The sun., 1918-09-21
HOUSE PASSES
$S,O00,O0O,OOO
REVENUE BILL
Loss of Taxes on Beer and
Imitation Beer May Cut
Receipts $8OO,OOO,OOO.
VOTE is UNANIMOUS
Worlds Biggest Measure of
Kind Likely to Be Weeks
in the Senate.
VOTE IS UNANIMOUS
Special Despatch to TBF Sex.

WASHINGTON. Sept. 20.-With $50
members voting for 1t and not one
against 1t the revenue BILL the biggest
measure of the kind the world has
ever known. was passed by the House
this afternoon. a day ahead of sched-
ule. The bill now goes to the Senate,
but probably will be several weeks in
tho Finance Committee there.
Only one amendment OF any conse-
to-day. 1t provides for allowing oil
and similar business projects a "reas-
enable amount to be deducted from
ret income before imposing income
and profits taxes on the theory that
the supply is being deprecated con-
tinually.
In addition to this reasonable
amount" which is to be determined by
the Government, an amendment was
adopted providing that actual oil pro-
ducers and prospectors shall be al
lowed to deduct 10 per cent. of the
value of the oil taken out in each tax
stle year before taxes shall be i'm
posed.
Expected to Raise $4,000. 100000.
As the bill passed it Is expected to-
raise more than $4,000, 100000 in a
twelvemonth period. Whether this pre-
detion will be borne out Is doubtful
on account of the loss of revenue from
beer, near beer and eventually from
stopping the liquor traffic July 1 next
Loss of taxes from beer and imitation
beer is expected to cut off about $780,
900. 900 a year. Another s50,000,0O has
been lost through the necessity OF
exemptlng from all taxes income from
Liberty bonds up to limits already de-
fined
Despite all these revenue losses from
what was originally expected, the Die
bill still may produce at least the w.
900 100000 the Administration needs
from taxation. If 1t fails. Congress must
turn to consumption taxes, which 1t Ras
sssiduously avoided. mat is practi-
cally the only alternative left besides
tax on sales IL the Administration Is
forced to ask that taxes bear still
larger share OF the wars expense.
For the next twelve months II II
proves true that no more than ss.0Oo,-
100000 in taxes need be raised, regard
less OF the loss OF revenue from the
brewing industry through the Executive
order stopping it, the revenues will be
larger than needed. Through increasing
considerably the appropriation Tor tne
Commissioner of Internal Revenue. II mas
heen made possible to collect fuii
$1,000. 900 900 which otherwise could not
bs reached, and this money Will Apply
10 this years revenue.
War and Excess Profits Untouched.
The biggest source OF revenue In the
bill was not tampered with at all by the
House, although a hard fight against
some OF It's provisions was made in the
Ways and Means Committee, This
source is the combined war and excess
profits section of the measure, which ID
counted upon to produce no less thah
,3,20O OOO,O 900 each year.
An effort was made by many mem
bers OF the committee, backed by Secre-
taTy McAdoo, to have the present ex-
cess profits tax rates incorporated In
the bill with the war profits tax as the
Chairman kitchin IN. CO fought Tor
higher excess profits rates and won out.
Next to this means Of getting money
and next TO the individual income tax the
greatest single item in the bill, Is the
tax on beverages, wnicn cannot pro-
duce now what was hoped for IT. IL
was estimated to produce Sl.1S76O0,O00,
but If war time prohibition becomes ef-
fective next July /. with the brewing OF
malt liquors stopped. practically all OF
This money will be lost to the Govern
n!ent
Incomes, corporate and individual.
will contribute a large share to the ma
TONS war chest. Personal incomes Will
pay tax of $l,482.1s6,000. while the
lakes on corporate income will yield
1884 900 900.
The estates tax will yield $4,000
900 the tax on freight transportation
t750Oo,O00. on express transportation
N2oOO0,0O0, and on passenger transporta-
lion s60.000,000 The tax on the trans
portaton of oil by pipe lines is esti-
mated TO raise S4.550. 900. and Pullman
seats and berths will yield $5.000.000.