The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-09-05
HOSTILITY TO
NEW REVENUE BILL
Apparent Radical Changes
May Be Made in Measure
Before Passage.
MAY DELAY ADOPTION
Does Not Meet With Approval
Of Secretary McAdoo and
May BE Rewritten.

Washington, sept 4.--Nith
members III the senate finance
committee openly hostile 10 the
new revenue bill drafted hy the
house ways and means commit
tee, 1T became apparent today
titit some very radical changes in
tho. measure will have to I've made
before 1t il acceptable To both
houses of congress.
In The present form IL does not
meet the wishes of Secretary
hV-Adoo and IL not liked by --ena-
tors on the finance committee.
The house IL likely 10 BASS it.y
however, without amendments.
The senate committee. under
the leadership of senator SIM
mons, OF North Carolina. will in
all proba bil,ty repeat the prccc-
dent established last year Of en-
entirely rewriting the bill Final
passage probably viii be delayed
until some time after the NO.
Ne'fnber elections
Senators who found time TO study
the bill overnight strongly disapprove
of many of its essential features.
They are in accord win Secretary
MeAdoe IN opposing the increase in
the excess pronts rates and believe
that TIC heavier burden should be
imposed upon strictly war profits.
They also regard the corporation in
come ttx Of is and L. per cent rs
entirely too high.
NcAGioo before Committee.
Secretary McAdoo, Just before leav-
ing last night on has railway inspec-
lion tour. talk ed with senator ssfh-
mons a$ telephone ana stated that he
would like ss4 oppert unity to appear
t.saf ha -
1t begins consideration OF the bill
Senator simmons assured him that
the committee would be glad to hear
him ana TO have the cooperation OF
any OF the assistants of the treasury
department who have made a study
OF the Max situation
Senator simmons refrained from
making ST. outright statement IN re-
gard To Tie eiii out III courtesy To
other mem bers OF Ghe committee and
to Mr. kIchin, who is from his own
state. IT. is understood. however, that
Senator simmons believes. with Sec
rotary McAdoo. that the excess profits
rates nxed in the bin are too high
and would impose an onerous bur
den upon legitimate profits OF capt
laized business.
senator Reed Smoot. OF Utah the
leading Republican member of the
committee, was exceedingly severe III
his criticism OF The bill He charac-
terized II as 'nungtlns ahsnrdity
and said that ii would not come from
the finance committee until "a grea'
many changes had been made in 1t
III is nltng companion piece tc
the bill OF last year" senator Smooi
said. except that it contains lie"
more ahsurdiues, 1t appears to have
been designed 10 reach as few voters
as possible. 1t puts prohihitive tAo
on the productivity OF business ane
penalties American industry.
The corporation income tax flxec
I in L bill and the excess protits rates
constitute another absurdity The eN'
cess profits rates should be lowered
to the figures OF last year and VIZ
should follow Secretary McAdoo
Recommendation for a high wal
nrofits lax 10 catch the real war prom.
I teers. The Is and IL per cent tag
T. on CORPORATION income will ruin ever.
form OF legitimate business
/ Senator S,noot suggested that there
should be consumption taxes provldet
| for in the BILL form OF taxatior
which the house committee studiouslS
avoided. He also favors tax OF
tner cent on att retail safes above II
and said such a tax would produG'
at least s. 900 ,ooo IN TeAehus'-- = -
declared that he could take the on
introduced by him last year ma
a few changes in the war profits rates
and produce as much revenue as th'
house committee estimates VIII %
nroduced by its bill. He asserted tina
under the corporation income la
plan adopted by the house minin'
industry and similar forms OF ousi
ness would be forced TO close GOVT
because of the. penalty placed upo'
failure TO distribute income.
is ii likely that the bill VIII o.
passed before the election senate
Smoot was asked, He replied.
I'VE could pass 1T in month, ou
the Democrats don't want II unti
after election.
A large number of protests agains
specific provisions OF the bill nav
been received by Senator simmons