The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-09-21
Senate Not Satisfied With
Profits Tax Provisions.
Committee VIII Rewrite Whole
War Revenue Law.
WOULD HIT PROFITS HARDER
The Bill May Not Get Thru
Before Election.
House Wants To Adjourn Any
way for Campaign.

Washington. Sept. 21.-Announcing
determination to get the $1,000
100000 war tax bill thru before the
November election il possible, the sem
vision of the measure which passed the
house late yesterday. $50 to 0. Radi-
cal changes in some of its chief pro-
visions are in prospect. Senator
Shoots recent characterization of the
bill as an "absurdity" is generally
They set out today to rewrite the
entire bill.
The clash of house and senate ideas
may prevent nal enactment of the
hill until after elections. House lead
ers frankly favor congressional re-
cess in November and the postpone
ment of action on the tax bill until
December 1. Senate leaders are ex-
tremely hostile to this program and
will agree to it only if it becomes APP
parent that the measure can't pass be-
fore election anyway.
Profits Tax Causes Split.
The chief battle-ground between the
houses probably will be the tax on
profits. The senate committee is
wholly out of sympathy with the
house alternative war and excess prof
its tax plan. Under this plan the
treasury department is to levy which
ever tax will produce more revenue
either a war profits tax of 80 per cent,
on purely war profits or an excess
profits tax ranging from IS per cent
Of profits of between and 15 per
cent of invested capital to 10 per cent
of profits in excess of 20 per cent on
invested capital
The alternative feature of this plan
is roundly condemned by most men,
bers Of the senate committee, who de-
clare that If two plans can be put
rv,fr 1,ilI h rfx ,nIIld IN eft
as well be provided. The more kinds
of alternative taxes there are, they
argue, the more 1oopholes are pro-
yided for escape from the maximum
that ought to be paid.
Up to this point the senate commit
tee is almost unanimous, but when II
comes to substituting q plan for the
house provision, every member has a
different idea. Among suggestions for
provisions are:
Senate Proposals.
The war profits so to 100 per cent
| and excess profits 60, any concern
that made both war and excess
not making war profits pay only the
excess profits tax.
| bPut a flat tax of from 8 to Is pei
cent on all business, regardless OF
whetherTprofits are due=to the war OF
| not the rate OF taxation to be de-
| termined by the percentage of profits
| in the taxable year as compared with
profits in their pre-war years: no
| business to have any exemptions OF
any kind
increase present excess profits
| taxes.
War Profits Sure To Be Hit.
Senator Borah leader of the wealth
| CONSUMPTION group who, last session
| urged the imposition of a heavy wal
| profits tax. predicted today that what
ever plan is finally agreed on. the 81
per cent tax on war profits would be
| in the bill as finally enacted.
| The luxury taxes seem likely to re-
main largely as fixed in the house
| bill They range from 10 to 20 pei
cent on various articles denominate6
luxuries and semi-luxurnes.
| An effort will be made to reduce the
liquor tax on withdrawal of whisky
| from bond for sale, which is prohibi
/ tive and. will produce less revenue
| than the lower tax
AS the bill passed the house it i.
/ estimated it will raise in round fig.
/ ures $780, 100000. OF this $4,000,
| 10000 is to come from war and ex
1 cess profits: S2.S77. 100000 from in
comes; and from all other sources In
Guiding liquor, estates and lnxuries
$685. 100000.