the chairman of the committee
under date of Noyember IA, 1918. in
that the existing law is not salts
factory TO the country nor TO the
Treasury. On the other hand, the rev.
enue bill which passed the House is
more stringent than the changed sit
uation will justify.
''At the same time the secretary ex-
penditures of the government during
the fiscal year ending June 30. 1919.
would be in the neighborhood of s1S,-
00O.000,000, and recommended:
That the pending revenue bill be
revised. with view to yielding So
oooooo,ooo payable during the calendar n6a
100000 during the calendar year 1920
ENCESS PROFITS AND
INCOME TAXES REDUCED
I'm order TO reduce the revenues for
1920 still further and bring them down
by Secretary McAdoo; the majority
members eliminated the 50 per cent
war profits tax and reduced the excess
profits tax and the income tax. The
income tax is cut one-third. that is. in
the case of corporations the normal
tax is cut from II per cent to per
cent and in the case OF individuals 1t
is lowered from u per cent and per
cent to S per cent and per cent:
These changes. the report says: vii,
effect reduction of Sl.40o, 600. 600. and
there will be a net reduction of about
in the shrinkage of the beverage taxes.
The committee recommends that there
Ss fer nS 1875. S'"eF changes !" '"s tax '"''S
proposed by tho committee thus be-
comes clear the report states For
the fiscal year 1919 1t is planned TO
raise nearly s4.6oo.ooo.ooo from income
S1.4OO. 100000 from other sources; for
the fiscal year 1920 il is planned to
raise something less than $3,oOO.OOO.,
on0 from nm @ o m"9 Gram
About the general wisdom of such
Drogram we entertain no serious doubt.
1t is imperative that profits and In
come for the year 1913 be heavily taxed.
This is not only necessary. but is eaui
table and in accordance with sound
nubiic policy. The profits realized dur
ing the yenr 1918 are In large part
cts OF the taxpayer: they should con-
tribute heavily before they have been
dissipated or reinvested toward the
payment Of the expenses Of the war. TO
which in large measure they are at
tributable."
a1rotnrMr kaAv hOT CIT