Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-12-20
PROPOSE REPEAL
Continued from PAGE Cne)

A substitute for the commit - =
bill proposing large tax increases.
principally ON big incomes and var
excess profits, was introduced late to-
day by Senator LaFoilette Of WILSON,
sin. Republican. who is expected 10
make lengthy address tomorrow in
its behalf
Senator Jones Of New Mexico. Dem
cc1at. plans to advocate an am md
meEt 10 continue war profits taxa
ton through 1920, and Senator Thom-
as Of Colorado. Democrat. is expect
ed to propose elimination Of the m
heritance tax provisions with Sena-
tor Kenyon of Iowa and others pre-
pared TO urge rcinserticn of the 20
Eer cent. tax on Injuries. Besides
these questions thar If prescribing
1920 tax rates. opposed by Republi-
cans remains for disposition Disp" sal
of thc second class postage section
today was regarded as removing Il
considerable obstacle from the U!'l's
path. Senator's Hardwick Of GcCv-
gia and Mcclellan of Tennessee led
the fight on tie committee an:ri-
ment, which was defended by Sem
ator SToot Of C!ah.
Opponents charged that second
class publications arc granted u large
government mail subsidy. while Sem
ator Smoot declared The present zone
system tends to foster undesirable
sectiona.ism and would drive many
small publications out Of business. On
the roll call on adoption Of The COM
mittee amendment 10 Democrats and
Il Republicans supported the new
periodical rates with Is Democrats
and scYen Republicans in opposition.
The substitute bill Senator La Fol
iette will advance tomorrow proposes
mainly large increases in the war eX-
cess profits rates and individual in
come surtaxeS. In lieu Of the bins
levy Of 80 per cent. on the excess OF
corporations net income over credits
and under 20 per cent OF invested
capital, Senator LaF'Oliettes bill pro
poses 3S per cent. on profits under Is
per cent. OF invested capital Instead
cf the bills tax OF GO per cent. on
profits in excess OF 20 per cent. the
Wisconsin member proposes tax OF
60 per cent. On profits between IS and
20 per cent and 10 per cent. on thos..
over 20 per cent. The Larollette sab
stitutc also proposes to retain the l.
per cent. tax on corporation incomes
but would cut the individual. norma
rate from 1" to 20 per cent. and Sc
cure the bulk Of individual! income
revenue from surtaxes. lii lieu Of the
bilrs surtaXcs ranging from 7 per
cert. on incomes between $4,000 and
$4,000 to G5 per cent. on those 1ver
100000, Senator LaFoliettc's sab
stitute proposes graduated surfaces
ranging from FIVE per cent on in
CONS between $4,000 and $1,000 to rs
per cent. on jncomcs over 100000
From individual incomes Senator La
Toilette estimates that his bill would
raise $1.7S4. 100000 compared with 81
49,, 900, 900 estimated under the pend
ing measure. He made no estimate of
revenue from his proposed increases
on war excess profits. but in his re-
cent minority report advocated secur-
ing about double the s2.400. 100000
proposed BY the bill from that source.
In disposing Of the miscellaneous pro-
visions today the Senate adopted
committee amendments TO give mu-
tual insurance companies the same
tag privileges as life insurance cIm-
panic, basing their taxes On net in
come instead OF on policies issued.