The Birmingham age-herald., 1918-11-22
REVISION PLAN FOR WAR REVENUE BILL
 SENT 10 SENATE
Will Provide Revenues Ar gregating $6,OOO,OOO,OOO for 1919 and S4,000,000-
 900 in 1920.

Washington, November 21. A detailed plan for revising the pending war revenue bill so as to impose taxes and pro- vide revenues aegregating about $6,000,00o,oO0 next year and $4,0O0,000,00o in 1920, in line with Secretary McAdoo's recommendations, was sub mitted today to the Senate finance committee by Chair man Simmons.
 A decision on the plan was deferred but a vote may be reached tomorrow. Republican members vigorously opposed the proposal to establish 1920 tax rates in the measure, but Chairman Simmons said they were advised that if they ob- struct passage of the bill with the ma jority's plan to provide 1920 taxation, a straight levy of 80 per cent on war prof it's, to furnish the government necessary revenues, will be put through
 Senator Simmons plan to reduce the bill to s6,o00, 900 for 1919 proposes re- tention of the House rates on incomes and war excess profits, except the per cent differential on undistributed cor poration earnings: elimination of the 70 per cent tax on luxuries and retention of other special, miscellaneous taxes, but at axrnRd increase Of one-third over those of the existing law. WOULD ABOLISH PROFITS TAX
 For 1920 Senator Simmons plan con- templates abolishing the war profits tax, reduction of individual and corporations normal income rates from 12 to per cent and reduction by about one-third in the excess profits schedule as now proposed in the revised committee draft Also the special miscellaneous taxes would be continued at the 1919 rates.
 Both plans, for 1919 and 1920, as pre- scented by Senator Simmons, were said to have the approval of the treasury department and also, generally, of the democratic members of the finance com mittee. Republicans indicated general satisfaction with the 1919 extension. Sen ator Simmons and the democratic com mitteemen are determined upon the 1920 plan because they believe it is unwise to fix taxes only for 1919 without in forming the business world of the future programme.
 The committee hopes to have the bill ready soon after the new session Of Congress convenes December 2, but the republican opposition and other consid- erations, it was generally expected, may delay it's enactment until next January.
 CONSIDERS PROSPECTIVE
 In his proposal for reducing the bill to $6,oOO, ,O00,0 GOO for 1920, Chairman Sim mons took into consideration the pros ,pective loss of about s1,000.0o0000 as the result of the operation of the wal time prohibition legislation signed to- day by President Wilson. His plan con templates raising about s5.o00. 100000 nex' year from the income and war excess profits taxes and the remaining $1,OO0, ,O00,. GOO from the other sources in the bill but at the reduced rates he suggested.
 'The theory upon which the. income and excess profits taxes are dffferentiat ed from the excise, special and miscella- neous taxes of the bill," said MT. Sim mons in a statement issued tonight, ''is based on the fact that in the case o1 incomes and excess profits the taxes fol the present fiscal year will be levied upon incomes made during the calendar year 1918, whereas in the case of the other taxes the increase will apply chiefly to transactions taking place during tht calendar year 1919, or since the termina ton of war conditions"
 The proposed reduction of s2,000, 0A0O' in taxes for 1920. Senator Simmons ex plained would be accomplished princi pally through elimination of the wal profits tax and reduction from 12 to per cent of the vote on the normal in comes of individuals and corporations; to gether with reduction of about one-thirt in the excess profits rates. The higf surtax rates on individual incomes would r,if, thro,lgh 1920.