The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1918-11-22
SIMMONS PLAN
CUTS THE WAR
TAX FOR 1920:
1919 SCHEDULE WOULD +"
RAISE SIX BILLION
Republicans Opposed to Fix.
ing 1920 Rates in
Present Bill. =

WASHINGTON. Nov. 21.-A detailed
plan for revising the pending war reve-
nuc bill so as to impose taxes and pro
vide revenues agSregatinS about SIX oll7
lion dollars next year and four DILLON
dollars in 1920. in line with Secretary
McAdoo's recommendations. was sub
mitted today to the senate finance COM
miitcr by Chairman Simmons
4 decision on the plan was deferred.
m,f a vote may be reached tomorrow.
Republican members vigorously opposed
tho proposal to establish 1920 war tax
rates in the mca aSurc. but Chairman
Simmons said they were advised that IL
they obstruct passage OF the Dill Win.
tho maioritys plan to provide l920 tax
alton, n straight levy OF SO percent on
war profits. to furnish the government
necessary revenues. will b. put through
Returu House Rates.
Senator Simmons plan to reduce tho
bill to sc 600. 100000 for 1919. proposes
rr1 nntion Of the house rates on incomes
and was excess profits. except the six
percent diffcrcntial on undistributed
CORPORATION earnings: elimination OF tho
90 ncrccnt tax on luXurics and retention
of other special miscellaneous taxes. but
at rates not to exceed m increase OF
one third over those Of tho existing law.
FIR 1920, Senator Simmons pan con-
| temnaltos abniShinE the war profits tax.
reduction of individual and corporations
! normal income rates from II TO per
! cent and rcductin by about one third IN
! the excess profits schedule rs now pro-
, posed in the. revised committee draft
! Also. the special. miscellaneous taxes
would be continued at tho 1919 rates. :
| n %
sentcd by Senator Simmons. were said
| to have the approval OF the treasury
! department anl also. generally. Of the
| Democratic members Of the finance COM
mittcc. Republicans indicated general
satisfaction with the 1919 suggestions,
but again opposed the 1920 extension.
Bill Soon Ready.
! The committee hopes to have the bill
! ready soon after the now session Of con-
crcss convcncs December . but the Re;
publican opposition and other considera-
| tions, it was generally expected. may
dclav It's enactment until next January.
The theory upon which the income
and excess profits txes arc differentiat-
ed from the excise. special and misccl-
laneous taxes Of The bill" said Sim.
mons toni Shit, rs based upon The fact
that in the case of incomes and excess
profits. the taxes for the present fisca!
year will be levied upon Incomes made
during the calendar year. 1915. whereas
in tho case of the other taxes the in
crease will apply chiefly to transactions
taking place during the calendar yenr
1919. or since the termination Of the war
conditions"
Tho proposod reduction Of $4,000, ,ooo.-
600 in taxes for 1920. Senator Simmons
explained. would be accomplished prin-
ci2aIly through elimination OF the war
profits tax and reduction from 1c to 8
percent of the rate on the normal corpo-
ration's incomes Of individuals and to-
gcthcr with reduction Of about ono third
in the cxcess profits rates. The high
surta1 rates on individual incomes
would run through 1920.