The Barre daily times. (Barre, Vt.) 1897-1959, 1918-08-12
GovernmentMust Formulate
Within Next Few Months
the Greatest War Tax
MEASURE IN
ITS HISTORY
Must Provide About $24,-
000,O0O,0O0 to Carry on
War for Coming Year

W dnultlEIuny aug L. Nbi NeAablVh
with all its problems, and its benefits as
well as its evils, is the subject which will
occupy Congress almost to the exclusion
of all Others when it reassembles for
regular sessions on Aug. "A.
A statesman of an older generation
once remarked that government was
nothing more or less than the power to
levy and collect taxes. 1t is obvious that
while the subject of war taxation has
the attention Of Congress il must necesr
sarily command the attention of the
American people, because the stability of
government is measured chiefly by its
revenue.
The ways and means committee of the
House now is engaged in the preliminary
work Of framing the $24,000,000,0o0 rev.
enue bill which is to provide the sinews
Of war for the coming year. Passage of
the bill by the House in substantially the
form in which it comes from the commit
tee promises TO be a matter of course.
In the Senate, however, will come re.
vision and reconstruction, often the sub
ject Of prolonged debate and even filibus-
ter, which will put the bill more nearly
in the shape in which it ultimately will
become, the Senate, as some historian has
said, being the saucer in which is cooled
the hot tea coming from the cup of the
House" the deliberations there are sure
to be prolonged
After the bill has been passed by the
Senate, it will go to conference" often
referred to as the place where bills really
are made. Here a joint committee rep
resenting Senate and House smooths
out conflicting provisions, arranges com
promises for hard fought amendments,
and finally, inducing each side to give
way little, or when agreement is shown
to be hopeless, discarding provisions en-
tirely, reports back to both houses of
Congress completed bill Sometimes
one house or the other, insistent on some
provision, refuses to accept the decisions
Of the conferees and demands further
consideration, but in the end bill that
is adopted by both branches Of Congress
comes out.
The war revenue bill viii be threading
its way through these tortuous passages
in the halls Of Congress for several
weeks, possibly until snow flies and it
will be well for any American newspaper
reader who wishes TO grasp the signifi-
canoe Of its movements as it progresses
to fix in mind the five stages through
which the bill passes before it goes to
the White House for the signature Of the
president, these stages are;
The bill is framed by the House ways
and means committee. This is now GO
ing on.
1t is considered in the House and with
more or less limited debate, and pos
sibly some amendments from the COM
mittee form, is passed and sent to the
Senate.
The bill is considered by the Senate
finance committee, to which it has been
referred. In this committee the bill may
be practically made over" or to the
structure Of the work of the House may
be added the ideas of the Senate com
mitteemen
1t is debated and passed in the Senate,
often after nights Of prolonged argument
and parliamentary maneuver.
As altered by the Senate the bill goes
to the conference committee Of senators
and representatives, which finally reports
back a compromise draft on which both
houses can agree.
Inasmuch as this particular bill length
ems the long arm Of the government tax
collector so it can reach into almost
every mans pocket, one who attempts
to be informed Of what sacrifices he will
be called upon to make that the world
may become decent place to live in, will
do we'll to survey the needs which have
brought before the country this measure
for taxing the high and low.
The American people Of course will
not only finance their own share of the
war, but they viii furnish in large meas
ure. the monetary backbone to enable
the allies TO continue. This new law is
expected to make an equitable distribu-
ton Of the burden to all the people in
lust proportion to their share of the ma
tion's wealth Results Of the present
laws have not been entirely satisfactory.
Experience has pointed out weak spots.
Estimates submitted to Congress place
the expenditures of the coming year at
about s3O.0OO,O00,o00. It does not nee.
esaarily follow, however, that the actual
expenditures will reach that figure The.
House committee on appropriations IS Of
the opinion that $24,000,000,00o will suf-
fee. According to the original budget,
the expenditures for war purposes alone
will be 24,476, 293 ,68l.77,
The fourth issue of Liberty bonds
would be authorized at Sl6,000,00 5000,
which leaves SS000,000,000 to be secured
through other means. 1t Is with the
raising Of this Ss,000,000,000 that the
new revenue law win be concerned. The
problem confronting those drafting the
bill is just how to levy equitably upon
the various taxable sources; what pro-
portion of the amount is to be taken
through excess profits taxes and income
taxes and what by luxury, consumption
and other taxes At the present time
opinion is divided upon this subject, and
while at first 1t was believed that an ex-
cess profits and income tax would fur.
nish at least $4,000 100000 of the amount
needed, it has now been practically de
termined that in view of the reduction
Of profits brought about through the in.
creased cost Of labor and materials and
also by government price fixing, it will
be impossible to raise more than S4,5O0,-
100000 through this means
Granted that these tentative figures
prove to be correct, there then comes The
question as to how the other $l,500,000,-
900 is to be secured, 1t is positive that
there will be general increase in the
tax rate, but Just how this new rate will
be applied must be determined by thor
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